Changes in the marine fuel market due to Middle Eastern conflicts have presented shipowners with new challenges. Following these conflicts, access to fuel and its quality have been severely impacted, forcing ships to undertake longer journeys to secure fuel.
Impact of Conflicts on the Fuel Market
Ships can no longer refuel at familiar ports and are compelled to navigate around Africa and change course to Atlantic regions to avoid conflicts near the Strait of Hormuz and the Red Sea. These changes have led to rising fuel prices, and new locations have been introduced as bunkering centers.
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Change in Fuel Supply Approach
Frederik Goutormsen, Head of Asia-Pacific at Stolt-Nielsen, has pointed out that bunkering can no longer be considered a last-minute and routine decision. Shipowners have turned to securing fuel early and monitoring fuel availability at key ports. According to Goutormsen, these changes are due to concerns about timely fuel supply and its price.
With increasing attacks in the Middle East, the flow of oil has come under more pressure, and prices for oil and marine fuels have risen. At a maritime conference in Singapore, the rising demand for bunkering at lesser-known ports such as Port Louis in Mauritius, South Africa, West Africa, Brazil, Sri Lanka, and Pakistan was discussed.
Shipowners are currently forced to refuel more frequently and in smaller volumes each time to avoid being locked into specific prices and at designated ports. These challenges have made fuel supply a more complex process, requiring shipowners to pay closer attention to more reputable suppliers.
Additionally, Saudi Arabia is seeking ways to increase its oil pipeline capacity to destinations outside the Persian Gulf to 10 million barrels per day within the next two to three years. Meanwhile, Indian refineries have reduced purchases of Russian crude oil for delivery in November due to increased competition from China.
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