Marine fuel suppliers in Singapore, the world’s largest ship-refueling port, are reducing their barge operations due to shrinking profit margins caused by weak bunker demand and global uncertainties, reports Reuters.
Weak bunker demand
The slowdown in global marine fuel sales throughout 2025, driven by tariff pressures and trade disruptions, has led to lower bunker prices, making the operation of fuel barges less economically viable.
Typically, suppliers need a margin of at least $7 per metric ton over ex-wharf prices to break even. However, this year, the margin has fallen below $4, significantly squeezing profits. As a result, major suppliers are adjusting their fleets. One company has cut its bunker barge fleet from nine vessels to between three and five, focusing more on ex-wharf sales rather than direct delivery to ships. Another supplier has reduced its vessels under contract of affreightment from two or three down to just one or two per month, while maintaining its time-chartered fleet. Additionally, a third supplier is planning further reductions to its bunker barge fleet later in 2025.
Despite the number of bunker tankers licensed in Singapore increasing to 214 by February, the weak demand and tight pricing environment are forcing some companies to scale back operations. Consequently, Singapore’s total bunker fuel sales declined by 1% year-on-year in the first half of 2025, totaling nearly 27 million metric tons.
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Source: Reuters
