Middle East tensions disrupt fuel oil supplies hitting Asia's shipping costs
The escalation of conflict in the Middle East has disrupted fuel oil supplies, causing difficulties in securing alternative sources in Asian countries, Reuters reports.
According to the agency, around 3.7 million tonnes of fuel oil transit monthly through the Strait of Hormuz, with about 1.2 million tonnes destined for Asia, mainly Southeast Asia (approximately 70%). However, tanker transits have dropped by roughly 90% compared to last week. As a result, bunker fuel prices at the Singapore port have risen by over 40%, and low-sulphur fuel prices by nearly 30%. This increase leads to higher refuelling costs for vessels and consequently raises transport expenses.
The situation may further drive up prices and complicate shipping operations if tensions in the region are not eased promptly.
