The ongoing conflict involving Iran has led to the closure of the Strait of Hormuz and heightened tensions in the Red Sea, fundamentally reshaping global trade routes. Logistics and maritime sources report that Africa is emerging as a central hub for container ship traffic, as shipping companies seek alternatives to the blocked waterways.
Alternative Routes to Gulf Countries
Over the past two months, the blockade has forced shipowners to establish overland corridors to deliver essential goods like food and manufactured items to Gulf nations. The Saudi port of Jeddah, located on the Red Sea, has become a key regional hub. Major shipping lines including MSC, CMA CGM, Maersk, and Cosco now dock at Jeddah after transiting the Suez Canal. From there, cargo is trucked along a desert highway to destinations such as Sharjah, Bahrain, and Kuwait, which have not received sea deliveries for two months.
However, Arthur Barillas de The, cofounder of freight forwarder Ovrsea, warns that Jeddah's port infrastructure is not equipped to handle such volumes, leading to congestion. According to Kpler Marine Traffic data, 11 container ships were docked at Jeddah on a recent Thursday, with nine waiting. The average wait time for unloading reached 36 hours, up from 17 hours the previous week.
Shipowners are also utilizing three ports outside the Strait of Hormuz: Oman's Sohar and the UAE ports of Khorfakkan and Fujairah, which are connected by land to the Emirates. The port of Aqaba in Jordan serves as a base for shipments to Baghdad and Basra in Iraq, while a Turkish corridor facilitates goods entering northern Iraq.
Why Asia-Europe Ships Avoid the Suez Canal
The rerouting of vessels around Africa predates the Iran war but is closely linked to the conflict. CyclOpe, a commodities publication, notes that the first attack on a container ship by Iran-backed Houthi militias off the Yemen coast occurred on November 19, 2023. Since then, avoiding the Red Sea via the Bab Al-Mandeb Strait has become routine. Ronan Boudet, head of container intelligence at Kpler, explains that ships now circumnavigate Africa along its eastern coast, rounding the Cape of Good Hope in South Africa before heading north to Europe and the Mediterranean.
Edouard Louis-Dreyfus, chairman of French shipping giant Louis Dreyfus Armateurs, stated, “With the current situation in the Gulf, we have put several more coins in the machine; it’s not going to get better anytime soon.” Yves Guillo, a supply chain expert at Efeso, added that 70% of the freight traffic that passed through the Red Sea in 2023 is now rerouted via the Cape of Good Hope. Data from the International Monetary Fund’s PortWatch platform shows that commercial vessel traffic via the Cape of Good Hope has more than tripled in three years, while traffic through the Bab Al-Mandeb Strait has fallen by more than half. Between March 1 and April 24 this year, an average of 20 commercial vessels rounded the Cape of Good Hope daily, compared to six in the same period in 2023. Conversely, Red Sea transits dropped from 18 per day in March-April 2023 to just five three years later.
Consequences of the Rerouting
The shift has extended transport times between Asia and Europe by an average of two weeks. Costs have risen due to 30-50% higher fuel consumption and the need for 10-20% more ships to maintain service frequency, according to Guillo. The average price to transport a standard 40-foot container on major routes increased by 14% in April compared to the same period last year, based on the Drewry freight index.
Some African ports are benefiting from increased activity. The Tanger Med Port Authority reported handling 11 million standard containers in 2025, an 8.4% rise. However, Egypt has suffered significant losses in toll revenues from the Suez Canal, a major income source. CyclOpe estimates that Egypt lost $7 billion in 2024, a drop of over 60% compared to 2023.
