Bunkering unaffected by Red Sea attacks in Djibouti – sources

Bunkering is going ahead as normal in the port despite the ongoing conflict in the Red Sea, sources say.

PHOTO: Ships and cargo cranes at Djibouti port. Getty Images

Ships passing through the area typically find it safer to lift bunkers in Djibouti because of the strong naval presence there, a trader claims. However, bunkering of naval ships is often prioritised over commercial ships, causing bunker delays for commercial ships, another source says.

VLSFO prices in Djibouti have gained significantly since the Houthi militia started attacking vessels in the Red Sea. The port’s VLSFO price has surged by $72/mt since the beginning of December, while the VLSFO price in the nearby port of Jeddah has shed $10/mt.

As a result, Djibouti’s VLSFO price has swung from near-parity levels with Jeddah in early December to a premium of $83/mt now.

Its VLSFO is also priced $115/mt higher than Fujairah’s at the moment.

VLSFO and LSMGO grades are super tight in Djibouti, while availability is good for both grades in Jeddah.

By Nithin Chandran

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