Ships divert in hunt for fuel after Gulf conflict hits supplies

Shipping companies are diverting vessels and absorbing longer delays as a conflict-driven squeeze on bunker fuel ripples through key refuelling hubs in the Middle East and Asia.

Executives told the Financial Times that ships are now waiting up to 10 to 12 days to refuel in Singapore or Fujairah, compared with a normal wait of about two to three days. In some cases, owners are sending ships on longer routes or changing schedules simply to secure fuel.

The disruption comes even after a ceasefire deal, underscoring how shipping logistics can remain strained long after fighting eases. The shortage is hitting very low sulphur fuel oil, a common bunker fuel used by many vessels.

Diverting to find fuel

Semiramis Paliou, chief executive of Diana Shipping, said the company had diverted vessels from Japan to Korea at least twice in recent weeks to find fuel.

Costas Delaportas, chief executive of DryDel Shipping, said his vessels had also been forced to alter routes. DryDel diverted from east India to Singapore because it was not sure enough fuel would be available.

The longer waits are a direct operating burden. Delaportas said ships were waiting 10 to 12 days to refuel in Singapore or Fujairah, far longer than the usual two to three days.

Those delays add miles, time and expense, and can push ships off their planned schedules for cargo delivery, charter commitments and onward port calls.

Why Fujairah is tight

The strain is especially acute in Fujairah, one of the region's key bunkering hubs just outside the Strait of Hormuz. The article says the conflict disrupted imports of feedstock and supply from Kuwait's al-Zour refinery, tightening the market for bunker fuel.

Argus said most major bunker suppliers in Fujairah had pulled out of the market for the first half of June. It also said Fujairah bunker fuel prices reached a record $1,495 per tonne on June 3, a $714 premium to Singapore.

That gap matters because Fujairah is a major stop for vessels moving through one of the world's busiest maritime routes. When supply thins there, ships may need to travel farther, wait longer or pay up to secure fuel elsewhere.

Fuel quality and cost pressure

The disruption is not only about price. Paliou said fuel supplied to ships has sometimes been poor enough to require testing and debunkering.

Delaportas said his ships had been forced to offload fuel very regularly in recent weeks. That process adds another layer of cost and delay on top of the original shortage.

For shipowners, the squeeze compounds several pressures at once: higher bunker bills, longer voyages, schedule disruption and the operational risk of taking fuel that may not meet standards.

Wider shipping impact

The shortages are a reminder that conflict in the Gulf can quickly spread through the shipping system, affecting port calls, refuelling plans and voyage timing far beyond the immediate conflict zone.

Earlier Associated Press reporting in May had already warned that the Iran war was squeezing bunker-fuel supply, particularly around Singapore, and pushing up costs. A Wall Street Journal report also said several fuel suppliers in Fujairah had effectively closed or invoked force majeure amid regional tensions.

Bunker-fuel disruption can also ripple into broader supply chains because ships carry most traded goods by sea. Higher fuel costs can eventually feed into freight rates and, in time, price pressure for cargo owners and consumers.

What to watch next

The main question is how long the disruption lasts. The next signs to watch are whether bunker availability in Fujairah improves through June, whether more operators reroute to alternative ports and whether the premium over Singapore remains elevated.

For now, the market is still operating under strain. Even with a ceasefire in place, shipping executives say the conflict has left a lingering fuel squeeze that is forcing vessels to move farther, wait longer and pay more to keep sailing.