Ships are now routinely navigating around the Cape of Good Hope, and fuel suppliers are speeding up their investments in Africa.

Affected by the US-Iran conflict, the transportation in the Strait of Hormuz has been severely disrupted. Global shipping giants have been avoiding this route and instructing their vessels to detour around the Cape of Good Hope in Africa. As a result, the volume of refueling operations for ships along the African coast has increased, leading to market expectations of continued benefits for related industries. Global fuel suppliers are accelerating their investment layout in Africa. According to data from the Cape Town Chamber of Commerce cited by Reuters on the 23rd, the number of vessels detouring around the Cape of Good Hope has increased by 112% compared to the same period last year. Since the outbreak of the new round of Israel-Palestine conflict in 2023, the tense situation in the Red Sea has forced shipping companies to avoid the Suez Canal and the Strait of Hormuz, and instead choose the route around the Cape of Good Hope. Shipping companies generally believe that detouring around the Cape of Good Hope has become the new "operational norm." For container ships and other vessels choosing to detour around the Cape of Good Hope, it means an increase of about 3500 to 4000 nautical miles in journey distance and a delay of 10 to 14 days in transportation time. Considering the continued strong demand for refueling at supply points along the African coast, global fuel suppliers are accelerating their investment layout in Africa. Danish fuel supplier Monjasa stated that after the deterioration of the security situation in the Red Sea in 2023, the company's fuel supply business volume significantly increased, with further growth in the first week of the US-Iran conflict. Companies such as Vitol in the Netherlands, Peninsula Petroleum in the UK, and UAE-based Freights Commodity Corp have announced plans for business expansion. Ghanaian fuel supplier Misa Energy expects that the fuel supply volume in Ghana will triple in the next ten years. However, industry experts caution that the African fuel supply industry still faces multiple challenges, including piracy, inadequate infrastructure, and supply uncertainties caused by the blockade of the Strait of Hormuz limiting Middle Eastern fuel exports.