The ongoing security crisis in the Red Sea has forced many shipping companies to reroute their vessels around the Cape of Good Hope, creating a surge in demand for refueling and restocking at African ports.
According to shipping giant A.P. Moller-Maersk A/S, the Namibian port of Walvis Bay or Port Louis in Mauritius are “top options” for filling up if there’s a need en route. The company still prefers to bunker at the start or end of a route, but the situation in the Red Sea has made that more difficult and costly.
The Red Sea is a vital waterway for global trade, connecting the Mediterranean Sea with the Indian Ocean and Asia. However, since late 2023, the region has been plagued by missile attacks from Yemen’s Houthi rebels, who are fighting a Saudi-led coalition in a civil war. The Houthis have targeted commercial and military vessels, as well as oil facilities and airports in Saudi Arabia.
The attacks have raised the risk of sailing through the Red Sea and the Suez Canal, which is the shortest route between Europe and Asia. Some shipping lines have decided to avoid the area altogether and take the longer but safer route around Africa, adding about two weeks and thousands of dollars to their voyages.
This has boosted the maritime traffic and business at African ports, which are already undergoing major expansion and modernization projects to cope with the growing demand for cargo handling in the continent. According to UNCTAD’s Review of Maritime Transport 2023, Africa’s share of global seaborne trade increased from 2.7% in 2018 to 3.2% in 2019 and is expected to rise further in the coming years.
However, not all African ports are ready to handle the influx of ships seeking refueling and restocking services. Some ports face challenges such as red tape, congestion, poor facilities, and security threats. For example, the port of Durban in South Africa, which is the busiest port in Africa, has been struggling with delays and inefficiencies due to aging infrastructure, labor disputes, and power outages.
To overcome these obstacles, African ports need to invest more in improving their capacity, efficiency, and connectivity, as well as enhancing their cooperation and coordination with other ports in the region. This will help them to attract more business and benefit from the opportunities created by the diversion of ships from the Red Sea.
The security situation in the Red Sea remains uncertain and volatile, and it is unclear when it will be resolved. However, some experts believe that the crisis could also create an opportunity for dialogue and diplomacy among the parties involved, and pave the way for a peaceful settlement of the conflict. In the meantime, African ports can seize the chance to showcase their potential and competitiveness in the global maritime industry.
Source: Bloomberg
