The U.S. Energy Information Administration (EIA) reported a significant 47% increase in global crude oil and fuel shipments taking the Cape of Good Hope route between Asia, the Middle East, and the West since the onset of attacks on vessels in the Red Sea.
This shift highlights the maritime industry’s strategic pivot to avoid Houthi attacks in Yemen, despite the longer and more costly voyage.
Previously, approximately 12% of the world’s shipping traffic traversed the Red Sea and the Suez Canal.
However, rising threats have forced ships to opt for the safer but longer southern route around Africa, thereby escalating shipping costs.
Data from Vortexa, cited by the EIA, revealed that in the first five months of 2024, about 8.7 million barrels per day of crude oil and refined products were transported via the Cape of Good Hope.
This is a notable increase from the average of 5.9 million barrels per day in 2023.
Key contributors to this shift include Saudi Arabia and Iraq, which have redirected more crude oil to Europe through the Cape of Good Hope, accounting for 15% of the overall increase.
Additionally, refiners in Asia and the Middle East have boosted their exports of refined products to Europe, rerouting shipments around the southern tip of Africa, representing 29% of the surge.
The EIA also noted that the United States has received more crude oil and refined products from the Middle East and Asia, while simultaneously increasing its product shipments to Asia via the Cape of Good Hope.
This rerouting has led to a one-third rise in U.S. trade volume, or slightly over 600,000 barrels per day, using this route.
This strategic rerouting underscores the maritime industry’s adaptability in response to geopolitical threats, ensuring the continuity of global energy supplies despite increased costs and extended travel times.
