- DHL Group’s CEO, warns of a looming container ship shortage.
- Returning ships to normal routes are slower than anticipated.
- Meyer suggests that sluggish demand for goods may help mitigate shipping.
DHL Group’s CEO, Tobias Meyer, warns of a looming container ship shortage if vessels continue taking longer routes around Africa to avoid Red Sea attacks, reports Yahoo.
Timeline for Shortages
Shortages could begin in about two weeks, with a particular impact on Asia, if Houthi militant attacks persist, according to Meyer’s statements at the World Economic Forum in Davos.
Impact of Houthi Attacks
Houthi attacks on Red Sea vessels, starting in November, have prompted some ships to divert around Africa, intensifying after recent US and UK strikes on Houthi bases in Yemen.
Back-Flow Challenges
The expected pace of returning ships to normal routes is slower than anticipated, raising concerns about the potential for shortages in the near future.
Reasons for Diverting
Operators rerouting ships aim to avoid Houthi threats, with attacks linked to the demand for Israel to end its conflict with the Palestinian group Hamas.
Mitigating Factors
While Meyer acknowledges the risk of shortages, he suggests that sluggish demand for goods may help mitigate the squeeze on shipping capacity.
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Source: Yahoo
