India Sees 64% Rise in Bunkering Activities in 2024

Bunkering activities in India surged by 64% in 2024, reaching 6,765 ship-to-ship calls as opposed to 4,113 in the same period of 2023, according to S&P Global Commodities at Sea. Favorable pricing, consistent supply, and monsoon conditions contributed to this increase.

Bunkering activity in India has experienced significant growth in 2024, with the total number of bunkering and ship-to-ship calls to Indian ports increasing by 64% year-on-year through July. According to data made available by S&P Global Commodities at Sea, the total number of bunkering and ship-to-ship calls to Indian ports surpassed 6,765, compared to just 4,113 during the same period in 2023.

Bunkering, defined as the refueling of cargo vessels, is a routine activity at ports worldwide. This year, the monsoon had minimal impact in Mumbai, noted S&P Global Commodity Insights, referencing market participants' perspectives. Mumbai, a major bunkering hub in India, saw a 53% rise in total bunkering and ship-to-ship calls, the data showed.

'Attacks on shipping in the Red Sea have prompted shipowners to take longer voyages around Africa. This disruption caused a substantial increase in monsoon bunker demand at Indian ports, which is usually lower due to weather disruptions,' stated S&P Global Commodity Insights in their commentary on bunker activity in India.

The report further indicated that the growth was driven by favorable pricing and consistent supply from domestic refineries since Q2 2024. 'During the Southwest monsoon period from June to September, certain port authorities impose restrictions on barge movement due to adverse weather conditions impacting anchorage supplies.'

Total bunkering and ship-to-ship calls fell by 26% month-over-month to 357 in July 2024 for Gujarat-based ports, including Kandla, Sikka, Vadinar Terminal, Port Okha, and others.

Among these ports, the Haldia market saw stable demand with consistent supply ensuring market stability. While Kochi port's demand remained stable, some suppliers faced product shortages in July, reducing their monthly volumes. However, suppliers with available product observed increased volumes as customers shifted to them, the commentary added.

A rise in bunker demand at Colombo led to a decline in Kochi, as per S&P Global Commodity Insights. Increased demand caused supply tightness in Sri Lanka, mainly affecting Colombo and Hambantota, whereas Trincomalee remained unaffected.