The global shipping industry is facing significant challenges in sourcing bunker fuel following disruptions triggered by the ongoing conflict involving Iran, industry leaders have reported. Ships are experiencing prolonged delays of up to two weeks or are being forced to undertake lengthy detours to secure fuel, complicating logistics and increasing operational costs.

Semiramis Paliou, CEO of Diana Shipping, one of the world’s largest publicly traded dry bulk shipping companies, said that several vessels originally scheduled for refueling in Japan have had to divert to South Korea in recent weeks due to shortages. “Our charters are not always able to find the quantities [of fuel] that they are looking for or at the ports that the ships would be sailing to,” she noted.

Costas Delaportas, CEO of Athens-based DryDel Shipping, corroborated these concerns, indicating that some of his fleet had to wait between 10 and 12 days in key bunkering hubs such as Singapore and Fujairah, significantly longer than the usual two to three days. In some cases, vessels have rerouted from east India to Singapore to ensure adequate fuel supplies. Delaportas also highlighted emerging difficulties in obtaining lubricants necessary for engine operation, with some shipments receiving as little as 60 percent of their ordered quantities.

The supply strains are a direct consequence of the military conflict involving the US and Israel against Iran, which has disrupted established energy and shipping routes in the strategically vital Strait of Hormuz and the surrounding Gulf region. While tanker freight rates have surged to record highs amid the tensions, dry bulk carriers are incurring higher operational costs not only due to fuel scarcity but also increased expenses related to crew changes and logistics.

Despite a recent peace agreement between Iran and the US, which President Donald Trump has said will secure safe passage through the Strait of Hormuz, industry executives warn that the effects of the crisis are likely to linger for several months. The process of rerouting vessels and re-establishing supply chains out of the Gulf is expected to cause ongoing disruption.

The port of Fujairah, located on the Gulf of Oman near the Strait of Hormuz, was previously the world’s third-largest hub for ship refueling. It is now grappling with shortages of very low sulphur fuel oil (VLSFO), a widely used bunker fuel, due to interrupted imports and reduced supply from Kuwait’s Al-Zour refinery. Siew Hua Seah, head of marine fuels pricing at Argus, a pricing agency, reported that most major bunker suppliers in Fujairah have withdrawn from the market for at least the first half of June.

The fuel shortages and logistical hurdles underscore the complex ripple effects that the regional conflict is having across global maritime operations and commodity supply chains.