The sharp plunge in bunker sales in Hong Kong in 2020, a manifestation of the slump in demand worldwide for marine fuels as well as quarantine restrictions imposed in the city-port due to the global coronavirus pandemic, has boosted bunker sales at Zhoushan, industry sources told S&P Global Platts.
“Hong Kong has been badly hit. It is difficult here, so we have had to bunker at other ports such as Kaohsiung and Zhoushan,” a shipowner said.
The Hong Kong government last year announced that effective July 29, it was further restricting crew changes to curb the spread of COVID-19.
Ships calling there for bunkers only would not be exempted from COVID-19 lockdown measures, and would be required to be quarantined for 14 days before receiving fuel, it had said.
According to industry sources, this along with other hurdles, has resulted in Hong Kong’s bunker sales decline by some 30%-40% year on year in 2020. The current demand is roughly only about 400,000 mt/month, they said.
South Lamma is the major anchorage port for bunker-only-call ships, but now the business is gone, a bunker trader said.
Bunker-only-calls from ships in Hong Kong mostly come from bulk carriers and tankers. They are now mostly bunkering in Zhoushan as it falls en-route and is convenient for them to stop by there, he said.
Even lower bunker prices at Hong Kong could not stimulate demand. Hong Kong delivered 0.5% sulfur marine fuel averaged $355.16/mt in October-December 2020, Platts data showed, lower than the $381.64/mt average for the same grade at the Kaohsiung port during the same period and $363.36/mt at Zhoushan, according to Platts data.
“I receive only two to three enquiries per day. We no longer buy term from the oil majors; we buy spot ex-wharf for every enquiry,” a Hong Kong-based bunker supplier said, referring to the dismal demand situation in Hong Kong.
Adding to the woes, is the lull caused by the impending holiday season.
“The market is quiet. It is much worse than last month, possibly due to the upcoming Lunar New Year,” a second bunker supplier said…
