Singapore Bunker Fuel Sales Dip In November Amid Market Slowdown

Sales of marine bunker fuel in Singapore dropped to a two-month low in November, following a significant surge in October, according to data from the Maritime and Port Authority of Singapore (MPA). Despite the month-on-month decline, volumes were higher compared to November of the previous year, reflecting ongoing market dynamics.

Key Highlights

1. Overall Bunker Sales:
   • Total bunker fuel sales in November were 4.46 million metric tons, an 8.5% decrease from October but a 4.6% increase compared to November 2023.
   • Vessel calls for bunkering fell 4.5% month-on-month to 3,296, while container throughput dropped 4.7% to 3.34 million TEUs.
2. Fuel Breakdown:
   • Low-Sulfur Fuel Oil (LSFO):
     • Sales reached 2.4 million tons, down 4.6% from October.
   • High-Sulfur Marine Fuel (HSFO):
     • Volumes declined 13.1% to 1.58 million tons after reaching multi-year highs in the previous month.
   • Marine Gas Oil (MGO):
     • Sales softened to 338,300 tons for November.
3. Marine Biofuel and LNG:
   • Biofuel:
     • Sales remained strong at above 100,000 tons, despite a slight retreat. Notably, major liners like CMA CGM are negotiating larger biofuel bunker contracts for next year.
   • Liquefied Natural Gas (LNG):
     • Bunker volumes fell 45.6% month-on-month to 27,500 tons, with expectations for a recovery in 2024 as scaling-up initiatives gain momentum.
     • The MPA recently issued a call for proposals to expand LNG bunkering capabilities.
4. Market Trends:
   • Spot Demand:
     • Remained muted in November, extending into December, with bunker premiums declining to five-month lows due to competitive pricing.
   • Biofuel Deliveries:
     • Continued to emerge strongly, driven by demand from major shipping companies.

Outlook

With the MPA’s push for LNG expansion and ongoing interest in biofuels, Singapore’s bunker market is poised for further diversification and growth. However, short-term demand fluctuations and pricing pressures are likely to influence market activity in the coming months.