Bunkering is heading for rapid and fundamental change – and not just because of the International Maritime Organisation (IMO) 0.50% sulphur cap in 2020.
According to Justin Murphy, chief executive of the International Bunker Industry Association (Ibia), considering the global economic power shifts taking place as well as the overall decline in economic growth one can expect to see new trading patterns emerge.
“Growing consumption and new trading relationships will create new trade patterns,” he said. “Economic demands for exporting and importing products will create new bunker demand centres while greater volumes of intra-regional trades will also impact.”
He said Singapore, currently the largest bunkering hub in the world, was already under threat from China which was looking to take over the number 1 position.
“Who knows if they will be successful or not, but it speaks directly to the shifts and changes that we need to be aware of.” According to Murphy it is likely that China will overtake the USA in global economic terms by 2028, while India could become the second largest economy by 2050. “While core markets will remain, what we will see is a global energy demand growth,” said Murphy.
He said that although there was increased pressure to cut CO2 emissions and reduce dependency on fossil fuels, they would continue to dominate energy demand for years to come. But, warned Murphy, taking into consideration the image of bunkering, the industry at large along with global shipping companies would face increasing scrutiny from stakeholders going forward.
“And that stakeholder group will be a much wider group than has been the case to date. We will have to have more meaningful engagement with a wider range of communities and as an industry create greater transparency.”
Singapore is under threat from China to “ take over the number 1 position. – Justin Murphy
