Red Sea shipping realigns as Horn ports absorb rerouted Gulf traffic
Insurers, carriers and Horn port authorities say the rebalancing that began in 2024 is now hardening into a durable trade map.
Djibouti — Two years after Houthi strikes forced a mass reroute around the Cape of Good Hope, carriers are cementing new hub-and-spoke patterns that lean on Djibouti, Berbera and Port Sudan feeders rather than a full return through Bab el-Mandeb.
Insurance premiums for Red Sea transits have eased since spring but remain roughly three times pre-crisis levels, and terminal operators say the volume growth at Horn ports now looks structural rather than temporary.
Analysts caution that any renewed escalation off Yemen would test whether the region's landside logistics — trucking fleets, customs windows and rail links — can keep absorbing traffic that used to pass through Suez without stopping.