[vc_row][vc_column][vc_column_text]A steady shift in bunker demand away from the port of Mumbai has helped Kochi lift the amount of bunker fuel sold there, trade sources said.
A complete ban on supplying bunker fuel to vessels anchoring at Mumbai outer port limit has led some of the vessels to sail further down to the port of Kochi, the only Indian port which now allows OPL bunkering, trade sources said.
“OPL [bunker] supply in Mumbai has never been legal. Still companies could take special permission from the customs authorities for OPL supplies,” said a trader.
The Mumbai port authority has however completely clamped down on OPL supplies in the last six months. This has led to a fair share of the volume to shift to Kochi, the only other major port on the west coast of India, said traders.
“Earlier vessels moving out of Gujarat ports or those coming from Colombo used to bunker OPL Mumbai,” said a trader.
Market sources estimate current Mumbai bunker demand at 10,000-13,000 mt/month, down from between 25,000 mt and 30,000 mt per month a year or so ago of which around 10,000-15,000 mt of supply was likely OPL basis.
At least 50% of the drop in Mumbai bunker demand is said to have shifted to Kochi, which market sources estimate bunker sales at 15,000-20,000 mt/month currently.
SMOOTHER BUNKERING OPERATIONS AT KOCHI ALSO ATTRACT DEMAND (sub-head)
Besides a demand shift from the ban on OPL bunker supply at Mumbai, bunker demand at Kochi has also apparently been boosted by relatively easier logistics to supply product there.
“[Bunkering] operations are relatively smooth in Kochi, while it can be quite a hassle in Mumbai,” said a trader who sells bunker at both Mumbai and Kochi.
“Mumbai has no dedicated barge loading berth while Kochi has a full-time barge loading berth. The twin-berth liquid cargo jetty at Mumbai is almost exclusively for BPCL [Bharat Petroleum Corp. Ltd.]. It takes about six to seven hours or a maximum of 12 hours to complete a bunkering operation in Kochi as compared to about 24 hours in Mumbai,” said a trader.
“It’s notable that shipowners are now looking at Kochi as a destination to make bunker only calls,” said a Mumbai-based trader at bunkering firm Matrix Bharat.
Matrix Bharat, a joint venture between Indian state-owned BPCL and Matrix Marine Fuels, recently concluded delivery of the biggest volume — 3,240 mt — of bunker fuel sold to a vessel on bunker only call at Kochi on an OPL basis.
“Considering how [volumes] have picked up recently, it does seem like there is room for further growth, said the source.
“Overall [India] bunker market is estimated at between 60,000 mt and a maximum of 70,000 mt per month. I don’t expect that volume to go up significantly in the near future, but there is potential for demand to shift within the various ports. To that extent it is likely that Kochi volumes may rise to about 25,000 mt,” said a trader.[/vc_column_text][/vc_column][/vc_row]
