INSUBCONTINENT EXCLUSIVE:
In the wake of vessel re-routings aimed at avoiding the Red Sea, bunker demand across ports in both India and Sri Lanka has witnessed a
significant surge, highlighting a growing challenge for the maritime industry
While India contends with supply shortages, Sri Lankan ports are experiencing a notable increase in activity.According to S-P Global
Commodity Insights, the demand spike, estimated to be over 30 per cent in ports across India and Sri Lanka, has been primarily attributed to
longer voyages undertaken by ship owners and charters to circumvent the Red Sea region
supplies, exacerbating the situation.Despite the increased demand, price movements in the bunker fuel market have been mixed as of March 28
Platts, a division of S-P Global Commodity Insights, reported that while 0.5 per cent marine fuel oil delivered to Kochi saw a USD 20/mt
increase to USD 700/mt CFR, prices in Mumbai fell to USD 698/mt, down by USD 8/mt
Similarly, in Sri Lanka, prices at Colombo were assessed at USD 700/mt, reflecting a decrease of USD 7/mt on the week.A trader based in
Mumbai, Kochi and Gujrat ports
Long haul vessels are calling more often now
ports like Colombo and Hambantota
A Bunkerworld survey revealed a significant surge in bunker sales volume at Colombo, reaching 40,000 mt/month, up from an average of 30,000
mt/month prior to the disruptions in the Red Sea region.Despite the increased demand, Sri Lankan ports remain well supplied through
consistent inflows from Fujairah and Singapore
clients do not want to take any risk
In response to supply shortages in India, traders have redirected their inquiries to Sri Lanka, further driving up demand in the region.A
Tightness across Indian markets during the first few weeks also helped us to capture the demand
BPCL does not buy spot purchases, we might have been getting sweet crude cargoes from Mediterranean, but the crisis has disrupted cargo
production comes from only three refineries, out of which HPCL and BPCL have lowered output.In Haldia, while demand remains high, supply
falls short of requirements due to maintenance issues at the local refinery
The top suppliers of bunker fuels in the Indian market, including IOCL, BPCL, and HPCL, continue to navigate challenges to meet the
escalating demand.Source: ANI--Agencies
