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2 Feb 2024

Red Sea Crisis: Ship Diversions Continue to Increase

The escalating crisis in the Red Sea and the broader Middle East has triggered a significant increase in shipping diversions around the Cape of Good Hope, leading to longer voyage transit times. The JP Morgan-owned Oil tanker Marlin Luanda was attacked this week, continuing to raise concerns of a wider conflict. Shipping analyst Omar Nokta highlights that Red Sea diversions are growing due to continuous attacks, prompting more shipping companies to avoid the region. Containerized goods are massively diverting around the Cape of Good Hope. While some anticipate significant impacts on global supply chains, Drewry takes a more measured stance. They estimate that diversions around the Cape affect about 30% of global container ship capacity, with a 30% increase in transit times.

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