Red Sea Vessel Diversions Hit African Bunker Infrastructure

Red Sea vessel diversions around the Cape of Good Hope are putting pressure on port infrastructure and bunkering supplies as demand increases at less frequented ports.

• Demand for bunker fuel has risen at ports including Mauritius' Port Louis, Gibraltar and ports in the Canary Islands and South Africa as well as Cape Town and Durban according to Reuters reports.
• "Ships are diverting away from the Red Sea and re-routing around the coast of South and West Africa – this increased traffic has created huge congestion in bunkering ports around Africa and placed significant pressure on port infrastructure," according to John A. Bassadone the CEO of Peninsula, a major bunker supplier.
• Peninsula expects a bunkering boost in Las Palmas and Western Mediterranean ports as African ports exceed capacity.
• Prices of low-sulphur bunker fuel delivered at Cape Town have jumped 15% to almost $800 per metric ton since mid-November.