Indian ports reported a 64 per cent year-on-year (Y-o-Y) increase in the total number of bunkering and ship-to-ship (STS) calls during the first seven months of 2024, according to S&P Global Commodity Insights. The gains are attributed to the attacks on ships in the Red Sea region.
S&P said the Red Sea crisis has prompted shipowners to choose longer routes around Africa, resulting in a substantial increase in monsoon bunker demand at Indian ports. The crisis emerged in October 2023 and has persisted since then.
The total number of bunkering and STS calls to Indian ports was more than 6,765, compared with 4,113 during the same period in 2023, according to the report.
The growth, which usually slows down due to weather disruptions during the season, was further fuelled by favourable pricing and consistent supply from domestic refineries since the second quarter of 2024, as stated in the commentary by S&P Global Commodity Insights.
According to CAS data, Mumbai, one of the major bunkering hubs in the country, saw a 53 per cent rise in total bunkering and STS calls. Market participants stated that the monsoon had little effect in Mumbai this time, the report said.
Platts, part of Commodity Insights, assessed 0.5 per cent marine fuel oil delivered to Mumbai at $641/tonne CFR on August 8, down $4/tonne week-on-week, while in Kochi, prices were at $647/tonne, up $4/tonne.
Decline in bunkering and STS calls at Gujarat-based ports; Haldia, Kochi report stable market demand
CAS data also showed that total bunkering and STS calls fell by 26 per cent month-on-month (M-o-M) to 357 in July 2024 for Gujarat-based ports. The fall was attributed to the imposition of seasonal restrictions by certain port authorities on barge movement due to unfavourable weather conditions caused by the southwest monsoon, which impacts anchorage supplies.
Meanwhile, the commentary further noted that Haldia market demand remained stable with consistent supply. Uncertainty about refinery maintenance has left market participants unsure about its impact on August demand, with some predicting a product shortage and others expecting market stability.
The Kochi market, too, reported stability. Some suppliers experienced product shortages in July, leading to a decrease in their monthly volumes. However, suppliers who had the product saw increased volumes as customers shifted to them.
An increase in bunker demand at Colombo also led to a decline in Kochi. According to the commentary, Platts assessed 0.5 per cent marine fuel oil delivered to Kochi at $647/tonne CFR on August 7, a $23/tonne discount to marine fuel 0.5 per cent bunker delivered to Colombo.
First Published: Aug 13 2024 | 5:03 PM IST
