Singapore bunker sales hit 54.92 million mt record in 2024 amid Red Sea reroutes

Singapore's bunker sales hit a new record high of 54.92 million mt in 2024, a 6% increase from the previous record in 2023, said the Maritime and Port Authority of Singapore (MPA) on Jan. 15.

"The increased uptake was partly due to the extended Asia-Europe shipping routes via the Cape of Good Hope given the disruptions in the Red Sea," MPA added in a statement.

High sulfur fuel oil sales in Singapore made up 36.8% of the total volume in 2024, up 4.5 percentage points compared to 2023. Conversely, low sulfur fuel oil volumes made up 55.3% of 2024's sales, down 4.9 percentage points year over year.

This comes as the global scrubber-equipped fleet continued its growth, alongside increased bunker frequency by ships amid reroutes away from the Red Sea, while LSFO margins were pressured amid rising competition from neighboring hubs like China, S&P Global Commodity Insights reported earlier.

"We can expect Chinese ports which handle significant import-export volumes such as Ningbo-Zhoushan and Shenzhen, and other ports in our region, to continue to register stronger growth as trade routes shift," said Singapore's minister of state for law and transport Murali Pillai.

In December 2024, Singapore sold 4.79 million mt of bunker fuels. This includes 1.89 million mt of HSFO, including its bio-blend, up 18.2% month over month and 4.2% year over year; and 2.52 million mt of LSFO, including its bio-blend, up 1% month over month but down 12.8% year over year, MPA data showed.

Platts, part of Commodity Insights, assessed the Singapore-delivered 380 CST HSFO bunker premium over the FOB Singapore 380 CST HSFO cargo values averaged $20.68/mt for all of 2024, down from $21.37/mt across 2023.

The Platts-assessed Singapore-delivered marine fuel 0.5%S bunker premium over the FOB Singapore Marine Fuel 0.5%S cargo values averaged $18.70/mt across 2024, down 12.5% from 2023, while the Zhoushan-delivered LSFO premium over the same delivered grade in Singapore dipped 19.3% year over year and averaged $3.92/mt in 2024.

Green milestones

MPA data also showed that alternative bunker fuels crossed the million mt mark for the first time in 2024. Of these, 0.88 million mt were biofuel blends, up 69.2% year over year, while LNG bunker volumes grew over fourfold to 0.46 million mt.

Meanwhile, methanol as a marine fuel is now commercially available in Singapore, with 1,626 mt sold in the year, while 9.74 mt of ammonia was bunkered for the first time globally amid trials in its port, MPA added.

To further green collaborations, Singapore plans to establish more Green and Digital Shipping Corridors in 2025, after forming partnerships with Australia and China's Shandong in 2024.

"We are also set to commence trials on solutions for enhanced ship-to-shore data exchange, such as paperless handling and electronic submissions of port clearance data this quarter, marking a significant step to more efficient port operations," added Pillai.

Choppy waters ahead

Singapore's bunker outlook for 2025 will likely be shaped by geopolitics and shifting trade patterns, even as seaborne trade is projected to grow 1.9%, with major shipping segments like bulk carriers and tankers expected to continue outperforming pre-pandemic years, said the MPA.

MPA added that this comes as the growth of Southeast Asian ports -- such as Singapore, Malaysia, Indonesia and Vietnam -- has been supported by regional supply chains adapting to growing demand and increased production within Asia.

"Our international environment has become more challenging, with evolving geopolitical dynamics amid continued tensions, a resurgence of protectionist trade policies, shifting trade flows and increasing competition with regional ports," said Pillai.

"With strong support from our tripartite partners from industry and unions, as well as partners across international organizations and governments, I am confident that the maritime sector will continue to grow."

To facilitate trade, MPA will reduce the verification frequency of mass flow meters from twice to once a year starting April 1, which is expected to save businesses about $220,000 (S$300,000).

Digital bunkering services and the issuance of electronic bunker delivery notes (e-BDN) will also be made mandatory from the same date to improve efficiency and enhance security and transparency.

Singapore bunker sales ('000 mt)

Source: Maritime & Port Authority of Singapore