Red Sea: Maersk Warns Import-Driven Nations of Price Increment Ahead of June

Due to the Red Sea situation, Maersk, a Danish shipping and logistics company, has warned of temporary price increments ahead of June.

In a customer advisory notice issued on Wednesday, Maersk disclosed that the ripple effects of global supply chains have intensified in recent months.

The Red Sea situation, however, is caused by the persistent attacks on container vessels by the Houthis militants that have been wreaking havoc on trade routes in seawaters.

Maersk says this has caused “industry-wide” disruptions in the global market.

We now expect these disruptions to continue into the third quarter of 2024,” the advisory notice reads.

Maersk also noted that despite hopes for improvement, it continues to face “additional challenges” and “costs”, including rerouting, which has incurred more operation costs due to longer journeys and delays.

Hence, price increments are inevitable.

We are doing what we can to add further capacity to our routes per our customers’ needs. So far, we have leased more than 125,000 additional containers, increased our sailing speed, and organised our fleet to enhance capacity where possible,” it added.

Meanwhile, Nigeria, which predominantly imports nearly everything and is currently challenged by the FX instability of N1,500/$1, faces Maersk’s price increments on import fees.

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Mayowa Durosinmi

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M. Durosinmi is a West Africa Weekly investigative reporter covering Politics, Human Rights, Health, and Security in West Africa and the Sahel Region

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