The South African Revenue Service (SARS) enforced the suspension in September last year.

In September 2023, SARS suspended offshore bunkering after it detained five bunker barges over import duty disputes. The incident took place around mid-September and ships were diverted to other bunker ports nearby like Durban and Richards Bay. 

By the end of September, offshore bunkering in Algoa Bay came to a complete halt. At that time, SARS did not provide an official statement regarding when bunkering might resume, but stated that investigations were ongoing.

Ports like Mozambique’s Nacala and Maputo as well as Durban and Cape Town witnessed a surge in demand as bunker buyers looked for alternative bunkering locations in the region.

In December, SARS issued amendments to its bunkering rules mentioned in the Customs and Excise Act. These draft amendments were open for public feedback until 12 January 2024. This raised speculation among port agents and other market participants that offshore bunkering might resume in February 2024. However, SARS remained silent and did not specify when bunkering could resume.

A Lost Opportunity

While the Houthi attacks on commercial ships sailing the Red Sea began in November, shipping companies started rerouting vessels around mid-December. Commercial vessels avoided the Suez Canal transits and instead opted for the longer route around the Cape of Good Hope.  

These diversions led to increased demand in other African ports, while Algoa Bay missed out on the opportunity due to its offshore bunkering shutdown. In December, South Africa’s Maritime Business Chamber (MBC) called SARS’ suspension “a significant misstep that hampered South Africa’s golden opportunity in the maritime sector”.

In April, SARS requested a second round of public feedback to its fresh amendments to the bunkering rules. The new draft incorporated amendments to rules regarding the storage of imported bunker fuel. The deadline for public comment was 10 May. No update on the offshore bunkering resumption was provided by the authority.

With no resolution in sight, suppliers moved their bunker barges away from Algoa Bay. All barges were moved away between 28 May and 10 June, Unathi Sonti, executive chairperson of MBC told ENGINE in June.

By Manjula Nair

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