SINGAPORE: Singapore remained the world’s top bunkering port in 2014, despite a slight dip in bunker sales volumes. The country sold over 42.4M tonnes, down 0.7% as compared 2013 sales of 42.4M tonnes, according to the data from the Maritime Port Authority (MPA) of Singapore here the other day.
There was a hike of 1.9% year on year in vessel arrival tonnage at 2.37Bn gross tonnes in 2014 from 2.32Bn gross tonnes.
“Although there was an increase in the number of vessels calling at Singapore, bunker sales volume did not see for much increment. These might be due to vessels having more fuel efficient engines, or adopting more fuel efficient practices, such as slow steaming,” said a Singapore-based bunker trader.
Simon Neo, executive director of the bunker trading company, Piroj International shared the same sentiment, attributing the overall lower bunker sales volumes partially to the slow streaming and more efficient fuel consumption system in the new-built vessels.
According to Neo, the slower trade growth in Asia had also played a significant role in the lower bunker sales in 2014. He expects the bunker sales volumes to dip lower further this year, if the low regional trade activities persist.
“All these (conditions) are only temporary and (bunker sales volumes) will pick up once trades between the east and the west increased. China demand will also be one of the determining factors for Singapore,” added Neo.
According to MPA data, sale volumes of marine fuel oil 500 centistoke (500cst) increased 5.8% to 8.1M tonnes in 2014. Similarly, sales volume of low sulphur marine gasoil (LSMGO) surged 50.5% to 0.28M tonnes in 2014, compared to 0.19M tonnes in 2013.
Some Singapore-based bunker traders commented that the record high sale volume for 500cst might be due to its prices difference from the marine fuel oil 380 centistoke (380cst), while LSMGO increased mainly in November and December 2014, likely due to the preparation for the new Emission Control Areas requirements.
Meanwhile, Lui Teck Yew, the Minister of Transport of Singapore painted a mixed and challenging outlook for the shipping industry in the recent Singapore Maritime Foundation reception.
He pointed out to the uncertainly market outlook of the bulk market where all major players are facing difficulties, as well as the impact of lower oil prices on the offshore sectors. There are also industry concerns on the falling oil prices, which may cause the freight rates to drop further this year.
