Key facts
- Singapore's total bunker sales decreased by 6.8% year-on-year to 4.55 million tonnes in May.
- Monthly sales increased by 4.5% compared to April, which saw a 14-month low.
- Demand for VLSFO, HSFO, and LSMGO all declined year-on-year.
- Sales of alternative marine fuels dropped 23% year-on-year, with biofuels seeing a 57% decline.
- LNG bunker fuel demand reached a record high, increasing 56% year-on-year.
- Vessel arrivals at the port increased year-on-year and month-on-month.
Total bunker sales at Singapore's port fell by 6.8% year-on-year to 4.55 million tonnes in May. This marked a recovery from April, which saw a 14-month low in sales, with May's figures rising 4.5% from the previous month.
Weak demand for conventional bunkers, influenced by the US-Iran war and competition from other Asian ports like Zhoushan, continued to impact sales. Traders noted that some ships diverted routes due to cheaper fuel options elsewhere, and reduced supplies from the Strait of Hormuz limited bunkering opportunities for larger vessels like VLCCs.
Sales of very-low sulphur fuel oil (VLSFO) decreased by 6.5% year-on-year to 2.29 million tonnes, while high-sulphur fuel oil (HSFO) sales dropped by 5.2% to 1.79 million tonnes. Low-sulphur marine gasoil (LSMGO) sales fell by 4.3% to over 327,000 tonnes, as charterers and shipowners reduced purchases due to higher prices in May.
Despite cautious buying sentiment, vessel arrivals increased by over 3% year-on-year and nearly 8% month-on-month to 11,729, providing some support to bunker demand. Singapore's VLSFO sales rose 4.7% from April, HSFO sales increased slightly by 0.4%, and LSMGO sales were up around 28% month-on-month.
On the alternative fuels front, total volumes fell by 23% year-on-year to 137,800 tonnes in May. Biofuel demand specifically plunged by 57% year-on-year to 60,800 tonnes, with VLSFO blend consumption down 62%. However, B100 consumption saw a more than fivefold increase to a record 12,800 tonnes. Demand for LNG as a bunker fuel continued its growth, rising 56% year-on-year to a record 70,300 tonnes, on track to surpass 2025's total.