Indian Ports See Major Surge in Bunkering Due to Red Sea Diversions
Source: S&P GlobalBunkering and ship-to-ship (STS) transfers at Indian ports have skyrocketed by 55% from January to November 2024, as shipowners increasingly avoid the Red Sea due to security concerns. Sri Lanka, a key competitor in the region, also reported a 51% increase in similar activities during this period.India recorded a total of 11,228 bunkering and STS calls this year, a significant jump from 7,241 in 2023. Meanwhile, Sri Lanka saw its numbers rise to 2,347 from 1,551 during the same timeframe. This shift has been largely driven by attacks on shipping vessels in the Red Sea, which have prompted many shipowners to opt for longer, safer routes around Africa. As a result, Indian ports have experienced a notable boost in bunker fuel demand.According to the
Platts Bunkerworld survey, India’s total bunker fuel demand reached 2.25 million metric tonnes in 2024. This trend is expected to continue in 2025, fueled by favorable pricing strategies and recent policy changes, including the removal of excise duties on marine gas oil. These factors have made Indian ports increasingly attractive to shipping companies, positioning the country as a growing hub for marine fuel supply in the region.Sri Lanka has also benefited from the changes in shipping routes, but India’s larger infrastructure and competitive pricing give it a distinct edge. Experts predict further growth in India’s bunkering activities as global shipping patterns adapt to ongoing security and economic challenges.This surge highlights the strategic importance of Indian ports in global shipping and reinforces the country’s potential as a key player in the bunkering and maritime trade sectors.
