By Dominic Chopping


A.P. Moeller-Maersk said disruption to its container shipping operations due to hostilities in the Red Sea has expanded, with its entire ocean network now affected.

Container operators have been forced to send their vessels on longer, more expensive routes around southern Africa's Cape of Good Hope to avoid the Red Sea after Houthi rebels began attacking commercial vessels at the end of last year, creating a shortage of vessels despite continued strong demand.

Maersk Chief Executive Vincent Clerc said Wednesday that all of the company's ships that can sail, as well as all ships that were previously underutilized, have now been redeployed to try to plug holes, but that this will still unlikely be able to fulfill demand in the coming months.

"The cascading impact of these disruptions extends beyond the primary affected routes, causing congestion at alternative routes and transshipment hubs essential for trade with Far East Asia, West Central Asia, and Europe," the company said.

Ports across Asia, including Singapore, Australia, and Shanghai, are experiencing delays as ships reroute and schedules are disrupted, caused by ripple effects from the Red Sea, it added.

The approaching typhoon season is also expected to impact areas of China, creating further risks of congestion, Maersk said.

The company said demand is being driven by strong Asian exports to North America and Europe, adding that it is preparing for continued disruptions by focusing on network adjustments, securing additional containers and exploring further capacity enhancements.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

07-17-24 1131ET