The Gunde Maersk container ship is docked at the Port of Oakland on June 24, 2024 in Oakland, California.
Justin Sullivan | fake images
Danish shipping giant Maersk on Friday temporarily suspended two services linking the Middle East with Asia and Europe as the Iran war continues to disrupt global supply chains.
The company, widely regarded as a barometer of global trade, said the decision to halt the FM1 service, which connects the Far East to the Middle East, and the ME11 service, which links the Middle East to Europe, was a precautionary measure to ensure the safety of its staff and ships.
It comes as the US-Israeli-led war against Iran enters its seventh day, with the expanding conflict resulting in the effective disruption of maritime traffic through the strategically vital Strait of Hormuz.
The waterway is a key narrow shipping corridor connecting the Persian Gulf and the Gulf of Oman. Approximately 20% of the world’s oil and gas usually pass through it.
However, the container shipping giants have suspended operations through the Strait of Hormuz since the United States and Israel launched attacks on Iran on February 28 and diverted ships towards the southern tip of Africa.
The crisis has left 147 container ships sheltered in the Persian Gulf, according to freight analysis firm Xeneta, causing delays, port congestion and shipping rate increases that are rippling through global markets.
In addition to the changes to the FM1 and ME11 service, Maersk said its shipping services in the Persian Gulf region were suspended until further notice.
The ME1 service connecting the Middle East with northern Europe will temporarily abandon a call at Jebel Ali, a major port city in the United Arab Emirates, Maersk said, and will continue calling to India and Oman.
Maersk shares last fell 0.6%.
