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:

1 August 2023

• VLSFO and HSFO supply tight in Singapore
• Demand weak in rough weather-exposed Zhoushan
• Several East Asian ports face possible weather disruptions

Singapore

Overall demand has been “muted” in Singapore so far this week, a source says. Availability of HSFO remains tight in Singapore as it has been in recent weeks, with several suppliers recommending lead times of almost two weeks – virtually unchanged from last week.

Meanwhile, increasing supply and weak demand have kept the VLSFO market under pressure in the East Asian bunkering hub. Some suppliers, who were offering the grade at lead times of 7-11 days last week, are now advising lead times of 11-13 days.

LSMGO remains more readily available with shorter lead times of 4-7 days recommended.

Singapore’s residual fuel oil stocks averaged 3% lower in July than across June, according to Enterprise Singapore. The port’s fuel oil stocks decreased despite an increase in net fuel oil imports. Both fuel oil exports and imports were up in July. Fuel oil imports rose by 18%, and to their highest level since last June. Fuel oil exports also surged 21% in July.

In the same time frame, the port’s middle distillate stocks also declined by 5%.

East Asia and Oceania

Weak bunker demand along with intermittent weather-related disruptions have ensured a steady bunker supply in Zhoushan. Most suppliers recommend prompt lead times, however, these deliveries are still subject to weather conditions. Several “supplier barges are available for prompt delivery”, a source says.

Bunker operations have been suspended by rough weather across all anchorages in Zhoushan again. Adverse weather conditions have been triggered by Typhoon Khanun, which is moving in the west-northwestward direction in the Philippine Sea, according to the Japan Meteorological Agency (JMA).

Bunkering is likely to resume fully across all of these anchorages from 8-9 August, a second source adds.

China’s National Meteorological Center (NMC) has issued typhoon alerts for strong winds as typhoon Khanun approaches east China. Authorities in China have cautioned all ports, ships and personnel operating in the region, especially the coastal province of Zhejiang.

Khanun follows Typhoon Doksuri which made landfall last week in the southeastern coastal province of Fujian in China after lashing the northern Philippines and parts of Taiwan. The influence of Doksuri has not waned as it continues to bring heavy rainfall to northern China.

Japanese authorities have also issued typhoon alerts for the island of Okinawa due to typhoon Khanun.

Rough weather is also forecast in Hong Kong on 4 August, which could impact bunker operations.

Availability of all bunker fuel grades remains good in Hong Kong, with most suppliers advising lead times of around seven days – virtually unchanged from last week.

Meanwhile, availability has improved across all grades in South Korean ports, with lead times coming down slightly from 5-8 days last week to around six days now.

Rough weather conditions are predicted in the South Korean ports of Ulsan and Onsan between 4-8 August, in Busan between 4-6 August, in Daesan and Taean between 4-5 August, and in Yeosu between 1-6 August, all of which could disrupt bunker deliveries.

Adverse weather conditions are also forecast in the Philippine port of Subic Bay between 2-8 August, in the Thai ports of Koh Sichang and Leam Chabang between 2-8 August, in the Vietnamese port of Ho Chi Minh between 2-8 August, and in the Kiwi port of Tauranga 2-4 August, which might disrupt bunker deliveries.

South Asia

Several Indian ports, including Kandla on the northwest coast, and Cochin and Chennai on the southern coast have good availability of VLSFO and LSMGO, with short lead times of around 2-3 days.

But both grades remain subject to availability in Mumbai and Visakhapatnam, as it has been in recent weeks. Meanwhile, supply is subject to enquiry in Tuticorin port located on the southeast coast and Haldia on the east coast, a source says.

Bad weather is forecast to hit the Indian ports of Kandla and Sikka between 1-3 August, and in Visakhapatnam on 2 August, which may hamper bunker operations.

The Sri Lankan port of Colombo is predicted to witness spells of bad weather on 1-2 August, and 7 August, which could impact bunker deliveries.

Meanwhile, Bangladeshi authorities have issued alerts across the maritime ports of Chattogram, Cox’s Bazar, Mongla and Payra due to monsoon depression over the northeast Bay of Bengal, according to GAC Hot Port News.

Middle East

A source says that prompt availability of all grades remains “super tight” in Fujairah amid good demand. Several suppliers are recommending lead times of 5-7 days – almost unchanged from last week. However, some can supply prompt dates, but these deliveries depend on stem sizes.

The other UAE port of Khor Fakkan also has unchanged lead times of 5-7 days across all grades.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 2 August, 2023