South Korean Authorities Working to Minimise Bunker Supply Disruptions Alongside Strike

South Korea’s Ministry of Oceans and Fisheries (MOF) says authorities are working to minimise bunker supply disruptions resulting from a bunker tanker operator strike at the ports of Busan, Ulsan, and Yeosu, which have been running since midnight local time on Monday, IHS Fairplay reports.

Bunker tanker operators there are said to be demanding an increase in operating fees paid by refiners, with more than 200 of South Korea's 680 bunker tankers having gone on strike following the failure of the two sides to reach an agreement by the strike deadline.

"Firstly, through the Korea Shipowners' Association, arrangements are being made to divert ships scheduled to be fuelled in Busan, Yeosu, and Ulsan, to other ports. In addition, bunker tanker operators not participating in the strike in these ports have been asked to carry out their business in other ports for the time being," said MOF.

"We will strictly crack down on anybody who tries to stop these operators from carrying out refueling activities. In this respect, we will work closely with the Korea Shipowners' Association and the Korea Shipping Association."

MOF says that it plans to continue its work with the bunker tanker operators and the refiners in order to reach an agreement between the two parties on tanker operating fees.

While it is unclear when the strike may end, one bunker tanker operator has suggested that the strike could last until the end of the month, depending on when the oil refiners give into demands.

"The oil refiners are miserly and have refused to give us an increment. We have to go on strike each time we want an increment," said the source.

"The strike is only in ports on the southern coast, namely Busan, Ulsan, and Yeosu. Bunker tankers are still in operation in other South Korean ports so ship operators may choose to divert to those ports to be refuelled."

Busan price indications for IFO380 have been on the rise for the past two weeks, and in that time have risen $32 to hit $308.50/mt on Tuesday, according to Ship & Bunker data.