After US counter military operations against Iran effectively shut the Strait of Hormuz, the global maritime sector is on alert over bunker fuel shortages. A blockage in the supply of crude oil and low-sulphur bunker fuel from the Gulf region has placed serious pressure on container and tanker fleets operating the Asia-Europe corridor. According to the Journal of Commerce, ship operators have warned that stocks at current depots could run out within a few weeks.
The world's largest bunker hub, Singapore, is experiencing a price shock as supply tightens and demand accelerates. Prices at Fujairah (outside the Gulf of Oman) and Rotterdam terminals have also risen in double digits over the past week. As operators continue to route vessels via the Cape of Good Hope instead of the Red Sea, they have had to replan their bunkering stops.
Industry experts say the Gulf oil supply cannot be replaced quickly. Filling the gap via sub-Saharan Africa, Western Canada, and US Gulf suppliers will take months. Shipping executives who discussed the topic at the Breakbulk26 conference acknowledged the persistence of geopolitical risks and moved long-term bunker contracts and strategic reserve stock strategies onto the agenda. Small and mid-sized trans-Pacific carriers, meanwhile, complained about fuel surcharges applied by the major carriers.
Key Takeaways:
1. US counter military operations against Iran effectively shut the Strait of Hormuz.
2. The global maritime sector is on alert for bunker fuel shortages; stocks could run out in weeks.
3. Prices at the Singapore, Fujairah, and Rotterdam bunker terminals have risen in double digits.
4. Gulf oil supply cannot be replaced quickly; sub-Saharan Africa and US Gulf sources need months.
5. The sector is putting long-term bunker contracts and strategic reserve stocks on the agenda.
