Tensions in the Red Sea remain tense, as ship diversions increase pressure on African ports. The recent escalation of tensions in the Red Sea has led to many international shipping companies avoiding traditional Red Sea routes and instead opting to bypass Africa. This has resulted in an increase in pressure on African ports.
The significant increase in vessel voyages due to detours around Africa has led to a surge in demand for marine fuel oil in many ports in South Africa, Mauritius, and the Canary Islands of Spain. The price of marine fuel oil in Cape Town, South Africa, has reportedly soared by 15%. In addition, some ships on the Asia-Europe route are now needing to refuel in Singapore in advance as a precaution.
The congestion in some ports is a result of many African port infrastructures being unable to meet the sudden increase in shipping demand. The American Cargo News Network has reported that although detouring to Africa leads to a significant increase in shipping time and costs, many shipping companies are still unwilling to make diversions. However, due to continued tensions in the Red Sea and rising shipping premiums in the Middle East, more and more ships are choosing to detour around Africa, which could potentially impact the global supply chain and bring uncertainty to the economies of many countries.
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