Singapore is the world's second-largest bunkering hub. BDI, VLCC rates and Brent crude drive SGX shipping stocks — and the Hormuz crisis has made this sector the most volatile on SGX.
Singapore handles over 37 million TEUs of container cargo annually and is the second-largest bunkering port globally. SGX-listed shipping stocks are therefore highly sensitive to global trade volumes, freight rates and commodity flows — making BDI, VLCC rates and the SCFI the key signals.
The Hormuz crisis (February–April 2026) was an extraordinary period for SGX shipping stocks. VLCC rates spiked from $40k/day to over $280k/day as rerouting around the Cape of Good Hope added 2–3 weeks to Middle East voyages. Yangzijiang saw its orderbook surge as shipowners rushed to order new tonnage.
With Hormuz reopening today (17 April), VLCC rates are likely to fall from the $120–280k crisis range toward $40–60k over the coming weeks. This is negative for tanker owners but positive for the broader economy. BDI at 2,095 is mid-cycle — neither the distressed 800-1,000 that signals a screaming buy, nor the 3,000+ that signals peak.
The Hormuz crisis triggered the largest VLCC ordering wave since 2008. Yangzijiang Shipbuilding — one of Asia's largest private shipbuilders — has benefited enormously from this, with an orderbook that extends 3+ years. Newbuilding backlogs typically support share prices even after rate normalisation.
For informational purposes only. Not financial advice. See disclaimer.