Severe bunker supply tightness at Fujairah is not expected to ease before mid-July, with cargo arrivals remaining extremely limited and premiums holding at historically elevated levels, according to global trading firm Dan-Bunkering.
First VLSFO Cargo in Over Two Months
In its weekly market report, Dan-Bunkering noted that only a single VLSFO cargo arrived at Fujairah this week — the first delivery in more than two months. Despite the arrival, the firm described it as a small parcel, insufficient to meaningfully relieve the supply shortage that has gripped the port.
“Bunker premiums are still very high as cargoes remain very limited, with most suppliers still dry of product,” Dan-Bunkering stated, as cited by Ship & Bunker.
A separate source speaking to Ship & Bunker on Wednesday corroborated the assessment, noting that only a handful of suppliers across Fujairah and Khor Fakkan retain any product, and that scarcity is driving premiums higher.
Iran Conflict Disrupting Cargo Flows
According to the source cited by Ship & Bunker, suppliers have been struggling to receive cargo due to the ongoing Iran conflict, which has severely disrupted normal cargo routing in the region.
While bunker demand has ticked upward amid expectations that the Strait of Hormuz could reopen, product availability has not kept pace. Dan-Bunkering warned that if vessels currently waiting outside the region return and begin lifting bunkers simultaneously, available volumes may fall well short of demand.
The firm advised shipowners and operators planning to bunker at Gulf ports to allow additional lead time and secure fuel requirements well ahead of their expected arrival.
VLSFO Prices at Extreme Premium
Ship & Bunker had previously reported that critically low VLSFO availability had pushed Fujairah prices to record levels. According to Ship & Bunker’s pricing data, Fujairah’s VLSFO reached a high of $1,275/mt before easing to $1,209/mt on Tuesday, partly in response to falling crude prices following a preliminary US-Iran deal announcement.
Even with that pullback, the price differential remains stark. Fujairah’s VLSFO was trading at a premium of $554/mt over Singapore and $611/mt over Rotterdam on Tuesday, according to Ship & Bunker. This is a sharp contrast to April, when Fujairah’s VLSFO traded at a much narrower premium — or sometimes at parity — with Singapore.
Does This Matter to You?
The sustained supply disruption at one of the world’s most strategically important bunkering hubs carries significant implications across the maritime supply chain. Constrained availability, record-level premiums, and uncertain cargo arrival timelines all point to a market where advanced planning and flexibility are essential. The risk of demand spikes upon a potential Strait of Hormuz reopening adds another layer of uncertainty for those with vessels currently positioned outside the region.
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
