Global Shipping Drops Suez Canal, Goes Around Africa in Record Traffic

By Al Mayadeen English

Source: Financial Times

1 May 2026 11:11

A growing number of international shipping companies are bypassing the Suez Canal and the Red Sea, opting instead for the longer passage around southern Africa.

Tanker traffic near the Cape of Good Hope hit an all-time high of 24 million deadweight tonnes during the week of April 1, the Financial Times reported, citing new data. Industry analysts describe this as evidence of a fundamental and lasting transformation in global shipping patterns.

The detour adds a minimum of two weeks to voyages connecting Asia with Europe. Heightened security concerns following recent military exchanges involving Iran, the United States, and "Israel" have driven the shift, as shipping lines prioritize safety over speed and cost.

Red Sea route had already been under pressure since 2023

Shipping through the Suez Canal and the Red Sea has faced significant disruptions since 2023, when Yemeni Armed Forces began targeting commercial vessels in response to the genocide in Gaza. A ceasefire last October briefly encouraged some operators to reconsider the shorter passage, but renewed hostilities in the Gulf have reversed that trend entirely.

Major shipping firms now indicate that a return to the Suez route is unlikely in the near future. Rolf Habben Jansen, chief executive of Hapag-Lloyd, said the company made "first cautious attempts" to resume Red Sea transits but halted those plans as regional instability worsened.

"If you look at everything that is happening in the region, that certainly will not accelerate the return to Suez," he warned.

Freight costs rise as ports see record activity

The shift has driven up container rates along the Cape route. According to logistics platform Freightos, container rates along the longer Cape route rose from about $2,500 per forty-foot equivalent unit (FEU) to approximately $3,000 in mid-March, before easing slightly to around $2,700 per FEU in recent weeks.

Beyond pricing, the rerouting has significantly boosted port activity across southern Africa. A report by Project44 indicates that container arrivals at key regional hubs, including Durban, Cape Town, and Walvis Bay, increased by 21 percent since late February. The week of April 6 recorded a 71 percent spike above pre-war averages.

Walvis Bay has emerged as a particular beneficiary. Shipping executives point to its deep-water harbour and expanded fuel supply capacity as critical advantages. Ian Rosario, operations director for South Africa at Mediterranean Shipping Company, noted that the port is "thriving", partly because it can supply multiple grades of marine fuel.

Other ports have also seen rising demand, though infrastructure gaps remain a challenge. South Africa's Port Elizabeth has experienced a near doubling of bunker fuel traffic compared with early 2024, while Port Louis Harbour reported a 42 percent increase in refuelling activity during March, handling 294 vessels.

Customers prioritize reliability over speed

Despite higher fuel costs and longer transit times associated with the Cape route, shipping companies say their customers now prioritize supply chain stability over rapid delivery. Industry leaders warn that unless security conditions in the Red Sea improve dramatically, the Africa diversion may become a permanent feature of global trade.

The Suez Canal had already been losing traffic since the Yemeni Armed Forces campaign began in late 2023. A brief recovery following the October ceasefire proved short-lived, as the US-Israeli war on Iran triggered retaliatory operations and caused the closure of the Strait of Hormuz, further disrupting energy shipments and container flows.

Iran has repeatedly stated that its actions are defensive, responding to unprovoked US-Israeli aggression. Tehran has also emphasized that its control over the Strait of Hormuz is a legitimate measure to protect national security, and that responsibility for the global economic fallout lies with the aggressors.