Bunker fuel sales in Singapore have reached record highs as ships take longer routes around the southern tip of Africa to avoid the Red Sea, the U.S. Energy Information Administration said on Wednesday.
The reroutings come in direct response to attacks from Yemen-based Houthi militia that began in November 2023.
The new routes, which often involve rounding Africa’s Cape of Good Hope, add thousands of miles and weeks of travel time.
Consequently, the number of ships transiting the Suez Canal has decreased by about half compared to a year ago. Data from the International Monetary Fund’s Portwatch tool show a decrease from around 75 vessels to about 35 compared with the same time period a year ago.
According to the Maritime and Port Authority of Singapore, bunker fuel sales in Singapore, the world’s largest bunkering port, have increased year over year from December 2023 through the first quarter of 2024. The surge reached an all-time high in December 2023, with more fuel being sold in Singapore than in any other port worldwide.
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Singapore has issued its clearest warning yet over the growing presence of sanctioned “shadow fleet” tankers operating near the Straits of Malacca and Singapore, calling for stronger international cooperation as aging vessels exploit legal grey zones just beyond territorial waters.
Global container shipping rates fell for a fourth consecutive week as the traditional pre-Lunar New Year cargo surge failed to materialize. Spot rates dropped across all major trade lanes, prompting carriers to announce an unusually large wave of blank sailings as uncertainty over demand and Suez Canal transits continues to cloud the market outlook.
Maersk slipped into a rare quarterly loss in its Ocean division as freight rates weakened and the container giant began a cautious return to Red Sea and Suez Canal transits. The setback underscores the financial strain facing carriers as overcapacity collides with the end of Cape of Good Hope diversions.
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