Ship detours around the Cape of Good Hope have become commonplace, prompting fuel suppliers to accelerate investment in Africa.

　　Xinhua News Agency, Beijing, March 24 - In recent years, influenced by the turmoil in the Middle East, more and more cargo ships are avoiding the Suez Canal, Bab el-Mandeb Strait, and the Strait of Hormuz, opting instead to detour around the Cape of Good Hope in Africa, leading to a rise in the volume of ship refueling business along the African coast.

　　As the status of the Cape of Good Hope route becomes increasingly important, the market expects the African ship fuel supply industry to continue benefiting, with global fuel suppliers accelerating their investment layout in Africa.

　　Reshaping Global Routes

　　In recent weeks, affected by the US-Israel-Iran conflict, shipping through the Strait of Hormuz, a global energy transport artery, has been severely obstructed, with global shipping giants avoiding this route. Denmark's Maersk Line, Germany's Hapag-Lloyd, and France's CMA CGM Group all announced this month that they have instructed their ships to detour around the Cape of Good Hope.

　　Since the outbreak of a new round of Israeli-Palestinian conflict in 2023, Yemen's Houthi forces have launched attacks on ships related to Israel in the Red Sea and Gulf of Aden, prompting shipping companies to avoid the Suez Canal and Bab el-Mandeb Strait, opting instead for the Cape of Good Hope route. The recent escalation of turmoil in the Middle East has further strengthened this route shift trend.

　　Torsten Andreasen, a spokesperson for Danish fuel supplier Monjasa, said that the deterioration of the security situation in the Red Sea in 2023 led to "more ships heading south to detour around Africa, significantly increasing (the company's) fuel supply business volume"; this business volume further surged during the first week of US and Israeli military strikes on Iran.

　　According to a Reuters report on the 23rd citing data from the Cape Town Chamber of Commerce and Industry in South Africa, as of early March, the number of ships detouring around the Cape of Good Hope surged by 112% year-on-year. Shipping companies generally believe that detouring around the Cape of Good Hope has become the new "operational norm."

　　Maersk Line executive Bhavan Vempati said: "After operating under various circumstances for nearly two years, our route arrangements can hardly be seen as temporary measures but have evolved into an adaptation to new operational realities."

　　Capturing Business Opportunities

　　Container ships and other vessels choosing to detour around the Cape of Good Hope means an increase in voyage distance by about 3,500 to 4,000 nautical miles, extending transport time by 10 to 14 days. Considering the growing demand for these ships to dock at refueling points along the African coast, global fuel suppliers are accelerating their investment layout in Africa.

　　Not only are established companies like Denmark's Monjasa seeing continuous growth in their fuel supply business in the African market, but new entrants such as the Netherlands' Vitol, the UK's Peninsula Petroleum, Denmark's Global Fuel Supply, and the UAE's Flex Commodities have also announced business expansion plans.

　　Last November, UAE-based Flex Commodities launched fuel supply operations in Walvis Bay and Lüderitz, Namibia.

　　The company's managing partner Rakesh Sharma said: "We are targeting the growing shipping volume detouring around the Cape of Good Hope and the regional offshore market, providing alternative options to traditional fuel supply points in the region." He explained that the company will initially focus on the fuel supply market in West Africa, where demand still outstrips supply, particularly in offshore areas.

　　Moses Komodatam, operations manager at Ghanaian fuel supply company Misa Energy, told Reuters that the company is expanding its supply scale to meet the growing demand in offshore areas. He expects Ghana's fuel supply volume to triple over the next decade.

　　The Mauritius Ports Authority disclosed at a meeting last March that the total fuel sales at the country's main port, Port Louis, increased from about 510,000 tons in 2023 to about 930,000 tons in 2024, nearly doubling, setting a new historical high.

　　Facing Multiple Challenges

　　Tahira Seljan, regional manager for Africa at the International Fuel Industry Association, believes that the long-term growth potential of Africa's fuel supply industry is not only related to geopolitical turmoil factors but also supported by factors such as regional trade growth, port infrastructure investment, and Africa's strategic positioning in global shipping routes.

　　However, industry insiders warn that Africa's fuel supply industry still faces multiple challenges, including piracy issues, insufficient infrastructure, and supply uncertainties caused by the blockade of the Strait of Hormuz limiting Middle Eastern fuel exports.

　　Emil Jamil, a senior analyst at the London Stock Exchange Group, said: "Affected by reduced crude oil supply and declining refinery operating rates, fuel supply at global fuel supply hubs is expected to continue tightening."

　　Misa Energy's Komodatam believes that infrastructure bottlenecks reflected in congestion at Ghana's Tema Port and high oil prices caused by tax policies remain long-term challenges facing the industry.

　　Additionally, licensing disputes, tax issues, and other management challenges also bring many uncertainties. (Yang Shuyi)