Source: Maritime and Port Authority of Singapore.
Singapore is the world’s largest bunkering port, where more than 50 million tons of bunkering fuels are sold annually. Its strategic location at the onset of the Strait of Malacca and its extensive petrochemical sectors make it one of the most suitable locations for bunkering. Before the regulations implemented in 2020 by the International Maritime Organization limiting the sulfur content of bunker fuels within emission control areas encompassing access to major ports in Europe and North America, Marine Fuel Oil (MFO) was the most widely sold bunker with a 95% market share.
By 2020, the standard had become 0.5% sulfur content or less worldwide and 0.1% in emission control areas, triggering a substantial shift to bunker fuels with lower sulfur content, particularly Low Sulfur Fuel Oil (LSFO). While in 2020 the energy transition was substantial, with LFSO reaching a market share of 68%, this share noticeably declined afterward. By 2024, the share decreased to 54% while Low Sulfur Marine Gasoil (LSMGO) had a 7% market share. This decline is primarily attributed to the Red Sea Crisis, as ships circumnavigated the Cape of Good Hope and avoided the emerging emission control area in the Mediterranean. To save fuel costs, several shipping lines relied on marine fuel oil (IFO 180) instead of LSFO.