Maersk imposes emergency fuel surcharge as Middle East war disrupts shipping fuel supply

THE ongoing conflict in the Middle East has thrown global marine fuel markets into turmoil, driving up prices and creating supply shortages in key regions. In response, traders are increasingly redirecting fuel shipments to major bunkering hubs outside the region, sometimes even sacrificing cargo space to move additional fuel volumes.

Fuel oil prices have climbed sharply this month, largely due to disruptions at the Strait of Hormuz, where stalled tanker traffic has tightened supplies to Asia, the world’s primary bunkering centre for shipping fuel, Oilprice.com said.

As a major exporter of fuel oil, particularly high-sulfur fuel oil (HSFO), the Middle East plays a critical role in global supply. However, the conflict involving Iran has severely curtailed traffic through the Strait of Hormuz, leaving Asian markets, especially Singapore, scrambling for supply.

Despite this disruption, fuel stockpiles in Singapore have risen in recent weeks as shipowners delay purchases amid high prices. Analysts warn, however, that these reserves could quickly diminish as vessels eventually return to refuel out of necessity.

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Some traders have already begun adjusting operations. One market participant revealed that their firm had to drop cargo commitments in order to transport additional fuel between key ports, notably along routes linking the United States and Singapore.

The situation has been worsened by the near shutdown of Fujairah, the Middle East’s key bunkering hub, following Iranian attacks earlier in the month. By late March, the port was largely offline, further destabilising marine fuel supply chains.

In an advisory to customers, Maersk said it has been forced to reconfigure its fuel logistics network, sourcing supplies from alternative locations at higher costs to maintain operations.

To offset these rising costs, the shipping giant introduced an Emergency Bunker Surcharge (EBS) effective March 25, citing volatility in fuel availability and increased distribution expenses.

Maersk’s Chief Commercial Officer, Mr Karsten Kildahl, noted that while global fuel supply remains adequate overall, distribution has become uneven. He explained that the company is actively repositioning fuel supplies to ensure vessels can continue refuelling and global trade flows remain uninterrupted.