Red Sea diversions challenge African bunker supply market

Chamber of Shipping > Blog > News > International > Red Sea diversions challenge African bunker supply market

Strong bunkering demand in African ports has led to increased marine fuel prices, driven by containerships diverting from the Red Sea to the longer Cape of Good Hope route. This surge in demand, particularly in locations like Namibia and Togo, is straining fuel supply availability in Africa, where many ports rely on imported fuel oil due to limited refining capacity. South Africa, entirely dependent on imports for bunker fuel, has faced disruptions due to a tax dispute in Algoa Bay, a key supply location. This situation has caused fuel prices in Durban to rise significantly. Despite these challenges, West Africa remains an attractive refuelling option, and the overall increase in demand could boost global bunkering demand by 2%.

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