- Bunker Volumes Rise in Singapore Amid Vessel Traffic and Aggressive Fuel Pricing.
- Singapore Sees Uptick in Marine Fuel Sales Driven by Low-Sulphur Demand.
- Marine Fuel Sales in Singapore Climb 7.8% Month-on-Month in March.
Singapore, the global biggest bunker hub, recorded a strong rebound in marine fuel sales in March after it plummeted to a 20-month low in February. Overall sales, based on data issued by the Maritime and Port Authority of Singapore (MPA), increased to 4.47 million metric tons, representing a 7.8% increase from the previous month and a slight 0.5% increase from the same period a year ago, reports Marine Link.
Market Rebound Supported by Rising Vessel Activity
The sales increase in bunkers happened alongside a pickup in vessel calls and an increase in container throughput. Vessel calls to bunkering rose by 14.5% to 3,522 in March, while container throughput reached multi-year highs with an increase of 12.6% to 3.74 million twenty-foot equivalent units (TEUs). The rebound was also driven by aggressive pricing policies, especially in the low-sulphur marine fuel category, that encouraged more spot purchases.
Robust Demand for Low-Sulphur Marine Fuel
0.5% very low-sulphur fuel oil (VLSFO), the leading marine fuel grade, saw sales rise sharply by 12.9% to 2.33 million tons. Traders reported that increased competition and aggressive selling had squeezed bunker premiums, prompting shipowners and operators to seize on favourable pricing opportunities.
Stable Performance in High-Sulphur Fuel and Marine Gasoil
In contrast, high-sulphur marine fuel oil (MFO) sales were more or less flat at 1.62 million tons. Volumes of marine gasoil also experienced a moderate increase, up 6.0% to 333,600 tons. Even with the volatility in other markets, these fuels held steady as a share of the market.
Alternative Fuels Gain Traction
Alternative fuels also kept rising, as marine biofuel volumes reached yet another record, crossing over the 145,000-ton barrier. Liquefied natural gas (LNG) sales also recorded higher month-on-month figures, indicative of a larger industry transition towards cleaner energy options in shipping.
IMO Launches Worldwide Emissions Standard
The growth in sales follows closely behind the International Maritime Organization (IMO) agreeing on a global standard for fuel emissions just days before. The new rule will levy an emissions tax on ships that exceed specified thresholds while providing an incentive for those using cleaner-burning fuels. The move should influence fuel consumption and compliance policy throughout the shipping industry worldwide over the coming months.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Marine Link
