Global shipping could reroute around South Africa for the rest of 2026, expert warns
March 23, 2026 10:19 pm
Shipping companies may avoid passing through the Middle East and opt for longer routes around the Cape of Good Hope in South Africa, following security concerns in the region, an expert said.
Transiting through the Strait of Hormuz is “completely off the charts for the rest of 2026” due to the “uncertainty and security situation in the region,” said Peter Sand, chief analyst at Xeneta, an ocean and air freight data firm.
He told CNN’s Becky Anderson that vessels are likely to steer clear of other major chokepoints including Bab al-Mandab strait located between Yemen and the horn of Africa – where Iran backed Houthi rebels have disrupted shipping - and the Suez Canal in Egypt, which merges with the Red Sea.
“We have seen for a number of years the unrest in the wider region… [with] Houthi rebels closing the Bab al-Mandab Strait… to cause more significant disruption than what we see right now,” he said.
Sand added, “Maybe for another year, we’re going to see full rerouting of global networks around the Cape of Good Hope instead of going through the shortcut, the Suez Canal.”
Source: CNN
- Agencies
