South Africa misses maritime profits despite doubled shipping traffic

Maritime traffic around the southern tip of South Africa has doubled following disruptions in the Strait of Hormuz. As global shipping companies redirect vessels around the Cape of Good Hope to avoid conflict zones, the region has seen a significant increase in transit volume.

Despite the surge in traffic, South Africa is failing to capture the expected economic benefits from increased demand for bunkering, port calls, and maritime services. Major cargo and oil tankers are largely transiting South African waters without stopping at key ports such as Durban or Cape Town.

This lack of economic gain is attributed to inefficient ports, aging infrastructure, and logistical bottlenecks. The detour via the Cape of Good Hope adds approximately 8,000 kilometers and 14 days to journeys, increasing fuel costs by over one million dollars per trip compared to standard routes through the Middle East and Suez Canal.