World News
Red Sea Taskforce May Take Weeks to Take Effect: Maersk CEO
The international taskforce set up to boost maritime security in the Red Sea after a spate of attacks from Yemen may take weeks to make the area safe again, according to container line AP Moller-Maersk.
The US announced 'Operation Prosperity Guardian' on Monday, a 10-nation taskforce seeking to improve security for commercial shipping in the Red Sea.
Several leading shipping companies including Maersk have instructed their vessels to avoid the Red Sea and Suez Canal in favour of a much longer route around Africa to avoid attacks, which will lead to a significant boost to bunker demand as well as delays for shippers.
But the taskforce may take several weeks before it can make the area safe enough for shipping companies to return, Maersk CEO Vincent Clerc said in an interview with CNBC on Tuesday.
"It was important to see that the global community would react very strongly, and they did decisively today by establishing this taskforce," Clerc said.
"We understand it's going to take a few weeks for the taskforce to be fully operational and reopen the safe passage across the Red Sea.
"In the mean time we've decided to reroute some of our ships south of the Cape of Good Hope in order to reach their final destination.
"We think this is going to be actually the fastest way for us to get that cargo delivered to our customers."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 571.00 | 1.50 | 685.50 | 5.50 |
| Rotterdam | 516.50 | 1.50 | 677.50 | 3.50 |
| Houston | 556.00 | 6.00 | 679.00 | 1.00 |
| Fujairah | 565.00 | 4.50 | 755.00 | 1.50 |
| Global 20 Ports Average | 589.00 | 3.00 | 764.50 | 3.50 |
| Global 4 Ports Average | 552.00 | 3.00 | 699.00 | 2.50 |
| Global Average Bunker Price | 635.50 | 1.00 | 811.50 | 11.00 |
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