AI Legalese Decoder: Simplifying Maersk’s Red Sea Diversion Extension for the ‘Foreseeable Future’
- January 5, 2024
- Posted by: legaleseblogger
- Category: Related News
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### Danish Shipping Giant Maersk Extends Vessel Diversions Due to Safety Concerns
The Maersk Sentosa container ship sails southbound to exit the Suez Canal in Suez, Egypt, on Thursday, Dec. 21, 2023.
Danish shipping giant **Maersk** has announced that it will be extending its diversion of vessels from the Red Sea for the “foreseeable future” due to safety concerns amid a spate of attacks by Houthi militants. This decision will affect Europe-Asia routes as vessels will have to take the longer Cape of Good Hope route around southern Africa.
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“The situation is constantly evolving and remains highly volatile, and all available intelligence at hand confirms that the security risk continues to be at a significantly elevated level,” Maersk said in a statement. Despite the disruption in supply chain and delays to deliveries, the company hopes that this move will bring more consistency and predictability for its customers.
Several European firms, including Sweden’s Ikea, British retailer Next, and appliance firm Electrolux, have already warned of delays on some products due to supply chain disruption. Maersk had resumed travel through the Red Sea and Gulf of Aden after a December pause, but halted it again on Tuesday after one of its vessels was attacked. German shipping firm Hapag-Lloyd has also said it will continue to divert vessels away from the Red Sea amid Houthi attacks.
“What we can say for the moment [is] we don’t see the passage through the Red Sea and the Suez Canal as safe,” Nils Haupt, head of corporate communications at Hapag-Lloyd, told CNBC’s “Squawk Box Europe” on Friday. “We had an attack in December, you can’t imagine how hard that was, not only for us as a company but especially for our crew. There were several attacks in the last days and as long as the passage through the Red Sea and Suez Canal is not safe, we won’t pass,” he added.
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