Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

VLSFO and HSFO availability tight in Singapore; several East Asian ports brace for possible weather-related disruptions; demand good in Fujairah.

Published

1 year ago

September 6, 2023

Admin

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 availability tight in Singapore
Weak bunker demand in Zhoushan
LSMGO availability good across Omani ports

Singapore

After a spike in bunker demand last week, the demand has been relatively quiet so far this week, a source says. Availability of VLSFO has tightened in Singapore, with lead times increasing slightly from 8-10 days last week to 10-12 days now

On the other hand, lead times for HSFO have come down from 6-11 days last week to 6-9 days now. LSMGO remains readily available, with most suppliers offering unchanged lead times of 2-4 days.

Residual fuel oil stocks in Singapore averaged 9% higher in August than in July, data from Enterprise Singapore shows. Despite the port's net fuel oil imports declining by 14% in August, the port’s fuel oil stocks grew above 21 million bbls in August. Overall, there was less cargo trade, with fuel oil imports slumping by 13%, and exports by 9%.

The Southeast Asian hub’s middle distillate stocks remained roughly steady at above 7 million bbls in August.

East Asia and Oceania

A source says bunker demand remains weak in Zhoushan. Some suppliers are offering VLSFO and LSMGO with lead times of 4-6 days – slightly up from 3-5 days last week. Lead times of 3-5 days are advised for HSFO.

Bunker deliveries resumed at Zhoushan’s outer port limits (OPL) area on Tuesday after being suspended by Typhoon Saola-induced bad weather since Thursday. All four anchorages in the Chinese bunkering hub are operational now, a source says.

Availability has improved across all bunker fuel grades in Hong Kong, with recommended lead times halving from almost 14 days last week to around seven days now.

Meanwhile, availability of VLSFO and LSMGO has improved in South Korean ports amid average bunker demand, a source says. Most suppliers are advising lead times of 7-13 days for both grades now, compared to lead times of up to 15 days recommended last week. On the other hand, lead times of HSFO have risen from 10-11 days last week, to 7-13 days now.

Rough weather is forecast in the South Korean ports of Ulsan, Onsan, Busan and Yeosu between 5-10 September, which might disrupt bunker operations at these ports.

Adverse weather conditions are also predicted in the Thai ports of Koh Sichang and Leam Chabang between 10-12 September, and in the Kiwi port of Tauranga on 11 September, which might impact bunker operations.

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 some suppliers advising short lead times of around 2-3 days.

Meanwhile, both grades still remain subject to availability in the Indian ports of Mumbai and Visakhapatnam, and subject to enquiry in Tuticorin on the southeast coast and Haldia on the east coast.

Bad weather is forecast to hit the Indian ports of Kandla and Sikka between 8-12 September, and in Visakhapatnam on 17 September, which may hamper bunker deliveries

Middle East

Prompt availability remains “super tight” in Fujairah, with most suppliers recommending unchanged lead times of 5-7 days across all grades. However, some can offer prompt supply, but these deliveries depend on stem sizes.

All grades remain in ample availability across all grades in the UAE port of Khor Fakkan, with lead times of 5-7 days – virtually unchanged from last week.

LSMGO availability remains good across the Omani ports of Duqm, Sohar, Salalah and Muscat, with prompt supply available.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 6 September, 2023

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16 October

Registration and sign-in for participating guests
Meetings between Zhejiang Provincial and Zhoushan Municipal leaders with VIPs

17 October

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Leader’s speech, guest keynote speech, signing of major projects

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14:50-15:10 - Signing Ceremony

15:10-16:10 - Keynote speech

16:10-16:35 - Coffee break

16:35-17:05 - Roundtable forum (Topic: Facing green and low-carbon transformation in global shipping, how do marine fuels change in response to the trend?)

17:05-17:35 - Roundtable forum (Topic: The road to develop high-quality offshore fuel bunkering metering under the new developments)

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Utilising financial innovation, futures and spot cooperation to promote the construction of a hub for the allocation of bulk commodity resources*
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International iron ore trade development*
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Development of China's new chemical materials industry during the “15th Five-Year Plan”*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan

Development of non-ferrous metal mining industry*
Location: Lianhua Ocean Hall, Hilton Zhoushan

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International maritime law of the free trade port (zone)
Location: Fortune Hall, Zhoushan CaiFu Hotel

Photo credit: Zhoushan High-tech Zone Administrative Committee
Published: 11 October, 2024

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Photo credit: Singapore Chamber of Maritime Arbitration
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