Diverted Red Sea ships face congestion at African ports


(Corrects typo to Cape Town)

by Wendell Roelf

CAPE TOWN, Dec 22 (Reuters) – Shipping companies passing through the Cape of Good Hope to avoid attacks by Houthi rebels in the Red Sea are facing refueling and supply difficulties in African ports due to administrative constraints , congestion and lack of equipment, according to companies and analysts.

Despite an extended journey time, hundreds of large ships have decided to go around the southern tip of Africa rather than passing through the Red Sea in order to escape repeated attacks by Yemen’s Houthis.

These have disrupted international trade through the Suez Canal, the shortest shipping route between Europe and Asia, through which around a sixth of global traffic passes.

According to a World Bank index for the year 2022 published in May, South Africa’s main ports, including Durban, one of the largest on the continent in terms of container volumes handled, as well as the ports of Cap and Ngqura are among the worst performers in the world.

“Durban, even in its current state, remains the most advanced and largest port in Africa, and ships diverting along the continent therefore have very limited choice of where to dock and restock,” Alessio Lencioni, a logistics and supply chain consultant, told Reuters.

Other major deep-water African ports along the Cape route, such as Mombasa in Kenya and Dar es Salaam in Tanzania, lack the equipment to handle the traffic expected over the next two weeks, says Alessio Lencioni.

Shipping group Maersk said ships rounding the Cape will try, where possible, to refuel at their point of origin or destination.

“Should en-route refueling prove necessary, this will be decided on a case-by-case basis, with Walvis Bay (Namibia) or Port Louis (Mauritius) being the best options,” said its spokesperson.

CAPE OF STORMS

Sailing in difficult weather conditions with rough seas, common at the “Cape of Storms” as well as in the Mozambique Channel exposed to cyclones, ships risk consuming their fuel more quickly, which makes refueling services – or bunkering – crucial, emphasize the shipping companies.

“In Singapore, we are delivering larger bunker volumes to ships which will now be making longer voyages,” said a spokesperson for TFG Marine, a subsidiary of energy trader Trafigura.

Administrative constraints constitute another difficulty. In September, South African tax authorities arrested five supply vessels in Algoa Bay on suspicion of violating the Customs and Excise Act. BP, Trafigura and Mercuria have all been suspended pending audits.

Since the launch of South Africa’s first offshore ship-to-ship bunkering service in Algoa Bay in 2016, fuel volumes and the number of vessels using the service have increased significantly.

A spokesperson for Heron Marine, TFG Marine’s subsidiary operating in Algoa Bay, said the company works with customers to meet their bunkering needs. Mercuria and BP did not immediately respond to requests for clarification.

To meet projected marine fuel needs, imports are expected to reach around 230 kilotons in December, analysts say.

“South Africa expects a record level of fuel oil imports in December, due to demand for supplies linked to the crisis (provoked by) the Houthis,” said Younes Azzouzi, market analyst at Kpler , data and analytics specialist. (with the contribution of Jonathan Saul in London, French version Dagmarah Mackos, edited by Blandine Hénault)

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