EMEA News
Bunker Suppliers See 'Crazy Demand' in Mauritius as Ships Avoid Red Sea
Bunker suppliers in Mauritius are seeing a sharp rise in demand as ships reroute around Africa to avoid attacks in the Red Sea.
Port Louis is seeing one of the most significant demand boosts among African ports since the change in voyage routes over the past two weeks, a local source told Ship & Bunker.
"The Suez situation shifted all the volumes to Africa in general, and Port Louis specifically has seen crazy demand from all the liners," the source said.
Mauritius had already seen a boost to demand since the shutdown of supply at South Africa's Algoa Bay in September.
VLSFO prices at Port Louis have risen by $38/mt since December 15, according to Ship & Bunker prices. The G20-VLSFO Index of prices across 20 leading bunkering locations climbed by $19/mt over the same period.
Bunker suppliers across Africa can expect to see higher sales as several leading shipping companies reroute their vessels in that direction, rather than using the Suez Canal, after the recent spate of attacks on commercial shipping by Yemen's Houthi movement.
Global supplier and trading firm Monjasa has said it has already seen an increase in sales in West Africa.
Some companies are starting to return to using Suez -- AP Moller-Maersk and CMA CGM being the largest examples so far -- but the situation remains fluid. These two companies have reportedly been receiving military escorts for their voyages through the Red Sea, and it is unclear whether assistance of this kind can be applied much more widely to all ships passing through the area.
