Key facts
- Global shipping faces a fuel supply crisis due to disruptions in the Strait of Hormuz and attacks on Russian refineries.
- Securing specific fuel grades at ports is increasingly difficult, impacting voyage schedules and profitability.
- Vitol estimates Hormuz fuel oil flows are 800,000 tons per month below February levels.
- Attacks on Russian refineries have removed an additional estimated one million tons of fuel oil monthly.
- Singapore's very-low-sulfur fuel oil lead times increased to 11-18 days by October 13.
- Higher fuel prices are increasing financing burdens for shippers.
Disruptions in the Strait of Hormuz and attacks on Russian refineries are creating a global shipping fuel crisis, impacting not only crude oil and gas but also container shipping. Securing the right grade of fuel at the right port within a commercially workable window is becoming increasingly difficult, threatening voyage schedules and profitability. Vitol estimated that high-sulfur fuel oil flows through Hormuz are at least 800,000 tons per month below February levels, while attacks on Russian refineries have removed an additional estimated million tons monthly. North Asian refiners are drawing more than a million tons of HSFO for November processing, intensifying competition for a constrained product pool. While Fujairah's fuel oil imports have recovered from the second quarter, they remain approximately half of February's level. Lead times for very-low-sulfur fuel oil in Singapore have increased to 11-18 days. Higher fuel prices are also imposing a substantial financing burden on shippers, with September VLSFO averages at $872 per ton in Singapore and $939 in Fujairah. Shipowners are responding by making smaller, more frequent bunker purchases and using alternative locations.