Singapore's bunker sales in 2022 fall to three-year low

Total bunker sales in Singapore in 2022 reached 47.88mn t, down by 4.2pc from 49.99mn t in 2021, according to official data from the Maritime and Port Authority (MPA).

This is the lowest total yearly consumption in three years, as fewer vessels visited the city state to refuel given increasing competition from other regional ports, as well as slowing demand by shipowners because of recession fears.

Singapore sold 4.21mn t of bunkers in December, lower by 158,000t, or about 3.9pc, from the previous month. This was mainly because of weaker sales of very-low sulphur fuel oil (VLSFO), which in December fell by 5.5pc to 2.6mn t from 2.75mn t in November.

Sales of high-sulphur fuel oil (HSFO) in December reached 1.27mn t, up by 29,000t, or 2.3pc, from November.

Low-sulphur marine gasoil (LSMGO) consumption totalled 286,000t in December, down by 7.1pc from 308,000t the previous month.

A total of 37,662 vessels called at Singapore to refuel last year according to MPA data, a 4.5pc fall from 2021's total of 39,447.

China's largest bunker hub of Zhoushan sold VLSFO at an average discount of $5/t to Singapore last year, according to Argus data, incentivising buyers to head there instead. South Korea's ports also sold bunkers at increasingly competitive rates to Singapore.

Singapore reportedly sold 140,000t of biofuels over 90 biofuel bunkering operations in 2022, said Singapore's senior minister of state for finance and transport, Chee Hong Tat, on 13 January.

Sales of LNG bunkers totalled 16,000t in 2022, down sharply by 68pc from 50,000t in 2021.

Argus reported a daily average of 10 spot bunker deals in 2022, split into 6 for VLSFO, 2.5 for LSMGO and 1.5 for HSFO.

Singapore's delivered VLSFO, LSMGO and HSFO prices in 2022 averaged $797/t, $1,026/t and $518/t, respectively, compared to $532/t, $578/t and $412/t in 2021, according to Argus data.

By Sammy Six

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