Hormuz Disruption Pushes Ethiopia Oilseed Shipping Costs Up Fourfold

Mintesinot Niggusie

The Ethiopian Pulses, Oilseeds and Spices Processors-Exporters Association (EPOSPEA) has warned that freight costs for oilseed exports have surged by three to four times following disruptions to shipping routes through the Strait of Hormuz, forcing exporters to reroute cargo via longer and more expensive sea corridors.

The association said the shift has significantly altered logistics for shipments of sesame, white beans and other oilseed products destined for markets in Europe and the United States, with exporters now relying on the Cape route around southern Africa.

Association president Edao Abdi said the disruption linked to the Middle East conflict has prevented exporters from maintaining normal shipment volumes, adding that several large companies have been holding stocks in warehouses as uncertainty persists over maritime conditions.

He said the traditional Gulf transit route, which passes through the Strait of Hormuz, had been widely used for Ethiopian exports, but current conditions have made it difficult to sustain regular trade flows.

According to the association, rerouting cargo around the Cape of Good Hope has significantly extended transit times, contributing to the sharp increase in transport costs. Edao said the additional logistics burden is affecting Ethiopia’s oilseed export sector, which depends on sesame seeds and white beans as key foreign currency earners.

The association added that continued instability in regional shipping lanes is creating operational constraints for exporters, as they adjust to longer delivery timelines and higher freight charges.