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IBIA: Change in bunkering activity – Red Sea attacks on commercial shipping

Red Sea crisis that developed in Q4 of 2023 has caused some significant and continuing shifts in both global demand patterns and pricing, says Tahra Sergeant of IBIA.

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Tahra Sergeant, International Bunker Industry Association’s (IBIA) Regional Manager of Africa and Global Head of Events, on Monday (1 July) shared on how the Red Sea crisis has reshaped global bunkering demand, particularly in Africa, Singapore, European ports and New York.

The following are excerpts of the article by Sergeant: 

The continued attacks on commercial shipping in the Red Sea have impacted the overall size and patterns of global bunker demand. In simplest terms increased distances travelled and increased speeds have added somewhere between 800,000 and 1,000,000 metric tons per month to global bunker demand. The bunker supply industry has faced two challenges to increase overall supply volumes and to adjust location of bunker supply to reflect differing demand patterns.

Increases in bunkering activity, well outside normal fluctuations, continue to be seen at ports on the African coastline, offshore Africa and Islands close to the Africa Continent. A predictable decrease in bunkering activity has been seen in supply ports of the Eastern Mediterranean. Further significant demand increases are felt at Asian ports (particularly) Singapore, European ports (particularly ARA (Amsterdam, Rotterdam and Antwerp) and Algeciras) and even at New York on the US East Coast.

Overall, the bunker supply industry has been able to both add volume and absorb these shifts in demand although this has not been without its challenges. Ports needed to quickly increase supply with uncertainty over future demand and notably as South Africa market has had to deal with specific localized supply challenges.

This report summarises feedback from various industry sources, focusing on the magnitude of bunker sales, the ability to quantify these changes, supply challenges, and future demand expectations:

Impact on bunker demand:

Africa:

Mauritius (Port Louis): The strategic position of Mauritius makes the island an important bunkering location. Demand for bunkers for most of 2023 was approximately 30,000 metric tons per month which has now increased in Q1 2024 to 60,000 to 65,000 metric tons per month.  

Mozambique: Maputo, Nacala and offshore Mozambique Channel:  Bunker volumes in these locations were limited for most of 2023 but have now anecdotally significantly increased.

South Africa: For the majority of 2023 South African bunker volumes were approximately 130,000 metric tons per month. In the crucial period of Q1 2024 this volume has unfortunately dropped to 80,000 metric tons as explained below.

  • Durban and Richards Bay: Traditionally were significant bunker locations on South African Coast but impacted by local refinery closures.  Limited ability to increase volume.
  • Algoa Bay:  Supplied between 60,000 to 70,000 metric tons per month until Q4 2023 when supply was shut down because of tax and licensing dispute with South African authorities.  This supply location remains inactive and is a major loss for South African bunker supply options.  
  • Cape Town: 2023, limited supply from Astron Refinery.  Demand in 2024 for bunkers supply in Cape Town has increased to approximately 40,000 metric tons per month. With a surplus.

Namibia:  Walvis Bay was a low to medium volume supply location in 2023 with demand reportedly doubling by Q1 2024

West African (WAF) Offshore Supply:  Significant volumes of bunkers are supplied in lightering locations off major West African ports.  These locations are not ideally suited for ships diverting around Africa.  Early 2023 bunker volumes were approximately 210,000 metric tons per month, Q1 2024 closer to 250,000 metric tons.

Europe:

Canary Islands (Spain):  Strategically located off the coast of Africa the Canary Islands has seen bunker demand increase from 315,000 metric tons per month in early 2023 to 370,000 metric tons per month in Q1 2024

Algeciras (Spain):  2023 demand increased from 270,000 metric tons per month to 300,000 metric tons per month in Q1 2024.  However, the western Mediterranean is largely unchanged in demand as ports such as Gibraltar have lost some demand.

Eastern Mediterranean:  Reportedly, demand is down in all locations but limited hard statistical data is available to support this conclusion.  

ARA (Amsterdam, Rotterdam and Antwerp):  Demand has risen from 1.45 million metric tons in 2023 to 1.58 million metric tons in Q1 2024.

North America:

New York: Demand has risen from 350,000 metric tons per month in 2023 to 400,000 metric tons per month in Q1 2024 due to container services usually transiting the Mediterranean not diverting around Africa.

Asia

Singapore: Demand has risen from 4.23 million metric tons per month in 2023 to 4.62 million metric tons per month in Q1 2024.  Singapore has absorbed 40% of the increased demand created by the Red Sea crisis.

Conclusions

The Red Sea crisis that developed in Q4 of 2023 has caused some significant and continuing shifts in both demand patterns and pricing. 

The existing fossil fuel based bunker supply industry and the buyers of bunkers have a well-proven and cooperative ability to adjust to supply and price disruptions whether created by regulation, geopolitical tensions or natural occurrences.

These adjustments are at times challenging and can be damaging or beneficial to different supply locations.

Prices will rise, perhaps to modify over time, but shifts in demand will be recognised and covered. The energy transition within shipping provides potentially more significant challenges in that new lower GHG fuels will at first only be available in limited ports and smaller volumes. Geopolitical disruption may be more challenging to the future bunker supply chain.

Note: The full article by IBIA’s Tahra Sergeant can be found here.

 

Photo credit: International Bunker Industry Association
Published: 5 July, 2024

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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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