August 27, 2020: Oceangoing vessels calling Bangladeshi ports will soon have the ability to bunker locally after the government authorized state-owned Petroleum Corp. to import 150,000 tonnes of very low sulfur fuel oil (VLSFO).
The availability of International Maritime Organization-compliant 0.5 percent sulfur fuel oil in Bangladesh’s main port of Chittagong will help lower operational costs for carriers, particularly the 22 feeder operators that work some 84 vessels calling from major hubs like Singapore, Colombo, Port Klang, and China.
In the absence of VLSFO in Chittagong, those vessels need to arrive carrying the required fuel for use in their return voyage, which lowers their cargo capacity and productivity due to the low water draft there. The fuel for return trips is typically loaded in Singapore.
Shipping officials said the rate on the Chittagong-Colombo route is much higher due to the lack of low sulfur in Bangladesh. The feeder vessels on the route that bunker in Singapore are forced to navigate additional miles, which eats into their profit.
“Now with the availability of low sulfur marine fuel, the Chittagong port will be competitive again as feeders plying the Chittagong-Colombo route would bunker from here,” said a representative of a mainline operator in the Bangladeshi capital Dhaka.
The source said vessel operators will be able to bunker from Chittagong at a competitive rate, which will reduce operational costs and, ultimately, help consumers.
Mohammed Abdullah Jahir, general manager of Pacific International Lines, said foreign vessels might also bunker in Chittagong if they get a comparatively good rate.
The IMO on January 1 implemented its new sulfur rule that requires vessels to burn fuel with a sulfur content of not more than 0.5 percent, down from the former limit of 3.5 percent. Vessels can continue using high sulfur fuel oil (HSFO) if they install costly emissions-burning scrubbers.
Source: JOC
