World News
Bunker Holding Sees Rising African Demand Following Red Sea Diversions
Marine fuels conglomerate Bunker Holding and sister company Global Risk Management are seeing a rise in demand at African ports as ships take longer voyages to avoid the Red Sea and Suez Canal.
Arne Lohmann Rasmussen, head of research at hedging firm Global Risk Management, noted the trend after a meeting on Wednesday with representatives from sister company Bunker Holding to discuss the situation.
Leading shipping companies are now avoiding the Red Sea after recent attacks on commercial shipping there, refraining from using Suez and taking longer routes around Africa instead.
"Our sourcing operation already reports rising demand in African ports, whereas the operations in ARA and Asia seem less impacted," Rasmussen said in a LinkedIn post on Wednesday.
"This is no surprise as the vessels are heading for Africa, passing Cape Town, and have not yet reached Europe after the long voyage south of Africa.
"The demand for bunker fuel will rise due to the longer voyage and possible higher speed."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 625.00 | 9.00 | 732.00 | 15.00 |
| Rotterdam | 577.50 | 3.50 | 739.50 | 1.00 |
| Houston | 595.00 | 0.50 | 767.00 | 4.50 |
| Fujairah | 628.50 | 4.00 | 878.50 | 11.00 |
| Global 20 Ports Average | 645.50 | 0.50 | 827.00 | 5.00 |
| Global 4 Ports Average | 606.50 | 0.50 | 779.50 | 0.50 |
| Global Average Bunker Price | 703.50 | 4.00 | 886.00 | 6.00 |
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