Dr. Kevin Strathy

An estimated 12% of global trade worth more than $1 trillion traverses the Red Sea each year. When Houthi rebels started attacking commercial vessels in November 2023, ocean carriers began rerouting container ships around Africa’s Cape of Good Horn rather than through the Suez Canal on voyages from Asia to Europe. That greatly increased travel time and costs. As of March of this year, shipping through the Red Sea was still down 70% from before the attacks began, according to The Economist, with many ocean carriers still avoiding the Bab el-Mandeb Strait, which separates the Red Sea from the Gulf of Aden and the Arabian Peninsula. Maritime Industry Caught in the Crosshairs Houthi rebels launched attacks on ships in the Red Sea in response to Israel’s military operations in Gaza. The Houthis attacked more than 100 cargo ships between November 2023 and January 2025. The attacks, with missiles and drones, sunk two vessels and killed four sailors. In late October 2024, a headline in gCaptain read, “Red Sea Is Now So Dangerous Even NATO Warships Are Avoiding It.” “The United States Navy continues to send warships through the Red Sea, but its mission to protect merchant ships – Operation Prosperity…

The top supply chain trends in Africa right now include ecommerce, sustainability, technology and skills development. The e-commerce boom that was fuelled by Covid-19 is showing no signs of slowing. It is predicted that in 2025, e-commerce transactions in South Africa will grow 150% to R225 billion. While African consumers are clearly sold on the speed and convenience of online shopping, they are also increasingly recognising that there is an environmental price to be paid, and they are demanding greener e-commerce supply chains. African businesses also recognise that to compete on the global stage, and for Africa to rise as the supply chain powerhouse that many predict it can be, they must align with global environmental standards. Integrating sustainability into supply chain and logistics is therefore a growing imperative in Africa. African companies are investing in technologies like electric vehicles, renewable energy sources and advanced data analytics to measure, manage and minimise their environmental impact. They are optimising transportation routes to have fewer vehicles on the road and to cut CO2 emissions. They are adopting circular supply chain models, to get more use out of products and move beyond the traditional “take-make-waste” approach. Takealot, which is South Africa’s largest online…