Glander sees bunker demand spike in East/West Africa, Arabian Gulf due to Red Sea crisis
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Glander International Bunkering on Friday (12 January) gave an update on the effects of bunkering due to the Red Sea crisis.
As the wave of attacks on merchant ships continue in the Red Sea, the firm said some 35,000 vessels that sail through the region annually could be affected.
“With the disruption of key trade route linking Europe and North America with Asia through the Suez Canal, exporters and shippers are increasingly looking to find alternative ocean transportation routes,” it said.
Under an extended threat, ship- and freight forwarders face disruption and freight cost rises. Moving goods around Africa can add as much as 30 days to a voyage.
“As a result, we are seeing an increase in bunker demand in East/West Africa and the Arabian Gulf. This is primarily in Durban, Port Louis, Canary Islands, Salalah, and Fujairah,” the firm added.
“Effects include longer lead times as barge schedules are booked up and cargo/supplier avails become tighter.”
“Ultimately, this leads to higher premiums which could disrupt bunker plans.”
The firm said its team is actively monitoring arbitrage opportunities and operational schedules for clients.
Photo credit: Glander International Bunkering
Published: 15 January, 2024
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