Glencore unit to deploy another tanker to South Africa as tax dispute disrupts bunkering

South Africa's Astron Energy, a unit of Glencore, will deploy bunkering tanker Pearl Kate to help move low-sulphur marine fuel along the coast after another vessel was seized by tax authorities, according to court documents and industry sources.

Its arrival should restore part of South Africa’s strained bunkering capacity at a time when rerouted global shipping has increased demand for refuelling along the Cape route.

The Pearl Kate, which marine-tracking websites show is set to arrive in Cape Town from Singapore this week, is the third South African-flagged tanker introduced by Astron, a company official said.

Astron seeks to recover refuelling capacity it lost when the South African Revenue Service last March detained and then seized the tanker Essien, with its fuel cargo.

The seizure, contested in the Western Cape High Court by Astron and shipowner Ocean Ark Shipping, stems from claims by SARS that the foreign-flagged vessel chartered by Astron was improperly declared and failed to pay required value-added tax.

The latest legal dispute arose in the wake of a broader tax crackdown by SARS in late 2023, which resulted in the detention of five vessels in Algoa Bay on the east coast over alleged breaches of the Customs and Excise Act.