Freight Rates Jump, New Obstacle for Saharan Africa Bitumen Market

Having faced with other container shipping rates hit top high, the cost of importing bitumen to most of African countries increased significantly in recent weeks. Many African bitumen consumers like road or construction contractors depended on imported bitumen supplies badly affected by this price hike in many African countries specially in East Africa where used to import drummed bitumen from the Middle East for their paving projects.

By new rates, freight costs exceeding “50% on routes to East, West, and Southern Africa compared to mid-July levels” according to Argus data. While bitumen market is sluggish in recent weeks, this new obstacle seems to get the region bitumen market even stopped to export to Saharan Africa.

Shortage of container ships even got worse as vessels compulsion to take longer route around the Cape of Good Hope to avoid potential attacks by Yemen’s Houthi rebels in the Red Sea. This challenge seems continuing which cause longer voyages so more bunker fuel consumption and congestion. Container shortages and delays also reported worsening in some points like Jebel Ali (UAE) where the hub of many feeders in the region.

Now international shipping lines have significantly increased their rates for voyages from Jebel Ali to Mombasa, Kenya, now charging $3,800 per 20-foot container (190$ /ton) while it’s been 135$ per ton previously. The same story with rates to Dar es Salaam, Tanzania, which surge sharply from 140$/ton to 210$/ton.