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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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Gold Hits Record High

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
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Gold Hits Record High

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices charged to an all-time high on Thursday as expectations of more US Federal Reserve rate cuts and uncertainty over the US presidential election boosted demand for bullion, while traders awaited US economic data.
Spot gold rose 0.2% to $2,678.13 per ounce by 0934 GMT, after hitting a record high of $2,685.60, Reuters reported.
US gold futures gained 0.1% to $2,693.60.
"With the US election less than three weeks away, market caution is likely to remain a key theme. Given the tight race between Donald Trump and Kamala Harris, this adds another layer of uncertainty – stimulating demand for safe haven assets," said FXTM senior research analyst Lukman Otunuga.
Gold has added over 30% so far this year, with a record-breaking rally driven by expectations that the Fed will further cut rates this year after a jumbo reduction last month and on the ongoing geopolitical uncertainties.
The European Central Bank is also expected to make its first back-to-back rate cut in 13 years later in the day.
Lower interest rates and geopolitical tensions tend to boost bullion, which is considered a safe asset and yields no interest.
"The LBMA poll that came out from Miami earlier in the week, where the base look for gold prices was to rally near $3,000 in the next year and silver doing even better, I think that potential is also just attracting a bit of attention," said Ole Hansen, head of commodity strategy at Saxo Bank.
The price of gold is expected to rise to $2,941, a troy ounce over the next 12 months from the current $2,661, delegates to the London Bullion Market Association's annual gathering predicted earlier this week.
Traders are on the lookout for the US retail sales and industrial production data for September and weekly jobless claims data due later in the day.
"A set of disappointing US data may fuel bets around Fed rate cuts," Otunuga added.
Elsewhere, spot silver fell 0.3% to $31.57 per ounce. Platinum rose 0.6% to $999.20 and palladium fell 0.4% to $1,019.56.