The ongoing West Asian crisis and the resulting disruption in shipping activity through the Strait of Hormuz are opening up new business opportunities for Cochin Port and Colombo in the bunkering segment.

Data from Cochin Port show that bunker fuel supply rose to 4.63 lakh tonnes in FY26, up from 3.54 lakh tonnes in FY25.

Monthly volumes also recorded a notable increase, touching 41,000 tonnes in February, 51,000 tonnes in March and 34,000 tonnes in April, compared with an average of around 30,000 tonnes during the same period last year.

Kochi has emerged as a leading bunkering hub in South Asia due to its strategic location near the busy East-West international shipping route. The port offers competitive fuel pricing, simplified customs procedures and relatively lower taxes, making it attractive to global shipping operators.

Bunkering and allied services involve supplying ships with marine fuel, lubricants and essential provisions such as food stores, fresh water etc. These operations are carried out either alongside the berth or offshore using bunker barges. Mostly this is at anchorage considering the costs involved for berthing ships at alongside jetties.

Industry sources pointed out that Port of Fujairah in the Gulf has traditionally been a preferred global bunkering destination. However, tensions in West Asia, blockade resulted in sharp decline in vessel movement through the Strait of Hormuz, have forced shipping companies to look for alternative refuelling locations, benefiting Kochi and Colombo.

Public sector oil marketing companies operating in Kochi have reportedly gained substantial bunker business during the first quarter of the current fiscal, particularly during February and March when regional tensions were at the peak. Demand has since moderated as the situation stabilized.

At present, Cochin Port can handle around two to three vessels per day for bunkering operations at outer anchorage. Any additional demand may result in ships waiting offshore. The port mainly supplies VLSFO, HSFO (fuel oil) and LSHFHSD (diesel), the sources said.

While Colombo remains a competitor because of the availability of bunkers (they depend mostly on imported bunkers) however, the monsoon season could tilt the balance in Kochi’s favour.

Sources said that Colombo faces operational limitations due to insufficient number of barges during rough weather conditions. In contrast, Kochi has three River Sea Vessel barges capable of operating even in monsoon weather, providing the port with a strategic advantage.

Besides, additional facilities like deslopping, supply of stores, crew change of Indian seamen are also possible at Kochi which also add to the credentials of Cochin Port, the sources added.

Published on May 25, 2026