Maersk to end direct shipping route between South Africa and the US

Aug 17, 2025 North America views: 101

Danish shipping giant Maersk has announced plans to halt its direct cargo shipping route between South Africa and the United States,effective October 1,2025. The decision is expected to significantly impact South African exporters,who will now face longer transit times and higher logistics costs.

According to a company notice sent to clients earlier this week,Maersk will reroute shipments via European transshipment hubs,replacing the current four-to-six-week direct service with routes that could extend to six-to-eight weeks or more,depending on port congestion.

The company cited operational restructuring and global supply chain realignments as the primary reasons for the change. However,the move comes amid rising diplomatic tensions between Pretoria and Washington.

The US government recently signaled a potential review of South Africa’s eligibility under the African Growth and Opportunity Act (AGOA),a trade agreement that provides duty-free access to U.S. markets for thousands of African products

Industry experts warn that the shift will have immediate financial consequences. Exporters will incur additional costs due to fuel,handling,and transshipment fees,which are estimated at $200–$250 per container. Maersk’s peak season surcharge of up to $1,000 for a 40-foot container will further inflate expenses. Freight rates are projected to rise by 20 to 40 percent

South Africa,the continent’s largest economy,relies heavily on efficient maritime logistics to maintain its export competitiveness. The loss of one of only two direct shipping links to the U.S. is expected to compound existing pressures on businesses already grappling with inflation,currency volatility,and trade policy uncertainty.

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