Exporters warn Cape Town port delays risk missing rerouted shipping gains
Updated
Updated · Bizcommunity.com · May 5
Exporters warn Cape Town port delays risk missing rerouted shipping gains
15 articles · Updated · Bizcommunity.com · May 5
At an industry engagement, EWC chair Terry Gale said Middle East tensions are sending more vessels around the Cape of Good Hope, but Cape Town is not fully benefiting.
Shipping experts Brian Ingpen and Louis Niemand said fuel supply, turnaround times, costs and handling capacity must improve to attract bunkering, repairs and other port business.
Stakeholders said upgrades including cranes, straddle carriers and a deeper basin have not delivered expected efficiency, while oil-route instability raises inflation risks for import-dependent South Africa.
As South Africa's ports falter, how are its African rivals capturing the new shipping windfall?
While tipped to lead in future marine fuels, why is South Africa already losing the LNG bunkering race?
South Africa’s Port Deficits and Regulatory Barriers Undermine Gains from 420% Surge in Cape Traffic
Overview
Starting in late 2023, repeated attacks by Houthi militants on vessels near the Suez Canal forced major shipping companies to reroute ships around the Cape of Good Hope, causing Suez traffic to collapse by 60% and Cape traffic to surge over 400%. This longer route increased voyage distances by up to 6,000 nautical miles, driving up fuel consumption, shipping costs, and emissions. While Egypt suffered a sharp revenue loss, South African ports struggled with aging infrastructure and rail failures, leading to severe congestion and operational bottlenecks. These issues caused cargo diversion to neighboring ports like Mauritius and Namibia, which capitalized on the surge through investments and regulatory ease, further eroding South Africa's market share and increasing global freight costs and inflation.