(March 6): AP Moller-Maersk A/S will suspend two of its container services due to security risks in the Middle East and the Gulf region, the latest sign of how the conflict is upending global supply lines.
Maersk will temporarily halt its FM1 Service, which connects the Far East to the Middle East, and its ME11 Service, which links the Middle East to Europe, according to a notice to customers on Friday.
Maersk had already interrupted bookings from a number of Gulf and Middle East states as attacks on Iran and its counterattacks on US and allied assets disrupt commerce in one of the world’s key transport hubs.
Maersk, which controls about one-sixth of the global container fleet, said in Friday’s notice that the suspensions were a “precautionary measure” to protect its staff amid an “escalating conflict” and followed a risk assessment.
Copenhagen-based Maersk also said its local shuttle services in the Gulf region are halted until further notice. Furthermore, its ME1 service, covering the Middle East to Northern Europe, will drop its stop in Dubai’s Jebel Ali, which normally is the world’s busiest container port outside of Asia.
Transport through the Strait of Hormuz remains at a near standstill as the Middle East war disrupts the vital waterway. A review of shipping signals has confirmed only two commercial transits in the past 24 hours, the Joint Maritime Information Center said on Friday.
The logistics disruptions come as a major blow to the region, where business hubs such as Dubai rely on trade, tourism, transport and finance along with a reputation as a haven in a troubled neighbourhood. Protracted snarls could reverberate across global supply chains, analysts warn.
See also: Global powers must cooperate or face self-harm, ECB’s Lagarde says
Uploaded by Evelyn Chan
