CEO Rolf Habben Jansen of Hapag-Lloyd, the world's fifth-largest ocean carrier, expresses optimism for trade demand in the second half of 2024, despite a drop in 2023 net profit and increased costs due to Red Sea diversions. The company is facing challenges from attacks in the Red Sea, increased emissions, and a longer shipping route. Hapag-Lloyd has formed a new ocean alliance with Maersk to improve schedule reliability, and U.S. shippers are preparing for potential port strikes during the peak shipping season.
Shipping companies Hapag-Lloyd and Maersk have temporarily halted travel through the Red Sea and the Bab el-Mandeb Strait due to attacks by Iranian-backed Houthi militants from Yemen. The attacks, targeting vessels headed for Israel, have raised concerns about the safety of seafarers. Maersk, the world's second-largest container shipping company, will divert ships away from the area, while Hapag-Lloyd will pause all container ship traffic through the Red Sea. Israel-based carrier ZIM has rerouted vessels to avoid the Arabian and Red Seas, adding significant travel time and fuel costs. The World Shipping Council has called for decisive action to protect seafarers, emphasizing the importance of safeguarding freedom of navigation. Discussions are ongoing to form a maritime task force to ensure safe passage in the Red Sea.
