Bunkering stations report a sharp decline in fuel sales this week. Inland shipping operators are reacting to a significant rise in diesel prices. These stations supply fuel to the fleet. Notably, they experienced a massive surge in demand just one week ago. Consequently, operators rushed to beat the price hike.
Sudden market shift and future outlook
A representative from OK Slurink described the previous Monday as chaotic. The company operates multiple bunkering locations across the Netherlands. They noted that even vessels with full tanks queued to top up. However, business has slowed considerably since that initial rush. Management at Bunkerstation Delta in Dordrecht and Terlouw in Capelle aan den IJssel confirmed this trend. Specifically, they stated that the current quiet period follows an unusually busy week.
Leendert Romijn, financial director of Bunkerstation Delta, anticipates that traffic will return shortly. He noted that ships cannot run on water. Nevertheless, personnel at OK Slurink suggest that captains will avoid filling their tanks to capacity if prices remain high. Instead, they will likely opt for smaller, more frequent purchases.
Global volatility and consumer impact
Escalating conflict in the Middle East drives the recent volatility. In particular, the closure of the Strait of Hormuz on 1 March is the primary cause. Approximately 20% of the world’s oil supply normally passes through this chokepoint. As a result, global Brent crude prices recently spiked towards $120 per barrel. In the Netherlands, national advisory diesel prices have climbed above €2.50 per litre. Restricted shipping and regional production cuts keep the market tight despite minor fluctuations from diplomatic rhetoric.
Refuelling frequency depends on vessel size and sailing profile. Furthermore, the Royal Inland Shipping Netherlands (Koninklijke Binnenvaart Nederland – KBN) trade association estimates an average of once every two weeks. A KBN spokesperson warned that higher fuel costs will ultimately be passed on to consumers. High fuel costs increase transportation expenses. Ultimately, these expenses drive up the retail price of goods.
@ anp | NEWS BRAINPORT
