SINGAPORE DATA: 2022 bunker sales down 4.2% on year, lowest since 2019

Bunker fuel sales in Singapore in 2022 fell 4.2% to 47.88 million mt, the lowest in three years and reversing the 0.3% rise seen in 2021, Maritime and Port Authority of Singapore data showed Jan. 13.

December's bunker sales fell 3.6% month on month to 4.21 million mt, MPA data also showed.

In line with the waning bunker sales, the total number of bunker-only calls across 2022 dropped 4.5% year on year to 37,662, the lowest since 2010 and despite December's figure rising 0.4% on the month and 5.3% on the year to 3,311.

Low sulfur fuel oil bunker sales in 2022 fell 8.3% to 30.14 million mt, the lowest since the International Maritime Organization's 0.5%S marine fuel mandate became effective January 2020.

Meanwhile, the proportion of LSFO bunker sales shrank 2.8% to account for 62.9% against the total in 2022, reflecting a consistent downtrend for the second consecutive year since the IMO-2020 mandate was in force.

December's LSFO bunker sales decreased 5.6% month on month to 2.60 million mt, which was 2.1% lower year on year.

High sulfur fuel oil bunker sales rose 6.2% to 13.68 million mt to account for 28.6% of total bunker sales, up 2.8 percentage points from 2021, MPA data showed.

Since the IMO 2020 mandate was introduced, HSFO bunker sales have been trending higher. Sales in December were 1.3% higher on the month and 10.4% above the previous year at 1.27 million mt.

Sales of low sulfur marine gasoil, which has a maximum sulfur content of 0.1%, demonstrated a downward trend for two consecutive years with a 2.9% drop in volumes from 2021, to record 3.61 million mt in 2022, and was last lower in 2019 with only 3.09 million mt sold, according to MPA data.

Amid the lackluster demand across December, delivered LSMGO volumes fell to a six-month low of 285,600 mt, 7.2% behind November's sales and 14.9% lower year on year.

Bunker market outlook positive despite weaker sales

Singapore's bunkering volumes in 2022 dipped by 4.2% on year to 47.9 million mt, but it remains as the world's largest bunkering hub, the country's Senior Minister of State for Transport and Finance Chee Hong Tat said in a speech at a Singapore Maritime Foundations event Jan. 13.

"Volumes dipped particularly in the first half of 2022 when the Russia-Ukraine war led to supply chain disruptions and high bunker prices globally," said Chee.

"Bunker sales in Singapore have since recovered with a rise in sales volume by 9.5% compared to the first half of 2022".

Singapore's transport ministry adds that it remains optimistic for the maritime sector's growth in the medium to longer term, although global economic growth is expected to slow this year.

"Competition is growing from ports and business hubs around the world. Maritime Singapore will therefore need to stay ahead by developing new and stronger capabilities in areas including digitization and decarbonization," added Chee.

More details are expected during the ministry's annual Committee of Supply debate in March.

Source: Maritime and Port Authority of Singapore