According to FreightWaves, container shipping fuel prices remain at historically elevated levels, with Singapore’s very-low-sulphur fuel oil (VLSFO) climbing from $433.50 per metric ton on Jan. 1 to $878.50 per ton by Sept. 11, a rise of more than 100%.
Bunker price volatility intensifies despite easing supply constraints
While the acute marine-fuel shortage observed in March and April has abated, bunker prices continue to exert pressure on vessel operating costs. In Singapore — the world’s largest bunkering center — VLSFO was assessed at $908 per metric ton this week, while marine gasoil (MGO) stood at $1,448 per ton and high-sulphur fuel oil at $770 per ton, according to analyst Ship & Bunker.
Regional differentials persist: VLSFO in Rotterdam traded at $731 per ton, compared with $804 per ton in Houston and $1,005 per ton in Fujairah, United Arab Emirates. The premium at Fujairah reflects ongoing constrained traffic and supply-chain disruption around the Strait of Hormuz.
Industry comments reported from the Asia Pacific Petroleum Conference indicate that bunkering activity at Fujairah has recovered to about 40% of its prewar level, still well below normal operations.
Fuel cost impact varies by vessel age and trade lane
The St. Louis Fed estimated that the early-2026 fuel shock increased fuel cost on a typical China–U.S. West Coast voyage from $155 to $269 per 20-foot container for a newer ship, and from $360 to $626 per container for an older vessel. This differential underscores how fleet age magnifies exposure to fuel volatility.
Meanwhile, Brent crude oil rose above $107 per barrel on Sept. 14, driven by fears of renewed violence in the Red Sea and Strait of Hormuz. Disruption to tanker traffic and constrained access to Gulf-origin crude and fuel-oil feedstocks have tightened the marine fuel market.
Refiners are shifting focus toward higher-margin gasoline and diesel, threatening availability of blending components required to produce specification-compliant VLSFO — especially in Asia, which depends heavily on Gulf supply flows.
Outlook shifts from scarcity to pricing uncertainty
Ship & Bunker last week raised its expected average price for a 20-port VLSFO benchmark to $758 per ton in the fourth quarter, up from a prior estimate of $646 per ton. It projected Singapore VLSFO would average $720 per ton in Q4 — though current outright prices remain materially higher than that forecast.
Market observers cite preliminary ship-tracking data showing that 10 to 15 commodity vessels a day still use the Omani corridor on the southern side of Hormuz, though transits fell to single digits during the past weekend.
The result is a structural shift: operators can generally secure fuel, but face substantially higher costs and less certainty about regional price differentials — affecting container lines, tanker owners, bulk carriers, and ship managers alike.
Source: FreightWaves
Compiled from international media by the SCI.AI editorial team.
