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Off again on again Maersk is off again on Red Sea/Suez Canal transit, freight rates triple
From the story:
Uncertainty remains despite a U.S.-led military effort to curb the attacks. Maersk had resumed the Suez route, but suspended it again in recent days after one of its ships was targeted by missiles and small boats.
Asia-Europe is Maersk’s biggest trade lane, and freight rates on the route have roughly tripled from their early December levels, the Goldman Sachs analysts said, while “the impact on annual contract rates is likely to be positive, albeit dependent on how the security situation evolves.”
Maersk’s other major routes are seeing “positive second-order effects from the Suez disruption.” Global trade is also being stymied by drought in the Panama Canal.
However, analysts do not currently foresee the same level of global supply chain disruption and capacity constraint as experienced during the Covid-19 pandemic, which triggered a huge spike in freight rates and record profits for companies including Maersk.