Maersk CEO sees prolonged challenges due to Red Sea disruptions

Maersk’s names Vincent Clerc as new CEO of container, logistics business

 

Maersk CEO Vincent Clerc has issued a cautionary statement regarding the ongoing challenges facing carriers and businesses due to the volatile situation in the Red Sea, which is expected to extend into the third quarter of 2024.

Continued attacks on ships in the Red Sea and Gulf of Aden are severely impacting logistics and supply chains, forcing Maersk and other vessels to reroute around Africa via the Cape of Good Hope, causing difficulties for carriers and businesses.

“We are faced with these challenges together and we need to make sure that we stay close to them as we handle the new set of circumstances that continues to unfold in front of us. These disruptions, and the impact they are having on your business, is not something that I, nor any colleagues at Maersk, take lightly. We know it is hard. We know it is difficult for you. We know it puts you under a lot of pressure,” Clerc during an online event with customers.

He noted that rerouting ships around Africa necessitates two to three additional vessels, depending on the trade.

“Today, all ships that can sail and all ships that were previously not well utilized in other parts of the world have been redeployed to try to plug holes.

“It has alleviated part of the problem, but far from all the problem across the industry, including for Maersk. We are going to have in the coming month missing positions or ships that are sailing that are significant different size from what we normally would have on that string, which will also imply reduced ability for us to carry all the demand that there is,” he said.

Clerc stressed that Maersk would only resume sailing via the Red Sea and Gulf of Aden when the safety of seafarers, vessels, and cargo could be guaranteed.



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