Demand for ship refuelling in Africa surges as vessels reroute around the Cape of Good Hope due to Middle East conflicts, reports Reuters.
Ship refuelling companies along Africa's coast are reporting a surge in demand as more vessels divert around the Cape of Good Hope. The ongoing war in the Middle East is reshaping global shipping routes and reinforcing Africa's role as a bunkering hub, reports Reuters.
Carriers have avoided the Suez Canal and Bab el-Mandeb Strait since late 2023, when Houthi attacks began targeting Red Sea shipping. US and Israeli strikes on Iran, along with the closure of the Strait of Hormuz, have deepened this shift, raising expectations that Africa's bunkering sector will benefit from prolonged instability.
Major container lines, including Maersk, Hapag-Lloyd, and CMA CGM, confirmed this month that they are rerouting vessels around the Cape of Good Hope. While these detours extend voyage times, they allow ships to refuel at emerging African supply points, spurring investment by fuel suppliers and trading houses.
Existing bunker suppliers such as Denmark's Monjasa have reported stronger demand, while new entrants including Vitol, Bunker Partner, Peninsula, Flex Commodities, and Global Fuel Supply have announced expansion plans. 'Volumes have been positively impacted by the Red Sea security situation causing more vessels to reroute south of Africa,' said Monjasa spokesman Thorstein Andreasen.
Monjasa, which has operated in West Africa for nearly two decades and also supplies fuel at Fujairah, reported further increases in activity during the first week of the Iran war. Mr. Andreasen stated that regardless of the conflict's outcome, volatility is expected to remain high for a considerable period.
