Bunker demand soars in Sri Lankan ports amid Indian supply woes

The maritime industry is facing a significant challenge as vessel reroutings to avoid the Red Sea have led to a surge in bunker demand across ports in both India and Sri Lanka.

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This surge highlights the complexities and adaptations required within the industry to navigate geopolitical disruptions effectively.

India, grappling with supply shortages, finds its ports experiencing disrupted VLSFO supplies, particularly on the west coast in ports like Kochi and Mumbai. On the other hand, Sri Lankan ports are witnessing a notable increase in activity.

S&P Global Commodity Insights reports that the demand spike, estimated to be over 30 percent in ports across both countries, is primarily attributed to longer voyages undertaken by ship owners and charters to circumvent the Red Sea region.

Despite the increased demand, price movements in the bunker fuel market have been mixed as of March 28. While 0.5 percent marine fuel oil delivered to Kochi saw a USD 20/mt increase to USD 700/mt CFR, prices in Mumbai fell to USD 698/mt, down by USD 8/mt. Similarly, in Sri Lanka, prices at Colombo were assessed at USD 700/mt, reflecting a decrease of USD 7/ mt on the week.