Fujairah, one of the UAE’s most critical maritime hubs, has seen a noticeable slowdown in refuelling activity this year. Bunker fuel sales at the port fell 5% in the first half, signalling shifts in global shipping dynamics and regional trade patterns.
The port, located near the entrance to the Strait of Hormuz, remains essential for vessels transporting crude oil and other goods out of the Gulf. From January to June, bunker fuel volumes totaled 3.7 million cubic meters. This figure dropped from 3.9 million cubic meters during the same period last year.
June marked the weakest month of the year so far, with bunker fuel sales slipping to 563,000 cubic meters. This represents an 8% decline from May and a four-month low. Traders attribute the decline to geopolitical concerns that disrupted shipping activity across Gulf waters.
Earlier this year, tensions between Iran and Israel led shipping operators to adopt more cautious routes. While most ships continued transiting the Strait of Hormuz, they minimized time spent in nearby waters. This strategic move aimed to mitigate risk during periods of heightened uncertainty.
Despite these challenges, the UAE bunker sales market faced soft demand even before recent geopolitical events. Dubai-based traders noted that weaker global shipping volumes and rising competition from other refueling hubs pressured sales throughout the year.
Bunker price differentials remained narrow during this period. Both low-sulfur and high-sulfur fuel grades showed lower volumes compared to the previous year. The muted price activity discouraged aggressive purchases, contributing further to subdued sales figures.
Fujairah’s role in global shipping remains critical despite the short-term slowdown. The port’s strategic location near vital shipping lanes ensures a steady flow of vessels requiring fuel and services. However, operators must now navigate an environment shaped by geopolitical risks and shifting trade patterns.
Industry analysts believe the second half of the year could bring a moderate rebound. Global trade is slowly recovering, and easing regional tensions may restore confidence among shipping companies. Infrastructure upgrades planned for Fujairah may also enhance its appeal to international fleets.
The slowdown in UAE bunker sales highlights the complex interplay of global economics, energy demand, and security concerns. Investors and industry stakeholders continue to monitor these trends closely as they assess risks and opportunities in the region’s maritime and energy sectors
