Maersk shares dip after shipping group reroutes vessels around Red Sea

Investing.com — Copenhagen-listed shares in A.P. Møller–Mærsk A/S fell on Tuesday after the Danish shipping giant announced that its vessels due to sail through the southern Red Sea and Gulf of Aden would be rerouted in response to attacks in the area.

In a statement, Maersk (CSE:) said the ships will instead travel to their destinations via the Cape of Good Hope on the southwestern tip of the African continent for “safety reasons.”

These vessels will continue their journeys “as soon as operationally feasible,” Maersk added, noting that customers will be updated “when we know more.” Any upcoming sailings through the Red Sea will be assessed on a case-by-case basis, the company noted.

“We have faith that a solution enabling a return to using the Suez Canal and transiting through the Red Sea and Gulf of Aden will be introduced in the near future, but at this time it remains difficult to determine exactly when this will be,” Maersk said.

“As such, getting vessels moving via the Cape of Good Hope will ultimately be a faster and more predictable outcome for customers and their supply chains.”

Maersk’s decision threatens to exacerbate growing concerns over constraints on the Suez Canal, a crucial artery in global shipping traffic and a key conduit in the supply of . Attacks on commercial vessels by Iran-backed Houthis in Yemen have increased since the outbreak of the Israel-Hamas conflict, leading Maersk’s rivals like Hapag-Lloyd and MSC to reconfigure the routes of its services.

Oil major BP (NYSE:) also paused shipments through the region on Monday, while U.S. defense officials have unveiled an expanded task force to provide greater protection to ships passing through the Red Sea.