Page 31 - LUA March-April 2025

Container shipping enters new Africa urged to

era with alliances realigning strengthen trade

lobal maritime trade rebounded in to 2032, and HMM, ONE, and Yang links and cut
G2023, and new shipping alliances Ming formed the Premier Alliance.
are emerging to tackle fresh challenges. These new groupings aim to boost logistics costs
The 2M Alliance—a decade-long reliability, sustainability, and network
partnership between Maersk and reach amid disruptions in the Red Sea, frica faces soaring logistics costs,
MSC—has ended, marking a major shift canal constraints, and geopolitical risks. Awith shipping rates in 2024 115%
in global container shipping. Maersk With schedule reliability stuck around above pre-pandemic levels—double
has now partnered with Hapag-Lloyd 50–55%, the industry is embracing those of 2023—according to UNCTAD’s
to launch the Gemini Cooperation, smarter, greener operations and new Economic Development in Africa
while MSC continues independently. structures to navigate an unpredictable Report 2024. The report stresses
OCEAN Alliance extended its pact global trade landscape. the urgent need for regional market
integration, infrastructure investment,
and diversified supply chains to
boost resilience. Poor intra-African
connectivity, high transport costs, and
non-tariff trade barriers remain key
obstacles. Landlocked countries face
logistics expenses up to 50% higher
than coastal economies. Despite FDI
dropping by 3% in 2023, intra-African
investment is growing. UNCTAD calls
for strategic infrastructure upgrades,
risk-management tools, and support
for AfCFTA implementation to
reduce dependence on global markets
and strengthen Africa’s position in
international trade.

Is Africa the next big bet for container shipping?

ith Africa’s population projected
Wto hit 2.5 billion by 2050, shipping
giants are eyeing the continent as a
major growth frontier. MSC, a leading
player on West Africa trades, has
deployed 22 of 26 vessels (15,000+
TEU) in the region, and is now
introducing 23,000+ TEU vessels on its
Asia–West Africa Express service. This
move could boost service capacity by
50%. Since mid-2022, average vessel
sizes to West Africa have surged by
50%, driven by increasing demand and
improving port connectivity—56% of
West African ports have seen rising
connectivity trends in the past 18
months. As Sub-Saharan Africa's
economic growth outpaces global
averages, the region is becoming an
increasingly strategic hub for global
container shipping.

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