Shipping giant Maersk halts two key shipping services due to Iran war
Container ship Gunde Maersk docked at the Port of Oakland in Oakland, California, on June 24, 2024.
Justin Sullivan | Getty Images
Danish shipping giant Maersk temporarily suspended two services connecting the Middle East to Asia and Europe on Friday as the Iran war continues to disrupt global supply chains.
The company is considered the barometer of global trade. in question The decision to stop the FM1 service connecting the Far East to the Middle East and the ME11 Service connecting the Middle East to Europe was a measure taken to ensure the safety of personnel and ships.
It comes as the US- and Israeli-led war against Iran enters its seventh day, with the widening conflict resulting in an effective halt to shipping traffic in the strategically vital Strait of Hormuz.
The waterway is an important and narrow maritime corridor connecting the Persian Gulf and the Gulf of Oman. Roughly 20% of global oil and gas typically passes through here.
However, container shipping giants suspended their operations in the Strait of Hormuz after the United States and Israel launched an attack on Iran on February 28, rerouting ships to the southern tip of Africa.
According to cargo analytics firm Xeneta, the crisis has caused 147 container ships to be docked in the Persian Gulf; This has led to fluctuating delays, port congestion and increases in freight rates in global markets.
Alongside the changes to the FM1 service and ME11 service, Maersk said shuttle services in the Persian Gulf region have been suspended until further notice.
Maersk said its ME1 service, which connects the Middle East to Northern Europe, will temporarily cease calling in Jebel Ali, a major port city in the United Arab Emirates, and will continue calling India and Oman.
Maersk’s shares were last down 0.6%.
