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 availability tight in Singapore
• Several East Asian ports brace for possible weather-related disruptions
• Demand good in Fujairah

 

Singapore

Singapore has seen “average” bunker demand so far this week, a source says. Securing prompt VLSFO stems in Singapore can be difficult, with most suppliers recommending lead times of 8-10 days – almost unchanged from last week.

Lead times for HSFO have increased slightly from 6-8 days last week to 6-11 days now. LSMGO, on the other hand, is readily available for prompt delivery dates.

The Southeast Asian bunker hub’s residual fuel oil stocks have averaged 10% higher so far in August than across July, according to Enterprise Singapore. The port’s net fuel oil imports have fallen by 12% this August. Both imports and exports of fuel oil have declined this month. Singapore’s fuel oil imports have slumped by 11% so far this month, and its exports by 10%.

The port’s middle distillate stocks, on the other hand, have averaged 1% lower so far this month than in July.

 

East Asia and Oceania

A source says that some suppliers in Zhoushan have almost run out of VLSFO supply. However, the low demand for the grade has helped to mitigate the tightness in supply to some extent. Lead times of 3-5 days are recommended for the grade.

Availability of LSMGO and HSFO remains good in the Chinese bunkering hub, with shorter lead times of 2-4 days recommended. Bad weather is forecast in Zhoushan from 30 August onwards, which could disrupt bunker operations at the port, the source adds.

China Meteorological Administration (CMA) has issued typhoon alerts for the Chinese coastal provinces of Fujian and Guangdong due to Typhoon Saola. Typhoon Saola hit the northern Philippines on Sunday, resulting in heavy rainfall in the region. It is currently located 520 km northeast of the Philippine capital of Manila.

But Typhoon Saola’s path remains uncertain, as it is anticipated to interact with Tropical Storm Haikui.

Taiwan’s Central Weather Bureau has also warned of heavy rains in Taiwan’s eastern and southern areas on Wednesday and Thursday as Typhoon Saola grazes past the island on its way to China’s southern coast.

Weather conditions are forecast to be rough in Hong Kong between 1-4 September, which could impact bunkering. Hong Kong's weather agency is expected to issue a Typhoon Saola advisory later this week.

Availability of all grades in Hong Kong is under pressure due to high bunker demand and low stocks available with several suppliers, a source says. Lead times for all grades have almost doubled from last week's seven days to around two weeks now.

Meanwhile, availability across all fuel grades has tightened in South Korean ports amid recovering bunker demand, a source says. Lead times for VLSFO and LSMGO vary widely between 5-15 days now – significantly up from the 5-9 days last week. Some suppliers have increased lead times for HSFO from last week's 5-9 days, to longer lead times of 10-11 days.

A source says that Tropical Storm Haikui, which is located around 1,660 km east of North Luzon in the Philippines (according to the Philippine meteorological agency PAGASA), might disrupt port operations in the southern South Korean ports from 3 September.

Bad weather conditions are predicted to hit the South Korean ports of Ulsan, Onsan, Busan and Yeosu between 1-3 September, and Daesan and Taean on 3 September, which can disrupt bunkering further.

Japan’s national broadcast agency NHK World-Japan warns about rough weather around the islands of Okinawa due to Typhoon Saola and Tropical Storm Haikui. It also noticed another Tropical Storm Damrey moving north off the coast of the Tohoku region. However, it is expected to change course and move away from the region.

Adverse weather conditions are forecast in the following ports:

• Subic Bay, Philippines: 30 August-2 September
• Koh Sichang and Leam Chabang, Thailand: 2-5 September
• Ho Chi Minh, Vietnam: 29 August-5 September
• Tauranga New Zealand: 2-3 September

Rough weather conditions could impact bunker operations at these ports.

 

South Asia

VLSFO and LSMGO grades can be delivered with around 2-3 days of lead time in Kandla on the northwest coast of India and in the country's southern ports of Cochin and Chennai.

However, both grades remain very tight in the Indian ports of Mumbai and Visakhapatnam, with delivery dates being subject to availability, a source says. On the other hand, bunker deliveries remain subject to enquiry Tuticorin on the southeast coast, and Haldia on the east coast.

A supplier in Paradip on the east coast of India has almost run out of VLSFO and LSMGO stocks, the source adds.

Rough weather is forecast in the Indian port of Cochin on 9 September, which could affect bunker operations there.

Bad weather conditions are predicted in the Sri Lankan port of Colombo on 30 August, as well as between 2-5 September and 7-10 September, which may disrupt bunker deliveries at the port.

 

Middle East

A source says prompt availability of all bunker fuel grades remains “super tight” amid good demand in Fujairah. Most suppliers are recommending lead times of 5-7 days across all grades in the Middle Eastern bunkering hub – almost unchanged from last week. However, some suppliers can offer prompt dates depending on stem size.

All grades remain in ample supply in the other UAE port of Khor Fakkan, with unchanged lead times of 5-7 days.

LSMGO remains readily available in the Omani ports of Duqm, Sohar, Salalah and Muscat, with prompt dates possible.

By Tuhin Roy

 

Photo credit and source: ENGINE
Published: 30 August, 2023