Bunker prices surge as conflict strains fuel supply

· Shipping · Singapore

The cost of fuelling ships has risen by roughly three-quarters since the US-Iran war erupted on February 28. In Singapore, the world's largest bunkering hub, VLSFO was assessed at $509 per tonne on February 27, the final trading day before the war, while high-sulphur fuel oil stood at $432 per tonne. Singapore's bunker market remains tight despite average demand, with recommended lead times for VLSFO holding at around 10-15 days as most suppliers operate with low stocks and cargo arrivals are delayed by the Middle East conflict. Meanwhile, LNG bunker prices show Rotterdam's ARA price up $12 per tonne to $1,432/mt, Singapore down $1 to $1,566/mt, and the Baltics up $12 to $1,537/mt.

Why it matters：Fuel is the single largest voyage cost for shipowners, so a three-quarter surge feeds directly into freight rates, charterer economics and the viability of longer voyages.

Key points

  • Singapore VLSFO was assessed at $509 per tonne on February 27, before the war began.
  • VLSFO lead times in Singapore remain around 10-15 days amid low supplier stocks.
  • Rotterdam LNG bunker prices rose $12/mt to $1,432/mt as ARA premiums climbed.

Sources (original reporting)

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