Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Red Sea upheaval 'could last for months' - Maersk
(Sharecast News) - AP Moller-Maersk warned on Thursday that the disruption in the Red Sea could last for months, putting both trade and the global economy at risk. In an interview with the Financial Times, Vincent Clerc, the Danish firm's chief executive, called the closure of the Red Sea to most container shipping "brutal and dramatic" with "no winners".
"It's unclear to us if we are talking about re-establishing safe passage into the Red Sea in a matter of days, weeks or months. It could potentially have quite significant consequences on global growth," he said.
The Red Sea was closed to container shipping after a series of attacks by Yemen's Houthi rebels. A Maersk container was attacked last month, and last week the firm - which carries around a fifth of ocean freight - said it would divert ships from the Red Sea "for the foreseeable future".
The Red Sea is a crucial trade passage between Asia and Europe. With the route now closed, however, ships are having to make costly detours around South Africa.
Clerc told the FT: "At this time when inflation is a big issue, it's putting inflationary pressure on our costs, on our customers and ultimately on consumers in Europe and the US.
"In the short run, it could cause significant disruptions at the end of January, February and into March."
The FT noted that Maersk's fuel bill would be 50% higher as a result of ships making lengthy detours around the Cape of Good Hope.
Clerc said: "We are urging the international community to mobilise and do what it needs to do to re-open the strait. It is one of the main arteries of the global economy, and it is clogged right now.
"It could have wider-ranging consequences, not only for the industry but for end consumers, product available, the global economy as a whole."
The UN Security Council passed a resolution on Wednesday demanding an immediate end to the Houthi attacks.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.