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Maersk Diverts Ships Away from Red Sea

(FILES) Sailors pass by the Ebba Maersk container ship as they participate in the annual long-distance dhow sailing race, known as al-Gaffal, near Sir Abu Nuair island towards the Gulf emirate of Dubai on June 4, 2022. (Photo by Karim SAHIB / AFP)
(FILES) Sailors pass by the Ebba Maersk container ship as they participate in the annual long-distance dhow sailing race, known as al-Gaffal, near Sir Abu Nuair island towards the Gulf emirate of Dubai on June 4, 2022. (Photo by Karim SAHIB / AFP)
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Maersk Diverts Ships Away from Red Sea

(FILES) Sailors pass by the Ebba Maersk container ship as they participate in the annual long-distance dhow sailing race, known as al-Gaffal, near Sir Abu Nuair island towards the Gulf emirate of Dubai on June 4, 2022. (Photo by Karim SAHIB / AFP)
(FILES) Sailors pass by the Ebba Maersk container ship as they participate in the annual long-distance dhow sailing race, known as al-Gaffal, near Sir Abu Nuair island towards the Gulf emirate of Dubai on June 4, 2022. (Photo by Karim SAHIB / AFP)

Maersk is diverting all container vessels from Red Sea routes around Africa's Cape of Good Hope for the foreseeable future, warning customers to prepare for significant disruption.

Shippers across the world are switching away from the Red Sea - and so the shortest route from Asia to Europe via the Suez Canal - after Iranian-backed Houthi militants in Yemen stepped up attacks on vessels in the Gulf region to show their support for Hamas fighting Israel in Gaza.

The trip round Africa can add about 10 days to journey times and requires more fuel and crew-time, jacking up shipping costs, Reuters reported.

Denmark's Maersk had said earlier this week it would pause all vessels bound for the Red Sea following an attack on one of its ships by the Houthis, and has since begun redirecting ships around Africa.

"The situation is constantly evolving and remains highly volatile, and all available intelligence at hand confirms that the security risk continues to be at a significantly elevated level," Maersk said in a statement on Friday.

As a result, the company, which controls about one-sixth of global container trade, will divert all Maersk vessels around the Cape of Good Hope "for the foreseeable future.”

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Türkiye's Central Bank Holds Rate at 50%, Warns on Inflation

People rest in a public park outdoors away from buildings following an earthquake in Malatya, southern Turkey, Wednesday, Oct. 16, 2024. (Burhan Karaduman/Dia Photo via AP)
People rest in a public park outdoors away from buildings following an earthquake in Malatya, southern Turkey, Wednesday, Oct. 16, 2024. (Burhan Karaduman/Dia Photo via AP)
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Türkiye's Central Bank Holds Rate at 50%, Warns on Inflation

People rest in a public park outdoors away from buildings following an earthquake in Malatya, southern Turkey, Wednesday, Oct. 16, 2024. (Burhan Karaduman/Dia Photo via AP)
People rest in a public park outdoors away from buildings following an earthquake in Malatya, southern Turkey, Wednesday, Oct. 16, 2024. (Burhan Karaduman/Dia Photo via AP)

Türkiye's central bank held interest rates at 50% on Thursday as expected but cautioned that recent data had lifted inflation uncertainty, in a hawkish signal ahead of an expected easing cycle in coming months.
"In September, the underlying trend of inflation posted a slight increase," the bank's policy committee said, adding: "the uncertainty regarding the pace of improvement in inflation has increased in light of incoming data."
According to Reuters, analysts said the message could reinforce the view that the bank will wait until around January to ease monetary policy, after a more than year-long effort to slay years of soaring inflation.
The last time the bank raised its main policy rate was in March, when it hiked by 500 basis points to round off an aggressive tightening cycle that started in June last year.
Since then, it has kept the one-week repo rate on hold. In a change of messaging last month, it began setting the stage for a rate cut by dropping a reference to potential further tightening.
Yet after monthly inflation was higher than expected at nearly 3% in September, a Reuters poll showed analysts expected the bank to wait until December or January to begin its anticipated easing cycle.
Nicholas Farr, economist at Capital Economics, said the bank signaled that the "slow pace of disinflation will prevent monetary easing this year.”
"It seems clear that the (central bank) – like us – doesn't think the conditions are in place for a monetary easing cycle to start very soon."
Annual inflation has dropped to 49.4% - below the policy rate for the first time in this cycle - from a peak of 75% in May.
The central bank is closely watching the monthly rate for signals of when to begin easing, though it has only dipped below 2% once this year, in June. It is also watching for high household inflation expectations to ease toward its targets.