Maritime vessels are still rerouting around the Cape of Good Hope because of risk in the Red Sea.
Sub-Saharan Africa’s port connectivity has substantially benefited from risk related to Red Sea transits since Yemen’s Houthi rebels started attacking commercial shipping in November 2023 – violent maritime disruption persisting the longer the war in Gaza drags on.
However, the spike in connectivity has been most pronounced for South Africa’s ports, where a 54.8% increase in connectivity has been recorded for east-west trade lanes. Port Louis in the Indian Ocean shares in this spike, which includes ports like Cape Town and Durban, Container News reports.
UNCTAD notes that, since November 2023, the attacks around the Bab-el-Mandeb Strait to the Gulf of Aden have driven a steady diversion of shipping traffic away from the Suez Canal.
The rerouting is significantly longer – about two weeks give or take – but most shipping lines have built the extended voyages into fleet capacity, including costs related to increased fuel usage, higher insurance premiums and a scramble for capable alternative ports.
Even lines such as the French carrier CMA CGM, which initially persisted with Suez sailings under naval protection, have seemingly withdrawn from the natural east-west waterway through Egypt.
Vincent Clerc, CEO of Maersk, has described the impact as “massive” since December 2023, noting that extended rotations around Africa now require additional ships and have strained logistics capacity.
“All ships that can sail and all ships that were previously not well utilised in other parts of the world have been redeployed to try to plug holes,” he told attendees at an online event.
UNCTAD’s Red Sea Crisis and Implications for Trade Facilitation in Africa report confirms that ports around the Cape have experienced increased vessel calls, especially for bunkering and refuelling.
The disruption has been described as massive, with extended rotations around Africa requiring additional vessels and stretching logistics networks. Ships that were previously under-utilised in other regions have been redeployed to cover the gaps.
Ports around the Cape have consequently experienced a surge in vessel calls, particularly for bunkering and refuelling. This increase in traffic has created congestion in bunkering hubs and added significant pressure on port infrastructure. Cape Town and Durban, as well as Port Louis, are among the ports seeing the highest demand.
However, not all ports are positioned to take full advantage. Many were already grappling with congestion and inefficiencies before the Red Sea crisis, and investment is needed to strengthen their competitiveness.
For South Africa, the situation has been more favourable. Operational improvements by the country’s state-owned logistics utility have come at a crucial time, helping to restore service levels and capacity at previously underperforming ports.
Experts note that changing trade lanes place a premium on optimal port connectivity. Sustaining improved throughput and service delivery will be key if South Africa is to fully capitalise on the rerouting of global trade around the Cape of Good Hope.
Source: Freight News