Hormuz Rerouting Doubles Cape Traffic Without Delivering a Windfall
Over the past seven months, shipping traffic through the Strait of Hormuz has dwindled to a trickle, with Iran effectively closing the critical maritime chokepoint ever since the U.S. and Israel launched attacks against it. Consequently, major global shipping companies rerouted their vessels via Sou
Source: OilPrice.com
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DW NOTE
The Cape of Good Hope is carrying double the tanker traffic because Hormuz is closed, yet freight rates haven't surged. That tells you two things: overcapacity in the global tanker fleet was worse than the industry admitted, and Chinese demand destruction is real enough that even a 10,000-mile detour can't tighten the market.