Sales of marine bunker fuel at Singapore climbed 8.5% in the first half of 2024, official data showed on Monday, as shipping disruptions in the Red Sea boosted global bunkering demand, though demand slowed month-on-month in June.
Total sales at the world’s largest vessel bunker hub were at 27.2 million metric tons in the first half, compared to 25.1 million tons a year earlier, data from Singapore’s Maritime and Port Authority (MPA) showed.
Conventional fuel sales, including residual fuel oils and marine gasoils, totalled 26.7 million tons, up 7.5% from a year ago.
Global bunkering demand edged up this year as Red Sea shipping disruptions forced vessels to take longer voyages and refuel more at key hubs, industry sources said.
Demand for alternative fuels also gathered pace as shipowners trial cleaner alternatives to cut emissions and to meet guidelines under the EU emissions trading system (ETS).
Bunker sales of marine biofuel blends at Singapore totalled 288,000 tons in the first half of this year, up 48.7% from the same period last year, based on MPA data.
“Demand for biofuels will see upside from larger vessels heading from Asia to Europe,” said Ivan Mathews, consultancy FGE’s head of Asia refining and global fuel oil service.
“As emissions from biofuels are given an emission factor of zero under the EU ETS, this should incentivize ships to bunker biofuels for voyages to Europe,” said Mathews.
Meanwhile, liquefied natural gas sales were at 212,000 tons for the first half of the year, more than quadrupling from last year, the MPA data showed.
CONTAINER THROUGHPUT
Container shipping volumes totalled 20.25 million 20-foot equivalent units (TEUs) in the first six months of 2024, logging a 6.4% increase from the same period last year, MPA data showed.
Singapore has been experiencing more severe congestion this year due to logistical bottlenecks across key Asian and European ports.
“In Southeast Asia, overall congestion levels have been reduced but berthing delays remain at up to 3 days in Singapore,” said container tracker Linerlytica in a note this month.
The congestion worsened in the second quarter and this could have caused some vessels to skip Singapore and opt for other regional ports, slowing bunker sales in more recent months despite the annual increase in volumes, said some industry sources.
June bunker sales totalled 4.27 million tons, sliding 11.4% from May, while container throughput eased 5.1% to 3.35 million TEUs, MPA data showed.
The slower monthly sales could also be driven by regional diversions to China’s Zhoushan which was offering fuel at lower prices than Singapore in June, industry sources said.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Varun H K and Mrigank Dhaniwala)