Unni Einemo, the director of the International Bunker Industry Association (IBIA), in a conference on Wednesday, said that the coronavirus pandemic is expected to cut marine fuel demand by 17% this year and might trigger further consolidation among bunker suppliers through mergers and acquisitions. Einemo said that the industry is facing difficulties to secure fundings amid reduced margins, low demand, and ample supplies.
The International Energy Agency on Tuesday said that demand for fuel oil, which includes marine bunker fuel, is expected to decline by 0.4 million bpd, or 6.3% this year. The expected decline is not as sharp as those of jet fuel, diesel, and gasoline, which combined consumption is likely to fall by 7.4 million bpd, or 11.6%, of demand in 2020.
Bunkering hubs such as UAE’s Fujairah suffered plummeting demand as the coronavirus pandemic slowed the world trade. Einemo added that some bunkering hubs reported 30%-40% year-on-year contraction in June. She noted that Singapore had so far been resilient, seeing year-on-year declines only in May and June.
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Published on September 17, 2020 12:27 PM (GMT+8)Last Updated on September 18, 2020 9:45 AM (GMT+8)
