Asia/Pacific News
Busan Bunker Barge Strike Could Mean Supply Shortage, Bunker Price Hike
South Korea traders warn that higher than usual bunker prices may be accompanied by supply issues if a strike led by bunker barge operators occurs at the southeastern port of Busan, Platts reports.
The operators are said to be in a dispute with South Korean refiners over operating fees paid to barge companies that they claim are too low, and an October 1 meeting between the concerned parties to reach a settlement has proved inconclusive.
Reportedly, barge operators at Busan are urging colleagues at other ports to consider striking as well.
An unnamed trader told Platts that "refiners are offering bunker fuel cargoes but it's all subject to barge strikes ... they don't want to offer low prices because they know there's a high chance of the strike happening, so they are just offering at high prices."
Another trader said that several refiners will not supply bunker at Busan between October 5 and 10.
If the strike goes ahead, it may result in congestion and supply shortages as "vessels that need to take delivery of bunker fuel may all go to the Yosu port area, so bunkering inquiries will be concentrated there."
Further talks between the barge operators and refiners were scheduled over the weekend.
Barge availability became a problem when bunker fuel barge owners went on strike at South Korea's Yeosu port in June of 2014.
