Security concerns have led some suppliers to suspend bunker deliveries at the major UAE marine fuel hub. Image Credit: Port of Fujairah

Iranian attacks on the UAE have begun disrupting bunkering activity in Fujairah, the world’s third-largest marine fuels hub, including a fire at the Fujairah Oil Industry Zone (FOIZ) on Tuesday, caused by drone intercept debris.

Some bunker orders have been cancelled since the conflict broke out over the weekend, and some suppliers have declared force majeure, sources told Ship & Bunker on Wednesday.

Port operations in Fujairah appear to run normally, but several suppliers are holding back on bunker deliveries due to security risks, a source said.

Some suppliers have opted to halt deliveries as a precautionary step and are avoiding quoting offers, a trader said.

Sinopec, Bakri International Energy and Mediterranean Eastern Enterprise have completely paused operations, sources said, while OMTI and ABC Bunkering are reported to have limited supplies available.

"However, overall we are still executing supplies safely, both by barge and truck, albeit at remarkably high prices," one local trader said.

Analytics firm Spotbarge, which analyses bunkering activity using AIS data and other sources, told Ship & Bunker on Tuesday it was seeing a significant drop in bunkering activity at the port.

"I think 70-80% of the bunker barges went offline," Sebastiaan Kosman, the company's founder, said.

Some sources fear that if the conflict extends further, it could cause further disruption.

A trader also told Ship & Bunker that truck deliveries in nearby Khor Fakkan have been facing challenges.

According to Ship & Bunker data, Fujairah’s VLSFO price has spiked by $109/mt since Friday to $629/mt on Tuesday, largely due to an increase in underlying crude values.