DHL CEO says Red Sea disruption could lead to shipping container shortage

Date:

DHL chief executive Tobias Meyer on Wednesday warned the ongoing disruptions to global trade caused by Houthi rebel attacks in the Red Sea could lead to shipping container shortages in Asia in the coming weeks.

Meyer said during a panel discussion in Davos that such a shortage could occur because a sufficient amount of containers may not be transported back to Asia.

“We have to keep an eye on that,” he said, while adding that the current disruptions cannot be compared to the supply chain difficulties from three to four years ago at the onset of the COVID-19 pandemic.

CHEVRON CEO SAYS HOUTHI ATTACKS IN RED SEA POSE ‘VERY REAL’ RISKS TO OIL FLOWS AND PRICES

In the latest update on the Red Sea situation on DHL’s website from last week, the company warned “shipping costs are increasing in significant trade routes for the foreseeable future” as every major shipping line has suspended services in the Red Sea and is sending their vessels around Africa’s Cape of Good Hope, adding roughly two weeks to shipping times.

DHL logo

Ticker Security Last Change Change %
DHLGY DEUTSCHE POST AG 47.41 -0.76 -1.58%

“[E]quipment issues are beginning to emerge and are expected to worsen,” DHL warns on its website. “This is due to vessels not returning to Asia on time, resulting in a shortage of available equipment for future shipments.”

SHELL SUSPENDS ALL RED SEA SHIPMENTS INDEFINITELY AMID HOUTHI ATTACKS FROM YEMEN: REPORT

Since November, Iranian-backed Houthi rebels in Yemen have launched dozens of missiles and drones at commercial vessels around the Red Sea. They are claiming to avenge the Israel counteroperation in Gaza against Hamas terrorists in response to the Oct. 7 attacks. The Houthi attacks have grown increasingly indiscriminate and have even imperiled tankers and container ships moving sanctioned Russian oil. 

Houthi fighter on cargo ship in Red Sea

The Houthi attacks provoked a U.S. military response, with President Biden ordering airstrikes on military targets in Yemen. The Biden administration is currently considering whether to reverse a 2021 decision to remove the foreign terrorist organization (FTO) label imposed on the Houthis by the Trump administration.

FOX Business’ Chris Pandolfo and Reuters contributed to this report.

Read the full article here

spot_img

Share post:

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.

Popular

More like this
Related

Credit card interest rates predicted to fall, but debt remains high

Predictions abound for credit card...

Senate confirms Paparo as new INDO-PACOM commander

Senators on Wednesday confirmed Adm. Samuel Paparo as the...

NEW Strike Industries P365 Enhanced Grip Module Now Available

If you’re not a fan of your original SIG...