Red Sea Crisis Impact On African Ports

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The ongoing shipping disruptions in the Red Sea and Suez Canal have significantly affected operations at African ports, as reported by S&P Global Market Intelligence, says an article published on port technology website.

Summary

  • The ongoing shipping disruptions in the Red Sea and Suez Canal have impacted operations at African ports.
  • The Port of Aden in Yemen and Port Said in Egypt have experienced decreased vessel calls due to disruptions in commerce.
  • Despite improved business at key African container ports in Q4 2023, increased vessel calls and container movements have strained terminal and port infrastructure.
  • Many African ports struggled to keep up with rising demands, leading to longer ship wait times and decreased productivity.
  • Tanger-Med and Mombasa managed to improve productivity despite regional challenges.
  • Import and export container dwell times have significantly increased, with import dwell time rising by nearly 10% to 5.4 days and export dwell time jumping by almost 90% to over 8.5 days.

Impact On Key Ports

The Port of Aden in Yemen and Port Said in Egypt, both crucial ports in the region, have experienced a decrease in vessel calls in the first quarter of the year due to disruptions in commerce.

Increased Demand Vs. Infrastructure

Despite improved business at key African container ports in Q4 2023, the surge in vessel calls and container movements has strained the region’s terminal and port infrastructure.

Challenges In Port Productivity

While container capacity increased, many African ports struggled to keep up with the rising demands, leading to longer ship wait times and decreased ocean and yard productivity.

Exceptions And Successes

Ports like Tanger-Med and Mombasa managed to improve productivity despite the challenges faced by others in the region.

Dwell Time Issues

Import and export container dwell times have seen significant increases, with import dwell time rising by nearly 10% to 5.4 days and export dwell time jumping by almost 90% to over 8.5 days.

Continued Challenges

The World Bank-S&P Global Market Intelligence Container Port Performance Index highlights that almost one-third of the bottom 50 ports are in Sub-Saharan Africa. Inefficient port operations continue to hinder the continent’s trade sector development and its aspirations for deeper integration into international supply chains.

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Source: port technology