Red Sea reroutes global shipping

ZIM and other ocean carriers are still sending some ships around Africa’s southern tip as insecurity in the Red Sea and Gulf of Aden keeps one of the world’s main trade corridors under pressure. The detours are extending voyages, disrupting schedules and raising the risk of delays for cargo moving between Asia, Europe and East Africa, according to carrier notices, company filings and United Nations warnings. Kenya-based exporter Kakuzi said the longer route has already hurt the condition of fruit arriving in Europe. The U.N. Food and Agriculture Organization, or FAO, said this week that a prolonged disruption in the Strait of Hormuz could also feed through to fertilizer, shipping and food prices. ### Why are ships still going around the Cape of Good Hope? ZIM said in customer advisories that vessels on some services were being routed via the Cape of Good Hope because of the “highly escalated security situation” in the Red Sea and Gulf of Aden. The company’s notices described diversions on both Asia-U.S. and U.S.-Asia services, and recent network updates show Cape routings still built into some schedules. The Red Sea matters because it connects to the Suez Canal, one of the shortest sea links between Asia and Europe. When carriers avoid it, ships must sail around southern Africa instead, adding time, fuel and scheduling complexity. Trade and logistics reporting cited in recent briefings said the result has been rerouting, delayed sailings and supplier adjustments across supply chains. (zim.com) ### What does the longer route do to exporters far from the conflict? Kakuzi said in its chairman’s statement that the “effective closure” of Red Sea shipping routes has damaged arrival quality for East African avocados in Europe. The company said the only practical alternative route around the Cape adds “a further two weeks” to shipping times. Kakuzi said the rerouting pushed its average logistics time to 42 days, which it described as being at the “technical limits” of delivering sound product. (msn.com) The company said it exported 446 containers in 2024, down from 562 containers in 2023, while average pricing rose to 7.64 euros per carton from 7.54 euros. ### Why is the Strait of Hormuz now part of the same story? (kakuzi.co.ke) FAO said on May 20 that closure of the Strait of Hormuz would not be a temporary shipping problem but the start of a broader agrifood shock if it persisted. The agency said a severe global food-price crisis could emerge within six to 12 months unless trade routes stay open, humanitarian flows are protected and governments avoid export restrictions. (kakuzi.co.ke) FAO also said last month that between 20% and 45% of key agrifood inputs depend on sea passage through Hormuz. The agency’s chief economist, Máximo Torero, said a disruption lasting three months or longer would raise risks to planting decisions, fertilizer costs and food inflation later in 2026 and into 2027. (fao.org) ### Where do medicine and other essential goods fit in? PharmExec, citing a separate supply-chain report, said chokepoints in shipping are exposing vulnerabilities in the U.S. drug supply, with some medicines close to shortage if another disruption hits. That adds pharmaceuticals to a list of goods already affected by higher transport costs and longer transit times. (fao.org) Sea-Intelligence, as cited in recent coverage, said disruption around Hormuz has not yet produced the same broad schedule-reliability collapse seen after Red Sea diversions. But the comparison underscores how closely shipping companies and importers are watching both chokepoints at once. ### What should readers watch next? (msn.com) May 29 is Kakuzi’s shareholder record date ahead of a dividend payment scheduled on or about June 15, according to the company’s 2025 annual report. That filing gives investors another formal checkpoint on how the exporter describes shipping conditions and European-market performance. (msn.com) FAO said on May 20 that the timeline for broader food effects is six to 12 months if Hormuz disruption persists. Carrier advisories from companies including ZIM remain the clearest near-term signal on whether reroutings around the Cape are being extended or eased. (fao.org) (kakuzi.co.ke)