China’s port congestion is prompting more vessels to refuel at the country’s ports as the intensifying Covid-19 outbreak forces the reconfiguration of shipping routes.
Bloomberg reported that China had supplied 4.9 million metric tons of bonded bunker fuel to ships in the first quarter of this year, 1.9% more than a year earlier, according to Tian Qiujin, an analyst at OilChem, which tracks the data. This represents a 12% drop in bunker sales in Singapore, which is Asia’s biggest ship refuelling hub.
Shanghai has in recent weeks continued to enforce strict Covid-19 restrictions, and as Beijing begins mass testing for the virus, hundreds of ships carrying everything from bulk commodities to container boxes are now waiting off the country’s east coast. Traders told Bloomberg that the massive backlog of vessels had led to ships burning fuel as they idled in the water, forcing them to consider refuelling in Guangzhou or Zhoushan instead of Singapore.
However, the Maritime and Port Authority of Singapore (MPAS) has reported that ships are not avoiding its port to carry out major pit-stops for crew and fuel. But it noted that congestion at other ports, along with spiralling crude oil prices, may have reduced the amount of fuel ships were purchasing in the country.
A total of 3 020 ships called at the city state to refuel in March, 441 fewer than in the same month last year, according to preliminary data released by the port authority.
“When we ask our bunker suppliers, there hasn’t been any deliberate attempt by ships to skip Singapore,” said Quah Ley Hoon, chief executive officer of the authority. “But if you were coming to Singapore only for bunker operations, and have idled 21 days in China, you may just decide to bunker in China.”
