- Global bunker fuel demand is surging as vessels avoid the Red Sea.
- Major ports like Singapore, Fujairah, and Rotterdam report spikes in marine fuel sales.
- Longer voyages increase emissions and pressure global supply chains.
Ongoing threats to commercial shipping in the Red Sea, Gulf of Aden, and Bab al-Mandeb Strait have forced many vessels to take longer, safer routes around the Cape of Good Hope, reports Platts.
These detours add 10 to 14 days to typical journeys, dramatically increasing fuel consumption and leading to significant shifts in global trade flows. Container ships and tankers have been the most affected, prompting widespread changes in voyage planning and delivery schedules.
Fuel Demand Surges at Key Ports
The spike in longer voyages has caused a notable increase in bunker fuel demand at several global ports:
- Singapore reported record-breaking marine fuel sales in 2024.
- Fujairah saw its first annual rise in bunkering volumes after years of decline.
- Rotterdam recorded a double-digit percentage increase in fuel sales during early 2024, particularly in high-sulfur fuel oil.
Ports in Africa and the Mediterranean—such as Durban, Port Louis, Gibraltar, and the Canary Islands—have also experienced unprecedented demand growth, in some cases seeing increases of 30% to 60%. This has strained local supply chains and storage infrastructure, forcing ports to rapidly adapt to the new traffic patterns.
Emissions and Economic Impact
The extended shipping routes are driving up carbon emissions, with global bunker demand rising by an estimated 140,000 barrels per day in 2024. This added consumption comes with a cost—not only in higher fuel bills, but also in freight rates, insurance premiums, and delivery delays. The supply of available containers has also tightened, leading to price hikes across global logistics networks.
Despite the current boost in bunker fuel sales, long-term forecasts remain cautious. New environmental regulations, such as carbon pricing and fuel efficiency standards, are expected to slow growth in marine fuel demand over the coming years. These measures will likely reshape how and where ships refuel, with a stronger focus on sustainability.
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Source: Platts
