- In February, marine fuel sales in Singapore, the world’s largest bunkering hub, experienced a decline to a three-month low, signaling a shift in global bunker markets post-Red Sea diversions.
- Despite a year-on-year increase, sales dropped compared to January, likely influenced by adjustments in voyage plans by container lines amid stabilizing situations.
Singapore’s marine fuel sales in February reached a three-month low, totaling 4.48 million mt, down 8.4% from January’s figures. This decline follows the uncertainty surrounding Red Sea diversions, prompting adjustments in purchasing behavior by container lines, albeit with an 18.1% increase compared to the same period last year.
Impact of Red Sea Situation
Initial uncertainty over the Red Sea situation drove heightened bunker purchases in Singapore as a precautionary measure. However, as the situation stabilizes, container lines are redistributing some purchases to ports around Africa and other regions, affecting Singapore’s sales.
Variations in Bunker Types
Sales of various bunker types exhibited fluctuations in February, with VLSFO, HSFO, distillates, and biofuel blends experiencing declines. Notably, LNG bunker sales surged to a record high, while methanol sales were absent during the period.
Market Dynamics and Regulatory Framework
Despite seasonal factors impacting February’s sales, Singapore remains a key player in the global bunkering landscape. Stringent regulations, including the use of mass flow meter systems for precise measurements and licensing requirements for bunker suppliers, contribute to the reliability and transparency of Singapore’s bunkering operations.
Price Trends and Gross Tonnage
Average VLSFO prices in Singapore saw a slight increase month-on-month, while the G20-VLSFO Index recorded a marginal decline. Despite fluctuations in prices, total gross tonnage visiting Singapore rose in February, driven primarily by increases in bulker and container ship tonnage calls.
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Source: Port News
