In October, Singapore’s bunker fuel sales surged to a new monthly high, driven by ship diversions and heightened demand linked to geopolitical and fee‑related disruptions across key ports, reports Platts.
According to CAS now‑cast research, total bunker deliveries in Singapore reached approximately 5.07 million metric tonnes, up 7.6 % month‑on‑month and 5 % year‑on‑year—exceeding the previous monthly record of 5.05 million mt, set in December 2023.
Diversions and fee disputes boost activity
The uptick came amid a backdrop of fee‑tussles between China and the U.S., which prompted some ship operators to reroute via Singapore. Following China’s announcement on October 10 of retaliatory port fees targeting U.S.‑linked ships—and the U.S. reciprocating on October 14—owners began changing patterns to avoid unexpected costs. Some U.S.‑flagged or U.S.‑affiliated ships diverted away from Chinese ports, with cargoes being transferred to non‑U.S. ships in Singapore. This operational reshuffle provided a tangible lift to Singapore’s bunkering volumes.
Fuel grades and market dynamics
In terms of fuel grade mix, low sulphur fuel oil (LSFO) remained the largest share of the bunker sales in Singapore in October, accounting for around 51.8 % (≈ 2.63 million mt). High sulphur fuel oil (HSFO) made up 40.6 % (≈ 2.06 million mt), and marine gasoil (MGO) represented about 7.5 % (≈ 383,000 mt). October’s LSFO sales were about 8.7 % higher than September, while HSFO grew by about 7.3 % month‑on‑month, and MGO by 2.4 %. These figures reflect both regulatory shifts (e.g., scrubber uptake) and cost‑driven fuel choices by shipowners.
Pricing and regional competitive edge
Singapore’s bunker premiums in October proved competitive relative to regional hubs. For example, the average premium for Singapore‑delivered marine fuel 0.5 %S bunker over FOB Singapore cargo values was around US$12.47/mt, significantly lower than the US$35.29/mt premium at Zhoushan in China. Meanwhile, Fujairah recorded even lower premiums (≈ US$11.15/mt) during the month. Traders noted that the more attractive premium in Singapore likely helped drive traffic, though the even lower Fujairah premium somewhat capped further upside.
Singapore’s bunker market looks set to remain sensitive to shifts in global trade routes, geo‑political tensions and port‑fee regimes. If the U.S.–China fee dispute eases, flows may normalize—but in the meantime, Singapore stands to benefit as a key “alternative” bunkering hub. Also worth watching: how future regulatory developments (including fuel and emissions rules) affect fuel‑grade mix and bunker demand.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Platts
