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Bunker Holding, the world’s largest marine fuels company, is actively developing alternative bunker supply options outside the Arabian Gulf after escalating regional tensions began disrupting vessel movements, insurance availability, and fuel pricing as of early March.
The company’s Group CEO, Peder Møller, confirmed the shift in a LinkedIn post on Monday, describing conditions across the Arabian Gulf as “mixed and changing fast” while vessel traffic through the Strait of Hormuz has fallen sharply as operators hold back.
Insurance Withdrawals and Rate Pressure Add to Strain
The operational disruption extends into financial markets. Oil prices have moved up sharply, tanker rates have risen, and some war-risk insurers began withdrawing cover for parts of the region from March 5, Møller said.
The withdrawal of war-risk cover is a significant development for the industry. War-risk insurance is a specialist product that covers vessels operating in designated high-risk zones. When insurers pull back, shipowners face a binary choice: proceed without cover at potential violation of financing covenants, or divert away from the affected area entirely.
“That naturally adds pressure across the supply chain and increases uncertainty for everyone operating in the market,” Møller wrote.
The Strait of Hormuz, which connects the Arabian Gulf to the Gulf of Oman and the wider Indian Ocean, is one of the world’s most critical maritime chokepoints. Roughly 20 percent of global oil shipments pass through it annually, along with substantial volumes of liquefied natural gas and other commodities. Any sustained reduction in transit activity carries immediate consequences for bunker fuel availability, tanker earnings, and regional energy supply chains.
Safety of Staff Remains the First Priority
Møller stated that the company’s immediate focus is the safety of its employees in the region, particularly those based in the UAE.
“In a situation like this, our job is to stay close to the market and be useful to our customers,” he said.
Bunker Holding is already working through alternative supply arrangements to maintain continuity for customers who rely on Arabian Gulf bunkering hubs, including Fujairah, one of the world’s busiest marine fuel supply ports. Fujairah sits on the eastern coast of the UAE, outside the Strait of Hormuz, and has historically attracted vessel calls precisely because it allows ships to bunker without transiting the strait. However, broader regional uncertainty now affects even ports in that corridor.
Market Described as Unusually Fluid
While Møller stopped short of declaring a full market disruption, his language pointed to conditions well outside normal operating parameters.
He described the situation as “unusually fluid” and requiring constant attention, while noting that the market remains technically open.
The use of the phrase “unusually fluid” carries weight from a company with the scale and market reach of Bunker Holding. The group operates across more than 120 countries and supplies millions of tonnes of marine fuel annually, giving it early visibility into shifts that smaller operators may not yet detect.
For carriers, forwarders, and shippers with voyages scheduled through the Arabian Gulf in the coming weeks, the core near-term risk is a narrowing window of reliable bunkering options combined with rising costs and reduced insurance flexibility.
Whether the alternative supply corridors Bunker Holding is developing prove sufficient to absorb displaced demand will depend heavily on how quickly the regional situation stabilises, and how many other major suppliers move in the same direction.
