COPENHAGEN (Reuters) -The disruption to container shipping traffic in the Red Sea is increasing and is expected to reduce the industry's capacity between the Far East and Europe by some 15%-20% in the second quarter, shipping group Maersk said on Monday. Maersk and other shipping companies have diverted vessels around Africa's Cape of Good Hope since December to avoid attacks by Iran-aligned Houthi militants in the Red Sea, with the longer voyage times pushing freight rates higher. "The risk zone has expanded, and attacks are reaching further offshore," Maersk said in an updated advisory to customers on Monday.
Due to the difficult security situation in the Red Sea, Danish shipping giant Maersk is expecting an industry-wide loss in freight capacity on routes from eastern Asia to Europe of 15% to 20% in the second quarter. Maersk released the estimates on Monday, citing attacks by Iranian-backed Houthi militants on merchant shipping in the Red Sea. The Houthi militants have said the attacks are intended to support the Palestinian militant group Hamas by making it more difficult for cargo ships to reach