Maersk warning
The conflict in the Red Sea "flaps the wings of the butterfly" and could cause economic and inflationary shocks to the global economy, companies and consumers.
Vincent Clerc, chief executive of shipping giant Maersk, said in an interview that it could take months to reopen the vital Red Sea trade route, which could deal an economic and inflationary blow to the global economy, businesses and consumers.
Clerc says there are "no winners" in the Red Sea conflict: it is not clear that safe access to the Red Sea can be re-established in a matter of days, weeks or months, which could have quite a significant impact on global growth.
Inflation has become a big issue right now, which is putting inflationary pressure on our costs, our customers, and ultimately European and U.S. consumers, which could cause significant disruptions in the short term in late January, February and early March.
As ships choose longer routes, Maersk's fuel bill will be 50% higher. If the problem is not resolved, it will threaten logistics and global supply chains.
As a route through the Suez Canal, the Red Sea plays an important role in global shipping routes, with nearly 12% of global trade passing through it. This shutdown has had a huge impact on global trade, especially Eurasian trade.
As tensions continue to simmer in the Red Sea region, it may continue to push global freight rates soaring. Shippers and forwarders in related areas in the near future, please pay attention to risk prevention and make shipment plans as soon as possible.
