This manoeuvre is not only reshaping global shipping patterns but is also triggering an unexpected surge in demand for bunker fuel at ports as far-flung as Mauritius, South Africa, and the Canary Islands. This ripple effect, sparked by recent attacks by Yemen’s Houthi militia and subsequent U.S. strikes, is reshaping the dynamics of the maritime industry, impacting refuelling habits, and intensifying competition among bunkering ports.
The rerouting trend, initiated by container ships and now adopted by oil tankers and dry bulk carriers, has prompted an unprecedented demand surge for bunker fuel. Ships aiming to navigate uncertainties over route changes are increasingly favouring refuelling stops at Singapore and Rotterdam, the two busiest bunkering ports known for competitive fuel prices.
As the Yemeni conflict exacerbates, attacks by Houthi militia on merchant ships in the Red Sea have intensified, leading to a notable shift in shipping routes. Hundreds of vessels opt for longer journeys around the southern tip of Africa, adding 10-14 days to their travel time to avoid the Red Sea’s potential dangers.
The increased traffic and rerouting have created significant congestion in bunkering ports around Africa, with ports in Mauritius, Gibraltar, the Canary Islands, and South Africa experiencing a sharp uptick in bunker fuel demand. Cape Town, in particular, has witnessed a 15% spike in the price of low-sulphur bunker fuel, reaching nearly $800 per metric ton since the attacks began in mid-November.
John A. Bassadone, founder and CEO of independent bunker supplier Peninsula, highlighted the strain on port infrastructure, stating, “Ships are diverting away from the Red Sea and rerouting around the coast of South and West Africa – this increased traffic has created huge congestion in bunkering ports around Africa and placed significant pressure on port infrastructure.”
While Singapore and Rotterdam are yet to witness a significant demand surge, industry experts anticipate an uptick in the coming weeks as ships look to secure fuel at competitive prices. The shift in demand is poised to impact not only bunker suppliers but also the dynamics of Mediterranean ports, with Las Palmas and Western Mediterranean ports expected to experience increased demand.
