By Enes Tunagur
LONDON (Reuters) – Global marine fuel sales jumped in 2024 after attacks by Yemen’s Houthis starting in late 2023 prompted most shipping companies to divert vessels around southern Africa rather than through the Red Sea, according to data and analysts.
Singapore bunker volumes logged fresh highs of 54.92 million metric tons in 2024, or about 955,000 barrels per day (bpd), while sales at United Arab Emirates’ Fujairah posted the first annual uptick after a downtrend for several years.
Rotterdam marine fuel sales, also called bunker fuel, rose 12% in the first quarter of 2024 to 2.16 million tons, or about 38,000 bpd from the previous three months, according to Rotterdam port authority data, and held above that level for the rest of 2024.
“Diversions have indeed increased tonne mileage due to longer routes which has boosted demand for fuels in ships,” said Aldo Spanjer of BNP Paribas.
In January, the Houthis announced they would only attack Israeli-linked ships following the ceasefire in Gaza, heightening hopes of a return to the Red Sea and Suez Canal.
The return of northbound transits through the Suez Canal would reduce bunker fuel demand, said BNP Paribas’ Spanjer and FGE analyst Stephen Brennock, but shipping executives remain cautious over returning to navigation through the Red Sea route to the Suez Canal.
The rebound in Rotterdam marine fuel sales in the first quarter was mostly owing to firm demand for high sulphur fuel oil (HSFO) from larger vessels, analysts said.
Overall Rotterdam bunker sales fell by 1% in 2024 year-on-year to 9.06 million tons, or 158,000 bpd, weighed down by weaker demand for very low sulphur fuel oil.
(Reporting by Enes Tunagur; additional reporting by Jeslyn Lerh; editing by Alex Lawler and Emelia Sithole-Matarise)
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