Key facts
- Marine fuel prices are over 70% higher than pre-war levels.
- Term contracts have shortened to one to three months from six to twelve months.
- Ports such as Port Louis, Colombo, and Salalah are seeing increased usage.
- Vitol has started bunkering at Gwadar Port in Pakistan.
Shippers are increasingly opting for spot and shorter-term bunker fuel purchases due to volatile prices and supply security concerns stemming from the conflict involving Iran. This shift away from longer-term contracts provides greater flexibility as vessel rerouting and diversions around key Middle East waterways have intensified. Marine fuel prices have risen over 70% compared to pre-war levels. The disruption has also led to increased usage of alternative bunkering ports, including Port Louis, Colombo, and Salalah, with demand emerging in Africa and South Asia. Vitol has initiated bunkering operations at Gwadar Port in Pakistan to serve customers in the Gulf region.