The following article regarding regional bunker fuel availability outlook for the East of Suez region has been provided by online marine fuels procurement platform ENGINE for publication on Singapore bunkering publication Manifold Times:
- VLSFO and HSFO supply is tight in Singapore
- VLSFO and HSFO availability improves in Zhoushan
- Availability good across all grades in several Sri Lankan ports
Singapore and Malaysia
VLSFO availability in Singapore remains tight due to “healthy demand,” with some suppliers facing low stock levels and terminal loading delays. Lead times of 10-15 days are recommended for VLSFO, nearly the same as last week.
HSFO supply is also under pressure, with lead times of more than two weeks recommended, although some suppliers can accommodate stems within 11 days, but these are typically priced higher, according to a source.
In contrast, LSMGO is more readily available, with lead times ranging from 2-6 days.
Data from Enterprise Singapore shows that residual fuel oil stocks in Singapore averaged 8% lower in September than in August, dropping below 18 million bbls despite a 28% rise in net fuel oil imports. Fuel oil imports decreased by 202,000 bbls, a smaller decline compared to the 898,000 bbls drop in exports. Middle distillate stocks at the port also fell, averaging 8% lower during the month.
In Malaysia's Port Klang, VLSFO and LSMGO supplies are plentiful, and some suppliers can offer prompt deliveries for smaller quantities. However, HSFO availability continues to be limited.
East Asia
In Zhoushan, improved VLSFO and HSFO availability, combined with low bunker demand, has reduced recommended lead times from 7-10 days last week, to 3-5 days now. LSMGO supply is normal in the port, with unchanged lead times of 3-5 days.
In Hong Kong, a lead time of about seven days is recommended for all fuel grades, which remains nearly the same as last week.
All Taiwanese ports have resumed full operations after disruptions from Typhoon Krathon last week. VLSFO and LSMGO supplies are stable in Hualien, Taichung and Keelung, with prompt lead times of 2-3 days, down from 4-5 days last week. However, congestion in Kaohsiung has stretched lead times to 4-5 days for both grades.
A source stated that tight barge availability has contributed to the tightening of all fuel grades in South Korean ports. In southern ports, VLSFO and LSMGO supplies have become tight, with recommended lead times increasing from 5-9 days last week to around 11 days now. However, some suppliers can still offer grades for prompt delivery dates, according to a trader. HSFO supply is also tight, with recommended lead times extending beyond two weeks.
In western South Korean ports, VLSFO and LSMGO lead times are advised at around 10-14 days, nearly unchanged from last week. Meanwhile, HSFO availability has improved, with lead times dropping from up to 15 days to around nine days now.
High waves are also forecasted to intermittently affect bunker operations at the ports of Ulsan, Onsan, Busan, and Yeosu throughout this week.
In Japan, LSMGO supply remains strong at major ports such as Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya, Yokkaichi, Mizushima, and Oita. VLSFO is widely available, though prompt supply is tight in Oita.
HSFO supply is a bit tight for prompt delivery dates in Oita. In the Tokyo Bay area ports of Tokyo, Chiba, Kawasaki, and Yokohama, HSFO supply has tightened due to technical issues at refineries. One refinery has halted HSFO production until 15 October, while two others are facing cargo loading delays, according to a source.
Oceania
A bunker barge serving Fremantle and Kwinana ports is in dry dock until mid-November, making VLSFO unavailable by barge during this period. However, LSMGO can still be supplied at berth. The Western Australian port of Kembla remains unaffected, as bunker deliveries are exclusively by truck and ex-pipe. In New South Wales, Sydney has sufficient LSMGO stocks, but HSFO may require longer lead times.
In Victoria, Melbourne and Geelong have ample supplies of VLSFO and LSMGO, but prompt HSFO deliveries may be challenging. In Queensland, Brisbane and Gladstone ports have sufficient VLSFO and LSMGO with lead times of 7-8 days, although HSFO availability is limited in Brisbane.
In New Zealand, Tauranga and Auckland have good VLSFO supplies, with Auckland also having strong LSMGO availability. However, intermittent rough weather is forecasted in Tauranga over the next few days, which may affect bunker operations.
South Asia
In the Indian ports of Mumbai, Kandla, Tuticorin, Cochin, and Chennai, VLSFO and LSMGO supplies are limited. VLSFO and LSMGO grades are available in Visakhapatnam, but a supplier in Paradip and Haldia is almost out of stock for both grades.
Sri Lanka's ports of Colombo and Hambantota have sufficient supplies of all grades, with prompt lead times of about three days.
Middle East
All grades remain tight in Fujairah, with most suppliers recommending lead times of 7-10 days, consistent with last week. However, some suppliers can still provide grades for prompt deliveries, according to a source. A similar situation exists in Khor Fakkan, where lead times of 7-10 days are advised for all grades.
In Saudi Arabia’s Jeddah port, VLSFO and LSMGO supplies are abundant. VLSFO supply is limited in nearby Djibouti, while LSMGO is more readily available there.
Omani ports, including Sohar, Salalah, Muscat, and Duqm, have ample LSMGO supplies with options for prompt delivery possible.
By Tuhin Roy
Photo credit and source: ENGINE
Published: 9 October, 2024
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