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Maersk Says Impact from Red Sea Attacks Continues to Intensify

A cargo ship boat model is pictured in front of the Maersk logo in this illustration taken March 3, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights
A cargo ship boat model is pictured in front of the Maersk logo in this illustration taken March 3, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights
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Maersk Says Impact from Red Sea Attacks Continues to Intensify

A cargo ship boat model is pictured in front of the Maersk logo in this illustration taken March 3, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights
A cargo ship boat model is pictured in front of the Maersk logo in this illustration taken March 3, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights

The negative impact on maritime shipping and global supply chains from attacks in the Red Sea continues to intensify as traffic is rerouted away from the Suez Canal, Danish shipping company A.P. Moller-Maersk said on Thursday.

Attacks in the Red Sea by Iran-aligned Houthi militants have disrupted a route vital to east-west trade, with prolonged rerouting of shipments, pushing freight rates higher and causing congestion in Asian and European ports.

Maersk said recent data showed that the number of ships crossing through the canal has fallen 66% since carriers began diverting their vessels around Africa. Maersk did not elaborate on the data, Reuters reported.

"These disruptions have led to service reconfigurations and volume shifts, straining infrastructure and resulting in port congestion, delays, and shortages in capacity and equipment," it added.

Maersk in July said disruption to its container shipping via the Red Sea had extended beyond trade routes between the Far East and Europe to its entire global network, and warned of a "cascading impact" causing congestion.

"The timeline for easing these disruptions and returning to 'normal' remains uncertain," it said on Thursday.

It added that demand for container shipping remains robust.

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UK Banks Brace for Possible Tax Rise as Budget Nears

Barclays and HSBC buildings are seen in London, Britain October 20, 2020. REUTERS/Matthew Childs
Barclays and HSBC buildings are seen in London, Britain October 20, 2020. REUTERS/Matthew Childs
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UK Banks Brace for Possible Tax Rise as Budget Nears

Barclays and HSBC buildings are seen in London, Britain October 20, 2020. REUTERS/Matthew Childs
Barclays and HSBC buildings are seen in London, Britain October 20, 2020. REUTERS/Matthew Childs

UK-based banks are stepping up lobbying efforts against possible tax hikes in the government's inaugural Budget on October 30, amid mounting worries it may tap the cash-rich sector to boost Britain's finances, senior industry sources told Reuters.
Finance minister Rachel Reeves is due to meet senior representatives of the banking sector in the coming days, where bankers expect a rise in taxes on lenders' profits will be discussed, two of the sources said.
So far neither Prime Minister Keir Starmer nor Reeves has said banks will be required to pay higher taxes, but Starmer's recent reference to the burden falling on those with “broader shoulders” has fueled concerns a policy change might be imminent, three sources said.
The sources, who declined to be named because of the sensitivity of the matter, said they anticipate the Treasury will seek to hike taxes by increasing an existing surcharge on profits that lenders already pay.
This plan would be easier for the finance minister to achieve than cutting the amount of interest UK banks earn on reserves parked at the Bank of England, a measure which could distort the effects of its monetary policy, the sources said.
HSBC, Britain's largest bank, posted a 78% rise in 2023 pretax profit to $30.3 billion pounds in February and domestic peers including NatWest Group and Barclays have posted similarly bumper returns.
According to the sources, UK banks are already taxed more aggressively than many other international rivals, and increasing the sector's costs via taxes could have an impact on the cost and availability of credit, the sources said.
The existing UK bank levy was introduced in 2011 to curb a crisis-era culture of excessive risk and reckless growth across the industry in the wake of the global financial crisis.
Shares in UK banks dipped briefly last week after the Financial Times quoted an unnamed former government official making the case for a “sensibly crafted” levy on banks that have enjoyed bumper profits on the back of higher interest rates.