Marine fuel sales at top bunker hub Singapore log soft start to 2025
Sales of marine fuel at Singapore, the world's largest bunker hub, logged weaker volumes in the first month of 2025, official data showed on Friday.
Volumes totaled 4.46 MM tonnes (t) in January, down 6.9% month-on-month and falling 9.1% year-on-year, based on data from Maritime and Port Authority of Singapore (MPA).
Some market sources in Singapore said they spotted buying inquiries that were lower than usual for January, often a month with robust volumes and healthy seasonal demand.
Volumes for the mainstay 0.5% low-sulfur fuel oil (VLSFO) grade totaled 2.43 MMt in January, stable from December, while high-sulfur marine fuel volumes dropped 11.7% to 1.66 MMt.
Marine gasoil sales also weakened, slipping 21.4% month-on-month to 259,600 t.
For alternative fuels, marine biofuel sales inched 1.3% up at 107,900 t, while liquefied natural gas (LNG) bunker sales plunged 86.4% to 6,600 t in January.
Going ahead, there will be caution in the global shipping market as it grapples with the resurgence of a U.S.-China trade war, while eyeing uncertainty in Red Sea developments.
The tariff spectre could curtail broader marine fuel demand due to a contraction in global trade flows, particularly from China, said Emril Jamil, senior analyst at LSEG.
"Another potential disruption is 'blank sailing' where shipping lines cancel scheduled voyages or skip ports in their shipping routes due to low cargo demand, resulting in lower fuel requirements," Jamil added.
Reflecting lukewarm demand, Singapore spot bunker premiums for VLSFO have fallen in February versus January.
Singapore delivered-basis bunker premiums held near the low $10s to cargo quotes this week, compared with high the $10s seen in January, according to market sources.
Meanwhile, container throughput at Singapore dipped 1.6% to 3.5 MM 20-ft. equivalent units (TEUs) in January, though vessel calls for bunkering rose 1.0% from the prior month to 3,580, MPA data showed.
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