Shipowners Settle Into New Normal Amid Red Sea Disruptions

16 Aug 2024 Issue: 67 / 33 By: James Marriott

International shipowners were uncertain at the beginning of the year how long Red Sea disruptions would last. But with insecurity deepening and diversions looking more permanent, traders and shipowners are cashing in on the new normal.

Global shipping markets have been heavily disrupted through the first half of 2024 by continued attacks from Yemen’s Houthis on merchant vessels in the Red Sea and Gulf of Aden. Many companies at the beginning of the year were unsure if the insecurity would last. But major shipping firms now appear to have accepted that Red Sea disruptions may last for some time, and that they bring some benefits.

Global container firms Maersk and Hapag Lloyd have upped their profit outlook for the year on expectations of continuing high shipping rates due to the disruptions. Maersk on 1 August hiked its 2024 profits guidance for the second time, to $9-11bn from $7-9bn, whilst Hapag Lloyd on 9 July hiked its guidance to $1.3-2.4bn from up to $1.1bn. (CONTINUED - 823 WORDS)