Bunker claims surge 50% as concerns over fuel quality risks grow

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Bunker claims surge 50% as concerns over fuel quality risks grow

Between January and May 2026, Gard recorded more than 70 bunker-related claims, marking a 50% increase compared with the same period last year. The increase highlights a growing trend in both the number and complexity of bunker-related incidents. As highlighted in the “Beyond Specification: Bunker Claims Insights in early 2026” report from Gard, data from the first five months of 2026 shows a notable rise in claims between January and February and the period from March to May, coinciding with increased regional uncertainty and pressure across global fuel supply chains.

While the rise in claims does not directly confirm that geopolitical tensions are the primary cause, it reflects a market facing greater operational challenges. Changes in fuel-blending practices, shifts in sourcing strategies, and tighter fuel availability are among the factors contributing to a more challenging bunker quality environment.

Industry experts and fuel testing laboratories have also warned that current market conditions could encourage the use of lower-cost blend components, increasing the risk of fuel quality issues and a further rise in bunker-related disputes.

Key findings

  • Sharp rise in bunker claims and geopolitics: Bunker-related claims increased significantly in early 2026, with over 70 cases recorded – a 50% rise compared to 2025. Most claims involved fuel quality, with a noticeable uptick following the escalation of the Middle East conflict.
  • Global risk profile with concentration driven by supply volumes: Bunker quality incidents were recorded worldwide, reflecting a broadly dispersed and global risk environment rather than a localized issue. Higher numbers of claims at major hubs such as Singapore, Houston, and ARA mainly reflect their large bunkering volumes.
  • VLSFO remains the primary source of claims: Very Low Sulphur Fuel Oil (VLSFO) accounts for the vast majority of bunker quality claims. Its complex blended nature increases the likelihood of variability and contamination, making it more prone to quality issues. This reinforces that VLSFO continues to be the key technical risk area in marine fuel usage.
  • ISO 8217 compliance does not guarantee fuel suitability: A significant proportion of cases involved fuels that met ISO 8217 parameters but still caused operational issues and damage to machinery. This underscores the growing importance of Clause 5, which focuses on whether fuel is fit for use and free from harmful substances. Standard testing alone is often insufficient, requiring more advanced analysis to identify problematic contaminants.
  • Claims are driven by both technical and contractual challenges: Bunker disputes are often complex due to misaligned contractual relationships between owners, charterers, and suppliers. Issues related to binding sample, parameter(s) to be tested, time bars and evidentiary requirements frequently complicate claims resolution.
  • Operational impact is often underestimated compared to headline casualties: While no major casualties were directly linked to poor fuel in this dataset, several vessels were disabled or required towage. These incidents can create high exposure when occurring in congested or coastal waters.

The absence of catastrophic outcomes should not obscure the underlying operational risk.

Types of fuels with quality claims

VLSFO accounted for over 85% of all bunker-related claims recorded during the first five months of 2026, with significantly fewer cases involving LSMGO and HSFO. This distribution aligns with prevailing market practices, as VLSFO remains the primary marine fuel following the implementation of the global sulphur cap in 2020.

The concentration of incidents within the VLSFO segment is also consistent with the inherent technical challenges of the fuel. VLSFO is often a complex blend of multiple components, which increases the risk of compositional variability and the potential for unusual chemical contaminants.

Consequently, while fuel quality disputes can occur across all grades, VLSFO remains the primary area of exposure for the industry. Looking at the VPS off-specification data for Jan-May 2026, globally 8.8% of fuels are off-specification for at least one test parameter.

Read the report: Beyond Specification: Bunker Claims Insights in early 2026