VPS Warns of ‘Perfect Storm’ as Bunker Prices Surge Alongside Fuel Quality Decline

Marine fuel buyers are facing a combination of record-high bunker prices and deteriorating fuel quality, according to Ship & Bunker, which published an analysis authored by Steve Bee, Group Marketing & Strategic Projects Director at VPS.

According to the report, VPS has observed a marked rise in fuel quality issues across the traditional marine fossil fuel supply chain, with the Middle East conflict cited as a major factor driving both price volatility and quality deterioration.

Bunker Alerts Surge in 2026

Ship & Bunker reports that VPS issued 29 Bunker Alerts between January and July 2026 alone, a figure already surpassing the total issued throughout 2024 and closing in on the 37 alerts recorded across all of 2025. Of these alerts, 72% were linked to a combination of abrasive issues from elevated cat-fines and fuel stability problems, according to the report.

The ports where cat-fines and/or stability-related bunker alerts were recorded include ARA, Balboa, Busan, Callao, Hamburg, Houston, Las Palmas, Philadelphia, Piraeus, Rotterdam, San Roque, Singapore and Valencia, Ship & Bunker notes. Notably, marine gas oil did not account for a single alert in this period, with HSFO and VLSFO identified as the fuels dominating the warnings.

Off-Specification Rates by Fuel Type

According to the data cited in the report, off-specification rates for at least one ISO 8217 test parameter currently stand at 8.87% for HSFO, 9.88% for VLSFO, 9.03% for MGO, and 19.58% for ULSFO.

The report emphasizes that ISO 8217 compliance at the point of custody transfer does not guarantee a fuel can be used without operational difficulties throughout its onboard lifecycle, pointing to storage, treatment, and consumption in engines, generators, and boilers as factors influencing fuel condition.

Compliant Fuels Still Causing Claims

Ship & Bunker’s report also references a LinkedIn post from marine and energy consultants Brookes Bell, which stated that a P&I Club reported bunker-related claims up 50% this year, with many of the fuels involved having technically passed ISO 8217 testing. The Brookes Bell post reportedly noted that some ISO 8217-compliant fuels have still caused operational damage, leaving shipowners to manage complex evidentiary disputes.

In response, VPS points to its Additional Protection Service (APS) test bundles, including the Fuel System Check for monitoring purifier efficiency against cat-fines, Separability Number testing to complement hot filtration stability tests, Wax Appearance Temperature testing for cold-flow information, and chemical screening services to detect harmful substances before combustion, according to the report.

Does This Matter to You?

The trends described in this report may be relevant for those monitoring fuel procurement, onboard fuel management, and claims exposure. Rising bunker alert frequency and off-specification rates, particularly for HSFO and VLSFO, could factor into decisions around fuel testing protocols and onboard handling procedures. The report’s reference to a 50% rise in bunker-related claims, even among ISO 8217-compliant fuels, may be of interest to those managing risk exposure or evidentiary processes following fuel-related incidents. The specific operational or commercial impact will vary by fleet and route, and the source material does not provide further detail on individual company responses beyond the testing services VPS offers.

Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.

Sources: Ship & Bunker

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