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IPFS News Link • World News

Maersk "Suspends" Many Short-Term Bookings As Suez Backup Strains Capacity

• Zero Hedge - Tyler Durden

The Suez Canal blockage's ripple effect on the global supply chain has forced Maersk to suspend bookings of short-term contract shipments in many export markets. 

Maersk published a customer advisory this week to inform clients the Suez Canal blockage for six days has heavily impacted its supply chain and significantly reduced capacity. As a result, the world's largest shipper is suspending bookings of short-term contracts to deal with capacity deficiencies. 

"We have earlier communicated that even when reopened, the blockage of the Suez Canal would have ripple effects on global supply chains for weeks to come," Maersk said in a customer advisory.

"However, expecting a significant loss in capacity over multiple weeks, depending on market dynamics, we have decided to temporarily cease short term bookings placed via Spot, as well as short term contracts this week and in the immediate future, in these geographical services, the advisory continued. Spot is Maersk's online booking platform for container shipments.