S'pore bunker mart faces stormy seas<\/p>\n
SINGAPORE (Reuter): Singapore bunker market faces stormy seas
\nas it struggles to maintain a hold on shippers increasingly
\npreferring to refuel in South Korea and the United Arab Emirates
\n(UAE), industry sources said yesterday.<\/p>\n
\"The Asia bunker pie is growing, but Singapore is getting a
\nsmaller slice each time as it become more expensive and as other
\nports in Asia, in particular South Korea, are expanding at a very
\nfast rate,\" said an independent bunker trader.<\/p>\n
Bunker fuel oil consumption in the Asia-Pacific region is
\nexpected to grow 3.8 percent a year between 1995 and 2000 and 3.4
\npercent from 2000 to 2005, according to forecast by Fereidun
\nFesharaki of Hawaii's East-West Center.<\/p>\n
But major oil and independent bunker traders said that growth
\nwould be outside Singapore, until now the region's premier port
\nfor refueling.<\/p>\n
They said Singapore bunker sales volume in 1997 would slip by
\n3.0 percent after a similar decrease in 1996. By comparison,
\nSouth Korean bunker sales volume grew by 13 percent in 1996.<\/p>\n
\"We may save up to Singapore $2-$3 (US$1.38-$2.08) per ton.\"
\nsaid a ship owner of refueling in South Korea.<\/p>\n
\"In Singapore, we have to pay a wharfage costs of S$2.20 per
\nton which we would not have to pay anywhere else in Asia,\" he
\nsaid.<\/p>\n
\"The Fujairah market (in the UAE), with a large supply base,
\nis also booming with conditions more favorable for very large
\ncrude carriers to bunker, compared to Singapore. Singapore caters
\nfor more bulk and cargo ships,\" said a Mideast trader.<\/p>\n
\"Singapore may be able to maintain its competitive edge for
\nthe next five years but the good old days are certainly gone
\nbecause it is no longer the most desired bunkering center,\" said
\na trader with a major oil firm.<\/p>\n
A ship owner said more ships are heading directly to Asian
\nports instead of using Singapore as a transshipment port, cutting
\ntime and costs. If the trend continued, Singapore's bunker sales
\nwould be spread around the region, he added.<\/p>\n
Shippers said Malaysia was another potential rival.<\/p>\n
\"Singapore may able to sustain its current share of the Asia
\nbunker market for the next two to three years but may lose some
\nof its volumes when Port Klang develops,\" said the trader with a
\nmajor oil firm.<\/p>\n
Malaysia is developing Port Klang on the west coast as a rival
\nto Singapore and the trader said bunker fuel terminals at south
\nMalaysia's Pasir Gudang had already taken some of Singapore's
\nbusiness.<\/p>\n
\"We would definitely see more price competitiveness as other
\nregional ports develop,\" said the ship owner.<\/p>\n
Dealers in Singapore said sales just outside Singapore waters
\nhad also become a major concern.<\/p>\n
\"More and more vessels are bunkering off port limits,\" said a
\ntrader.<\/p>\n
\"Firstly they do not have to pay the $2.20 per ton wharfage
\ncosts. Secondly, it save time. The ship does not need to travel
\nthe extra distance coming into Singapore. And third, it is a free
\nworld out there, not regulated by the Singapore authorities,\" he
\nsaid.<\/p>\n
Shippers, however, said that while refueling at sea may save
\ntime and money, they can be shortchanged on quality as suppliers
\ndo not have to stick to Singapore's quality control regulations.<\/p>",
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