Shipping giant warns about global supply chain

A cargo ship in the Red Sea (Photo: AFP).

Japanese shipping giant Mitsui OSK Lines (MOL) has warned of the risk of disruption to global supply chains as ongoing tensions in the Red Sea could last a year.

Major shipping companies, including MOL, have temporarily suspended use of the Suez Canal, a vital maritime trade route connecting the Mediterranean Sea to the Red Sea and a vital shipping route for energy and goods between Asia and Europe.

This comes after Houthi forces have carried out dozens of drone and missile attacks on ships passing through the Red Sea since the Israel-Hamas conflict broke out last October.

“It’s a historic event,” MOL President Takeshi Hashimoto said in an interview with Bloomberg , referring to the halt in shipping by shipping operators. MOL is one of the world’s largest ship operators with a fleet of about 800 ships.

“This situation will last at least two to three months. And in the worst case, it could be six months or a year,” he noted. Hashimoto said there are enough ships to handle the disruption. However, he warned that if the global economy suddenly grows and demand for goods increases, there will be a shortage of shipping capacity.

Shipping through the Suez Canal has plummeted since Houthi attacks in the area, forcing shipping companies to divert, impacting global supply chains.

Source: https://dantri.com.vn/the-gioi/ga-khong-lo-van-tai-bien-canh-bao-ve-chuoi-cung-ung-toan-cau-20240212202831925.htm