Recent reports indicate a surge in bunkering activity at select African refuelling hubs, driven by vessels diverting from the Red Sea and seeking alternate routes around the Cape of Good Hope.
While South Africa, a regional leader, faces supply-chain constraints, neighbouring Mozambique is poised for major investment in its Maputo Port.
Danish marine fuel firm Monjasa has strategically positioned additional barge capacity along the West African coast, particularly in Namibia, to meet rising demand. Similarly, TFG Marine has observed significant increases in refuelling activity at offshore sites in Namibia, Mozambique, and Mauritius, amidst congestion and limited fuel stocks at South Africa’s main ports.
Analysts anticipate vessels diverting to African routes will likely refuel once en route, leading to increased demand at bunker supply hubs such as Singapore and Rotterdam. Offshore locations have proven more agile in responding to sudden trade flow changes, efficiently meeting demand during periods of congestion.
Economically, Cape Town has witnessed a surge in very-low sulphur fuel oil (VLSFO) prices, reaching over $80 per tonne by late January, due to supply shortages and port congestion issues in key bunkering sites like Durban and Algoa Bay.
Meanwhile, the approved $2 billion port expansion project in Maputo signals a potential shift in African marine fuel dynamics. Led by DP World and other stakeholders, the expansion aims to enhance capacity and infrastructure, positioning Maputo as a future alternative for bunker demand.
With the International Maritime Organisation implementing stricter global sulphur emissions standards for ships, analysts anticipate continued growth in African bunkering. However, resolving current operational bottlenecks will be crucial for South Africa to maintain its market lead in the long term.
Further Africa
