Bunker sales picked up at the port of Singapore in July as more ship arrivals bolstered demand for both conventional and biofuel blends. But slow demand from shipowners pushed demand down year-on-year for LNG.
Total bunker sales rose by 5.7pc on the year to 4.9mn t in July, according to preliminary data released by the Maritime and Port Authority of Singapore (MPA). Monthly bunker consumption in the city state was last higher in December 2023.
Strong demand for refuelling at the port was in line with the 5.7pc year-on-year rise in vessel arrivals. Ships calling for the purpose of bunkering rose by 2.6pc on the year to 3,651 vessels.
In the conventional fuels segment, overall demand for HSFO remained strong, particularly as shipowners with exhaust scrubbers installed sought lower-cost fuel. July HSFO sales climbed by over 10pc on the year to nearly 2mn t, reaching a record high since the International Maritime Organisation's 0.5pc sulphur cap was imposed in 2020. Most shipowners continued to buy HSFO on term contracts during market uncertainty.
But VLSFO sales in July bucked the trend, falling by 4.6pc on the year to 2.4mn t, possibly as buyers looked to other alternatives.
Consumption of biofuel blends at the port of Singapore rose by 147pc on the year to 892,600t in July.
Demand for VLSFO blends was the highest versus other blends, with July consumption at 80,500t in July, 89pc higher year on year. Total demand for VLSFO blends — comprising mainly B24 and B30, was at 636,840t in January-July.
Consumption of high sulphur fuel oil (HSFO) blends touched 238,170t up to July in Singapore, with some slowdown in spot demand in recent months. In July, HSFO blend consumption jumped by nearly five times to 35,300t from a year earlier.
Shipowners have been trialling B100 this year, with July consumption at 2,600t. Demand for B100 in January-July totalled 9,500t.
Among other fuels, consumption of LNG for bunkering declined by 3.8pc on the year to 41,500t, while for the year demand totalled 259,520t. Demand for LNG as a bunkering fuel has risen sharply this year with shipowners looking at the competitive pricing of LNG combined with its estimated 23pc GHG savings.
A steep jump in newbuild orders of LNG dual-fuelled vessels has pushed demand for the fuel globally, with shipowners seeing LNG as a transition fuel in their need to meet IMO and EU-led compliance requirements.
