EMEA News
Rotterdam 2016 Bunker Sales Volume Drop Due to Pricing and Tough Market, Say Industry Sources
Some industry sources suggest that Rotterdam's decline in bunker sales volumes during the 2016 year can be attributed to price competition and the ongoing difficulties in the shipping market, Platts reports.
As Ship & Bunker reported earlier this week, the Port of Rotterdam said bunker sales at the port during the 2016 year fell to 10.1 million m3 from 10.6 million m3 the previous year, adding: "there is no reason known for this decline."
One Rotterdam-based trader recently told Platts: "it's hard to pin down why the annual numbers are down.
"It should be clearer towards the end of the second quarter as to why this is happening. Perhaps Rotterdam has been losing volume to other ports."
While lethargic European economic growth and a fragile shipping industry have been cited as reasons for the downturn in sales at Rotterdam, with Gibraltar having recorded a 2 percent sales growth in 2016, many are trying to identify other possible reasons for Rotterdam's sales decline.
"It has to do with price, and the poor performance of the shipping segments," said a Rotterdam-based buyer, suggesting that some demand could have been lost to Panama.
"The demand factor is at an all-time low," said the buyer of Rotterdam, noting that shrinking price discount levels may have driven some business to Panama, where bunker sales volumes grew by 8 percent in 2016.
Rotterdam is noted to depend on fuel oil received from the Baltic for its low bunker prices, but with a changing Russian tax system causing a decline in that country's export levels, Rotterdam's prices are now subject to upward pressure.
Another suggested reason for Rotterdam's declining sales is a growing cargo throughput at the port, which is causing congestion and poor barge availability at the port, driving some bunkering business away from Rotterdam to Antwerp.
