ENGINE: Suppliers and authorities still working to resolve Algoa Bay bunkering crisis – sources

Offshore bunkering in Algoa Bay has been on hold since September, when the South African Revenue Service (SARS) detained bunker barges for customs duty irregularities.

It is still unclear how soon offshore bunkering could resume in Algoa Bay, one port agent told ENGINE. At this point, bunker suppliers and authorities are still negotiating to resolve the offshore bunkering crisis, the port agent added.

SARS has been conducting investigations into bunker compliance, and the bunker vessel detentions are part of the ongoing investigation, it said in a statement released in September. When contacted, the authority was unable to provide any new updates on the negotiations.

“Talks are continuing but [there is] no clarity as yet when operations will resume,” another port agent said.

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

Bunker demand has increased in Mozambique’s Nacala and Maputo. HSFO and LSMGO availability is normal in Mozambique’s Nacala port, a source says. VLSFO supply is very tight in the port. The earliest delivery date with a supplier there is 17 November.

On the other hand, LSMGO availability is normal in Maputo, but barge availability has tightened there. VLSFO is also tight in Maputo, where a supplier can offer the earliest delivery on 10 November.

By Nithin Chandran

Related: ENGINE: Algoa Bay closure spurs surge in bunker calls at nearby ports
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: 6 November 2023