SONATRACH’s oil tankers face ‘unprecedented delays’
The UN Secretary-General Antonio Guterres warned this week that attacks on shipping in the strait risk “grave consequences for global economic stability”, with 18% of the world’s seaborne oil passing through the narrow waterway. Algerian traders relying on Hormuz for imports—including wheat, fertilizers, and machinery—are already scrambling for alternatives. The Ministry of Trade confirmed that three container ships bound for Algerian ports have been diverted to the Suez Canal, adding 10-15 days to delivery times.
Exporters scramble as freight costs explode
The Algerian Chamber of Commerce (CAC) has urged the government to negotiate bulk shipping discounts with global carriers. “We’re talking about survival for many businesses,” said Amina Benali, head of the CAC’s logistics committee. “A 15% increase in costs can wipe out an SME’s entire quarterly revenue.” Meanwhile, SONATRACH is exploring rail and pipeline alternatives to reduce Hormuz dependency, but experts warn these options are slow and costly for now.
Diaspora traders caught in the crossfire
The Algerian Diaspora Investment Agency (ADIA) has issued a red alert to its 3,000+ registered entrepreneurs, advising them to lock in contracts early and diversify suppliers. “This isn’t just a shipping crisis—it’s a liquidity crisis for diaspora businesses,” said ADIA CEO Karim Benaissa. “Many are one bad shipment away from bankruptcy.”
Government moves—too little, too late?
Meanwhile, Algerian ports in Annaba and Oran are seeing record congestion as rerouted ships pile up. The National Ports Authority (ANP) reports a 40% increase in waiting times, pushing storage fees up by 35%. “We’re at capacity,” said ANP director Mohamed Larbi. “If this continues, we’ll have to turn away vessels.”
Long-term risks: Will Algeria break free from Hormuz?
For now, entrepreneurs must act fast. Those with flexible supply chains—like e-commerce firms using air freight or local manufacturers sourcing domestically—are weathering the storm better. “The winners will be those who stop relying on Hormuz entirely,” said economist Samira Belhadj. “The question is: Can Algeria build alternatives before the next crisis hits?”
Key takeaway for entrepreneurs
Algerian businesses must diversify shipping routes immediately—exploring Mediterranean hubs like Valencia or Genoa or negotiating bulk discounts with carriers. SMEs should lock in contracts now before costs rise further, while diaspora traders should shift to air freight for high-value goods to avoid port delays. The government’s subsidies won’t last—those who adapt fastest will survive the Hormuz shock.
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