ENGINE: Algoa Bay closure spurs surge in bunker calls at nearby ports

Ships sailing by Algoa Bay are forced to seek bunkers elsewhere as bunker operations remain suspended.

With Algoa Bay temporarily inaccessible for bunkering, ships being diverted to alternative ports in its vicinity to bunker.

Bunker demand has increased in Mozambique’s Nacala and Maputo ports as bunkering remains completely shut off in Algoa Bay, a source says. Ships are also seeking bunkers at other South African ports such as Durban and Cape Town.

VLSFO and LSMGO availability has remained steady so far in Durban, but availability could tighten there going forward because of the Algoa Bay crisis, a source says.

Some bunker buyers are still booking stems for deliveries in Algoa Bay in late October. They anticipate that bunkering could resume by that time, a port agent tells ENGINE. As of now, both onshore and offshore bunkering remain suspended, the port agent adds.

The reputational damage from the South African authority crackdowns could be immense. Even if the current issue is resolved and bunker operations resume, there may be lingering perceptions of Algoa Bay as a problematic location for bunkering, another source argues.

“Once bitten, twice shy,” it says.

Algoa Bay bunkering has faced hightened scrutiny after the South African Revenue Service (SARS) detained bunker barges over import duty disputes earlier this month.

By Nithin Chandran

Manifold Times previously reported South African Revenue Service (SARS) issuing a media statement concerning the detention of five vessels involved in the fuel bunkering supply chain. 

Related: South African Revenue Service issues media statement on detention of bunkering vessels
Related: ENGINE: Algoa Bay bunkering at a standstill as authority detains barges – sources

Source: ENGINE
Photo credit: MarineTraffic / Bernd Bölscher
Published: 2 October, 2023