Maersk Warns of Operational Meltdown Amid Anticipated Suez Canal Reopening

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Maersk has issued a stark warning about the potential for an “operational meltdown” when carriers are once again able to transit through the Suez Canal.

Rerouting via Cape of Good Hope to Avoid Red Sea Risks

In collaboration with Hapag-Lloyd, Maersk announced that the Gemini Cooperation services would reroute via the Cape of Good Hope, bypassing the still-volatile Red Sea region for safety reasons. Yesterday, Maersk informed its customers that, following thorough evaluation, both Maersk and Hapag-Lloyd would implement the Cape of Good Hope network for Gemini Cooperation, effective from 1 February 2025, citing ongoing safety concerns.

Planning for Customer Operations

Maersk’s Chief Commercial Officer, Karsten Kildahl, stated that the decision to announce the change four months in advance was aimed at helping customers plan their operations, providing clarity on lead times and product delivery schedules.

Challenges in Transitioning Back to Suez Canal

Hapag-Lloyd told The Loadstar that, while they intend to return to the Suez Canal as soon as conditions allow, there are too many uncertainties to predict an exact timeline. They plan to ensure a smooth transition, but unknown factors could delay the process.

Vessels’ Stability and Predictability is Crucial for Customers

Kildahl emphasized the importance of stability and predictability in shipping operations, stating that abrupt cargo delays could cause significant disruptions. He warned that when the canal reopens, it could lead to a backlog, as many vessels would attempt to transit at the same time, causing major operational challenges.

 

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Source: The Loadstar