• Half of respondents cite high competition as biggest margin pressure
• Regulatory knock-on costs get nearly a quarter of vote
• Since the poll ended last month, the Middle East crisis has pushed bunker prices to multi-month highs.

High competition in major bunkering hubs is expected to be the biggest factor squeezing bunker supplier margins this year, according to the results of a poll conducted on Ship & Bunker’s LinkedIn page last month.

The poll asked readers what would place the most pressure on supplier margins at a time when bunker prices were widely expected to remain lower for longer.

Half of the respondents (50%) selected high competition in key ports as the main challenge for suppliers.

Regulatory knock-on costs came second, attracting 22% of the vote, highlighting concerns over the financial impact of tightening environmental rules.

Tariffs and changes in fuel demand accounted for 16% of responses, while 13% pointed to credit and counterparty risk as the biggest threat to supplier profitability.

Middle East Crisis Has Changed Market Dynamics

Market conditions have since shifted since the poll ended.

Crude prices have jumped following US and Israeli strikes on Iran last weekend, lifting bunker prices.

Ship & Bunker’s G20-VLSFO Index, which tracks VLSFO prices across 20 major bunkering ports, has risen to $659/mt, its highest level since April 2024.

The geopolitical tensions are also beginning to affect physical bunker demand in parts of the Middle East.

In Fujairah, the world’s third-largest bunkering location, bunker demand has started to soften as some vessels avoid routes through the Strait of Hormuz amid fears of potential Iranian retaliation.

Ship & Bunker reported on Wednesday that some suppliers in Fujairah have also declared force majeure and suspended bunker operations in response to the deteriorating security situation in the region.

An Iranian drone strike at the Fujairah Oil Industry Zone on Tuesday has further heightened concerns.

“The current situation in the UAE is not great for the bunker industry and the suppliers, especially in Fujairah, are experiencing certain issues after the attacks on the Fujairah Oil Terminal,” a UAE-based trader told Ship & Bunker on Thursday, when asked about the current situation in the market.