Maersk issues update on growing impact of Middle East conflict on global supply chains

The conflict in the Middle East continues to disrupt trade flows in and out of the region., says Maersk in a commentary released at the end of last week (13 March). What began as a local conflict has now evolved and is disrupting major land, sea and air corridors — “with effects that are starting to reach far beyond the region”.

As conditions shift quickly, Maersk says it is focused on two things: keeping its people safe and helping customers manage the disruptions to their supply chains.

“Our key focus is of course the safety of our colleagues, people that work directly and indirectly for us, and everybody in the area who is impacted by this,” says Karsten Kildahl, CCO of Maersk. “So far, all our staff, whether in terminals, in ports, on vessels, or in offices around the area, are safe and sound. This is our primary concern.”

On behalf of customers, Maersk moves around 20,000 TEU per week into the Gulf region, with a similar outbound volume.

“Our customers with cargo to and from the Gulf are in a very difficult situation,” continues Kildahl. “Together, we are trying to find the best possible solution under these circumstances. This may involve having containers temporarily stored, having them returned, or identifying a new port to which they can be shipped. From there, we are working, where possible, to find alternative transport, so that customers can get their cargo to where they need it. Our focus is on stability and delivering workable solutions in an unpredictable environment.

“Due to the risks and the de facto closure of the Strait of Hormuz, we had to pause acceptance of nonessential cargo to and from the region temporarily.

“To ensure fundamental societal needs are met, essential goods, such as food and medicine, have been prioritised.

“We are prioritising cargo bound for the region – with food and medicine as the highest priority – and are securing trucking capacity to take cargo into the Gulf from ports outside the area. For cargo from Europe, for instance, we are mainly focusing on Jeddah and deploying trucks to move the cargo across the desert to its destination.

“We assess cargo acceptance on an on-going basis with the aim to resume acceptance when possible. For the latest details, please visit our information page on Maersk.com.”