Maersk says Red Sea disruption will cut capacity by 15-20 per cent in second quarter

The disruption to container shipping traffic in the Red Sea is increasing and is expected to reduce the industry’s capacity between the Far East and Europe by some 15-20 per cent in the second quarter, shipping group Maersk said on Monday.

Maersk and other shipping companies have diverted vessels around Africa’s Cape of Good Hope since December to avoid attacks by Iran-aligned Houthi militants in the Red Sea, with the longer voyage times pushing freight rates higher.

“The risk zone has expanded...