Bunkering activity in India experienced significant growth during the first seven months this year, with the total number of bunkering and ship-to-ship (STS) calls to domestic ports increasing by 64 per cent (year-on-year), a report showed on Tuesday.
The total number of bunkering and STS calls to Indian ports surpassed 6,765 compared with just 4,113 during the same period in 2023, according to S&P Global Commodities at Sea data.
This time, the monsoon has had little effect in Mumbai. Mumbai, which is one of the major bunkering hubs in the country, saw a 53 per cent rise in total bunkering and STS calls.
According to the report, attacks on shipping in the Red Sea have prompted shipowners to take longer voyages around Africa. This disruption caused a substantial increase in monsoon bunker demand at Indian ports, which is typically lower due to weather disruptions.
The growth was further fuelled by favourable pricing and consistent supply from domestic refineries since the second quarter of 2024, the report said.
During the Southwest monsoon period from June to September, certain port authorities impose restrictions on barge movement due to unfavourable weather conditions impacting anchorage supplies.
“Total Bunkering and STS calls fell to 26 per cent month-over-month to 357 in July 2024 for Gujrat-based ports,” the report noted.
Market sentiment in Kochi has remained stable, but 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 led to a decline in Kochi. Increased demand led to supply tightness in Sri Lanka, mainly impacting Colombo and Hambantota, while Trincomalee remained unaffected, the report mentioned.
“Haldia market demand remained stable, with consistent supply maintaining market stability,” the report noted.
© 2024 IANS. All rights reserved.