Image Credits : Compass by Rau's IAS
Indian ports recorded an increase in bunker ship-to-ship (STS) calls between January and July 2024, reflecting robust growth in maritime activities despite challenges posed by the monsoon season. The number of bunkers STS calls at Indian ports increased by 64% over the same period last year, according to data from S&P Global Commodity Insights, highlighting India’s increasing significance as a major player in the global maritime industry.
The surge in STS calls, which involve the transfer of bunker fuel from one vessel to another, highlights the increasing demand for fuel supply services at Indian ports. This growth is attributed to several factors, including the expansion of port infrastructure, improved regulatory frameworks, and India’s strategic location along major global shipping routes. The rise in STS activities is seen as a positive development for the Indian maritime sector, which has been working to enhance its capabilities and attract more international shipping traffic.
However, the report also noted a dip in demand during July, largely due to the monsoon season, which traditionally impacts maritime operations in the region. Heavy rains and rough seas during the monsoon months often lead to delays and disruptions in port activities, including bunker STS operations. Despite this seasonal setback, the overall performance for the year remains strong, with the industry showing resilience and adaptability in the face of weather-related challenges.
Industry experts suggest that the continued growth in bunker STS calls at Indian ports is a reflection of the country’s ongoing efforts to boost its maritime economy. Investments in port modernization, coupled with policy reforms aimed at streamlining operations, have made Indian ports more competitive and attractive to global shipping companies. Additionally, India’s focus on expanding its domestic shipping industry and increasing its share of the global bunker market is expected to further drive growth in this sector.
As the monsoon season subsides, analysts predict a rebound in demand, with the potential for even higher growth rates in the coming months. The upward trend in requests for bunker STS is probably going to continue, establishing India as a key regional hub for the supply of marine fuel.