Fighting disrupts shipping, threatening Africa trade

Disruptions to one of the world's most critical maritime corridors are beginning to ripple across East Africa following the escalating conflict in the Gulf region.

The disruption comes as major shipping companies avoid the Red Sea and the Suez Canal — key arteries linking trade between Asia, Europe and Africa — and instead reroute vessels around the Cape of Good Hope in southern Africa. The longer detour could add several weeks to delivery times, disrupt container circulation and raise freight charges for cargo passing through East Africa's main gateways such as the Port of Mombasa in Kenya, analysts said.

In advisories issued to customers, global carriers Maersk, CMA CGM, and Mediterranean Shipping Company said the deteriorating security situation in the Middle East had forced them to suspend sailings and redirect vessels away from traditional routes through the Red Sea and the Suez Canal.

Agayo Ogambi, chief executive officer of the Shippers Council of Eastern Africa, said the disruption comes at a critical time for exporters, particularly those dealing in perishable goods such as avocados.

"Freight time will increase as vessels reroute via the Cape of Good Hope. The Red Sea, which connects to the Mediterranean, ensures that shipments from Mombasa reach Europe within 18 to 20 days," Ogambi said.

"As a result of rerouting, it could take up to 45 days, leading to cold-chain disruptions, higher rejection rates by buyers and financial losses for exporters."

The East African Tea Trade Association has warned that the ongoing conflict could significantly disrupt Kenya's exports of tea, one of the country's most important agricultural commodities, risking the loss of up to a quarter of its market in the Middle East.

"We could lose between 20 and 25 percent of our tea market in the Middle East if the war continues," said George Ouna, managing director of the association.

Meat exports frozen

The disruptions have already hit Kenya's meat export industry, with exporters warning that hundreds of metric tons of produce could go to waste after key trade routes to the Middle East were blocked.

Waweru Kamau, production manager at Kenya's Juja International Abattoirs — a company that exports meat products to global markets — said more than 200 metric tons of meat prepared for shipment are currently stranded in cold storage facilities after shipping services were abruptly suspended.

"For all the facilities, we export between 125 and 130 tons every day, and all that goes to the Middle East. As we speak now, all the meat that was sorted is still lying in the chillers of our facilities," Kamau told local media. "We are talking about over 200 tons that have not moved because slaughterhouses have decided to let staff stay home."

He said the Middle East has long been the largest market for Kenyan meat, with the United Arab Emirates accounting for about 60 percent of exports, while other key buyers include Saudi Arabia, Oman and Kuwait.

Kamau said exporters who had expected strong sales from high demand for meat in Gulf markets are now facing mounting losses as flights to the region remain disrupted. "Carcasses that should already have landed in the Middle East have been returned to cold storage facilities, which are now filled to capacity," he said.

sharon@chinadailyafrica.com