Since December, Maersk and other shipping companies have rerouted vessels around Africa’s Cape of Good Hope to avoid attacks by Iran-aligned Houthi militants in the Red Sea. This longer route has resulted in increased freight rates due to extended voyage times.

“The longer this situation persists, the more these additional costs will become deeply embedded,” Maersk stated, referencing comments made by CEO Vincent Clerc during a recent online event with customers.

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“We are unsure how much of these costs we will be able to recover or for how long. The higher rates we are experiencing now are temporary,” Clerc said.

Maersk also mentioned that it expects to face missing positions or ships that differ in size from what is typically deployed on certain routes, which will limit the company’s capacity to meet current demand.