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Rerouting after Hormuz slowdown doubles Cape traffic without boosting gains
Shipping traffic around South Africa’s Cape of Good Hope has risen since Hormuz tightened, but the article says the detour has not translated into a windfall for shippers.
Oil prices and shipping conditions are being reshaped as traffic through the Strait of Hormuz has fallen sharply over the past seven months, with Iran effectively limiting the chokepoint after U.S. and Israel attacks, according to OilPrice.
With the reroute in place, major global shipping companies have been sending vessels via South Africa’s Cape of Good Hope, and the article says traffic around the southern tip of Africa has doubled.
OilPrice links the shift to the ongoing reduction of Hormuz-linked maritime routes, describing a situation where rerouting increases movement in other lanes while not delivering a corresponding windfall.