Monjasa sees near 50% bunker sales growth in Southeast Asia despite COVID-19
29th September 2020 09:06 GMT

Bunker fuel supplier Monjasa said that so far this year it had supplied close to 50% more marine fuel volumes across Southeast Asia compared to last year, with Singapore being a key market spurring this growth.

”During our 12 years in Singapore, we have never recorded a stronger demand for our products and services than now,” Morten Jacobsen, general manager for the company in Singapore, said in a LinkedIn post on Sept. 28.

In 2019, Monjasa supplied a total of 517,424 mt of marine fuels across Southeast Asia.

The company has so far this year also welcomed 22% more new customers in the region, which has also contributed to its growth, it said, adding that pricing as well as full visibility on sourcing and supply are some of the factors that have helped the company achieve this momentum.

Singapore bunker prospects

“We work across niche markets like Vietnam, Thailand and South Korea, but currently, the Port of Singapore is where we see the most significant rise on the demand-side," Jacobsen said.

Monjasa's strong growth comes at a time when the bunker market is grappling with the ill-effects of the global coronavirus pandemic, which has brought unprecedented demand destruction for oil and oil products in its wake.

"Forecasts we've heard from our members [for 2020 bunker demand] range from minus 7% to minus 17% ... What we've seen is that demand is gravitating towards safe havens," Unni Einemo, director, International Bunker Industry Association, said on Sept. 16. during the virtual APPEC 2020 event.

Still, demand has been quite resilient at ports where, from the buyer's perspective, the quality is most guaranteed and where the suppliers are or have been providing the best quality service, she said at the time, noting that a case in point was Singapore, where bunker sales remain strong.

Singapore is the world’s largest bunkering port. Singapore's bunker sales have increased 5.3% year on year over January-August, with low sulfur fuel oil forming a substantial part of its bunker fuel mix, data from the Maritime and Port Authority of Singapore showed.

Demand for low sulfur bunker fuel has been stable in Singapore in September with total sales expected to be at similar levels or slightly higher from August, sources told S&P Global Platts on Sept. 29.

"It’s likely that demand [for LSFO] will pick up further in the fourth quarter when the market starts discussing tenders for the coming year (2021). Right now, the market is waiting for those tenders to be announced to get a sense of where prices are at,” a Singapore-based bunker trader said.

Meanwhile demand for high sulfur fuel oil is also expected to remain robust.

"I’m expecting this to continue as more vessels are expected to complete scrubber installations by the end of the year,” another bunker trader said.

Bunkerworld .,
29th September 2020 09:06 GMT

Comments on this Blog
Nazer Mohammed
30th September 2020
I’m expecting this to continue

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