Marine fuel sales decline due to trade tensions

Sales of marine fuel at major refueling hubs are declining due to rising geopolitical tensions and tariffs. Industry sources report that marine fuel sales in Singapore and Fujairah, the largest and third-largest refueling locations, dropped to 9.78 million tons in the first two months of this year. This reflects a 9% decrease compared to the same period last year. Experts say the slowdown in demand is linked to lower economic activity and freight rates. Shipping companies are adjusting their operations more cautiously amid unstable tariff situations. The head of a container trading platform noted that the drop in marine fuel demand highlights broader concerns in global trade. One trader expressed confusion about the decline in fuel demand. Normally, if demand falls in one hub like Singapore, it tends to rise in others. However, that pattern has not been seen this time. Last year, marine fuel demand increased because many shipping companies took longer journeys to avoid risky areas like the Red Sea, where commercial vessels faced threats. This year’s changes in demand are much less predictable.