To benefit from the closing of the Strait of Hormuz, Port-Louis must improve its performance relative to competitors in East and South Africa

Geopolitical tensions in the Gulf region, encompassing Houthi activity in the Red Sea and Iran’s effective closure of the Strait of Hormuz, have compelled major shipping lines to reroute via the Cape of Good Hope, extending voyage durations by approximately two weeks on key Asia-Europe and Asia-North America trades. This increases trade costs (an extra day at sea is equivalent to a 1%-2% import tariff at destination) and fuel consumption driving shippers to seek reliable intermediate stops. [...]