IBIA Sees Red Sea Diversions Giving 20% Boost to Bunker Sales in Some Markets

by Ship & Bunker News Team
Wednesday February 28, 2024

Ships diverting away from the Red Sea to avoid attacks may be adding as much as 20% to marine fuel sales volumes in some markets, according to industry body IBIA.

The organisation provided an update on the impact of the Red Sea situation on markets in Africa in a statement on its website last week.

IBIA's sources have reported an estimated increase in sales of 15-20% in some markets, with VLSFO and LSMGO sales seeing the strongest gains.

"Some stakeholders have noted a significant potential for increased demand, while others have observed shifts in demand patterns, particularly towards Mediterranean ports, although some of those ports, such as Port Said, have seen a reduction," IBIA said.

"The demand for bunkers is expected to increase further, with some entities experiencing solid trends and engaging in medium-term contracts.

"The crisis's continuation is likely to sustain this demand increase, with infrastructure improvements such as floating storages and barges potentially solidifying the demand in South and West Africa."