Three men standing in a warehouse managing ending inventory counts

The CEOs of major freight carriers anticipate ongoing disruptions in the Red Sea due to threats, affecting shipping for weeks or possibly months. Vincent Clerc, CEO of A.P. Moller-Maersk, expressed concerns about longer transit times and supply chain disruptions. DHL Group CEO Tobias Meyer noted rerouting ships around southern Africa might lead to container capacity imbalances and shortages, particularly in Asia. European Central Bank President Christine Lagarde is monitoring potential impacts on wage bargaining, profit margins, energy prices, and supply bottlenecks. The Red Sea challenges stem from Houthi rebel attacks on commercial ships. The Biden administration plans to designate the Houthis as a global terrorist group, aiming to deter their actions. The shipping industry has raised spot rates, causing a triple increase in costs for cargo owners and affecting U.S. importers. Transpacific shipping rates surged 58% to $4,375 per 40-foot container as of January 17.