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Integr8 Fuels: Can bunkering outside hubs yield better pricing?

Current low bunker price environment and high tanker rates are temporary and once the situation normalises, more attention will go to increasing voyage earnings.

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[vc_row][vc_column][vc_column_text]Integr8 Fuels, the bunker trading and brokerage arm of Navig8, on Tuesday (28 April) published an analysis on factors to consider when selecting a bunker port to optimise voyage savings; it was written by Senior Research Analyst, Anton Shamray: 

The short answer is yes, but not always. Continuous price monitoring is key to identifying price dislocations between different ports.

Overview

The world is currently going through a very turbulent time with oil prices recently falling to the multi-decade lows. Bunker fuel expenses, once being the dominant part of the voyage costs, have for now become somewhat less important, particularly in the tanker market, where freight rates skyrocketed and avoiding delays has taken priority.

However, this low bunker price environment and/or high tanker rates are temporary and once the situation goes back to ‘normal’, more attention will again be paid to reducing the bunker bill to increase voyage earnings.

There are a number of ways that can help and one of these is to be open-minded about the bunkering location, which at times may mean refuelling outside of the major hubs if prices dictate so.

Bunker-only calls no longer a feature of hub ports

The bunker market has transformed extensively in the past couple of decades. From a limited number of bunker-only ports (mostly hubs), many more are now open for bunker-only calls.

As an example, Figure 1 shows both the hubs and the secondary bunker-only locations in the Mediterranean together with vessel traffic.

As can be seen, in addition to the main hubs bunkers can now be picked up in some smaller ports like Lisbon, Sarroch, Augusta, Piraeus as well as Kali Limenes and off-shore in the South Eastern part of the Mediterranean, pricing for which can be obtained on enquiry. Therefore, it is important to monitor prices not only in the hub ports but also in the smaller locations.

The price, of course, is not the only factor to consider. Quality, availability, weather and other delays together with calling costs can influence the bunker location choice. However, with these factors often being equal or near equal, the port and supplier offering the best price usually gets the stem.

Cheapest price not only in hubs

While bunker hubs often mean a higher number of suppliers, better availability and pricing, this is not always the case, particularly following the transition to VLSFO as the main compliant fuel.

The chart above shows an example of what the ‘normal’ bunker pricing would look like. Just over a year ago, in February 2019, a buyer or an operator of a vessel needing bunkers passing through the Mediterranean would habitually enquire in Gibraltar or Malta and typically get the best price compared with the alternatives.

Then the market started changing prior to the IMO2020 transition so the usual pricing relationships between ports were broken. HSFO in some hubs started to sell at hefty premiums to the secondary ports. The bottom chart on Figure 2 shows the $40/mt premium Malta attracted over neighbouring Augusta in early October 2019, potentially resulting in a $20,000 overpayment on a 500mt stem.

From 01 January 2020, with the market fully transitioning to VLSFO as the main compliant fuel, price distortions spiked. For a period of time and due to the very limited availability, Singapore VLSFO was pricing way above anywhere in the region and even above LSMGO. While the bunker market has largely settled, certain pricing dislocations have remained.

Figure 3 shows a couple of recent VLSFO price dislocation cases and the emergence of Lisbon as a viable and often well-priced alternative, which has so far in April on average traded at a $20/mt discount to Gibraltar.

Excluding Lisbon, on 20 March 2020 it was ‘business as usual’ with both Gibraltar and Malta priced at a discount to other ports. However just over a month on, VLSFO prices dropped across the board following the drop in oil prices, although VLSFO in Gibraltar remained relatively strong.

It is estimated that booking a 500mt stem in Gibraltar vs Malta or Lisbon on 22 Apr 2020 would have resulted in at least $10,000 in overpayment. Besides this, Piraeus would have also become a viable option for vessels sailing from the North East of the Mediterranean.

Overall, it is worth noting that bunker prices fluctuate on a daily basis and bunker ports (including hubs) may frequently move from ‘expensive’ to ‘cheap’. Such price movements as well as delays, fuel quality, and changes in port call costs should be closely monitored in order to select the most optimal bunker port, achieve bunker bill savings and increase voyage revenues.


Photo credit and source:
Integr8 Fuels
Published: 29 April, 2020[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_gallery type=”image_grid” images=”9821,9822,9823,9824″ title=”Additional Information”][/vc_column][/vc_row]

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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