International shipping company Maersk has announced that it has suspended two shipping services due to Middle East crisis.
The ongoing conflict has seen the Strait of Hormuz, a vital shipping lane that sees more than 20% of the world’s oil transported through it daily, effectively shutdown.
As Iran targeted neighbouring countries in retaliatory strikes, many shipping insurers – notably Lloyd’s of London – have deemed insuring vessels through the narrow passage an unviable economic risk.
The Danish group said in a statement it would halt its FM1 service connecting the Far East to the Middle East and its ME11 service linking the Middle East to Europe.
As of the time of writing, despite US assurances that a domestic insurance service worth a potential US$20bn (c. £14bn) would cover shipping costs, travel through the Strait remains at a standstill.
A Maersk spokesperson said: “This decision has been taken as a precautionary measure to ensure the safety of our personnel and vessels while minimising operational disruption across our wider network.”
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