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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

4 weeks 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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These accolades recognise the contributions by the Port of Singapore serving as a key node in the global supply chain, and Singapore’s leadership in driving maritime decarbonisation and transformation.

The annual AFLAS Awards is organised by freight and logistics publication, Asia Cargo News, to honour leading service providers in the supply chain community for demonstrating leadership as well as consistency in service quality, innovation, customer relationship management and reliability. Winners were determined by votes cast by readers of the publication.

Mr Chee Hong Tat, Acting Minister for Transport and Senior Minister of State for Finance, said: “Singapore is honoured to be named the Best Global Seaport and Best Seaport in Asia. These awards are the result of the shared effort and strong collaboration between the Government, industry, unions and workers. We will continue to grow our port as an efficient, sustainable, and trusted node in global supply chains.”

Mr Teo Eng Dih, Chief Executive of MPA, said: “These awards are testament to the partnership and collaboration between Maritime and Port Authority of Singapore (MPA) with industry and international partners, the research and enterprise community, as well as unions. MPA remains committed to fostering an environment that encourages enterprise, innovation, and talent development.”

“We will continue to work with our partners to enhance Singapore’s connectivity, advance digitalisation efforts, and accelerate the decarbonisation of international shipping in line with the 2023 IMO strategy on reduction of GHG emissions from ships.”

Photo credit: Maritime and Port Authority of Singapore
Published: 29 September, 2023

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Lum will take on the position of Commercial Director from Thomas Lee who was recently promoted to Head of APAC in a management restructure within KPI OceanConnect.

The Global Accounts team is an expert unit within KPI OceanConnect, specialised in providing long-term, tailored fuel strategy solutions to a portfolio of Key Accounts on a global scale. Dedicated regional teams located in London, Houston and Singapore work seamlessly across the world and around the clock to support their clients.

Lum joined KPI OceanConnect in 2021 as Senior Key Account manager and has made a significant contribution to the development of the team and optimisation of the daily operations of the unit in Singapore. Lum has vast experience across the supply chain and previously worked with TotalEnergies, Glencore and Global Energy Group prior to joining KPI OceanConnect.

Henrik Zederkof, Head of Global Accounts at KPI OceanConnect, said: "It is always a pleasure to witness the growth of our team members, and Melvin's progression is no exception. I have full confidence in Melvin's expertise, ability to lead the unit and dedication to his team. I look forward to seeing the progress of Melvin and his team, which will undoubtedly bring significant value to our numerous partners and the wider organisation.”

"Melvin will assume a pivotal role within the Global Accounts management team, leveraging his extensive experience in supply chain management and profound insight into emerging technologies. In his new role, Melvin will further enhance our team's skill set, aligning them with our ongoing objectives of supporting our partners in their green transition and digitalisation endeavours."

Melvin Lum, Commercial Director of KPI OceanConnect Global Accounts in Singapore, said: "I am very appreciative of the support and confidence from our management team as I take on this exciting new role. I am enthusiastic to work with the team as we continue to deliver an exceptional experience to our partners and stakeholders with dedication, innovation and passion."

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“This means that TotalEnergies Marine Fuels can continue sourcing and supplying marine biofuels in accordance with EU renewable energy regulations ensuring the highest sustainability standards,” she said in a social media.

“It's the third year in a row that we have successfully renewed this certification, after a deep and comprehensive audit which showed zero non-conformity.”

She added marine biofuels have grown in demand among shipping companies that want to cut greenhouse gas emissions immediately.

“TotalEnergies Marine Fuels offers marine biofuels commercially in Singapore and we are starting in Europe. This certification enables us to accompany our customers in their decarbonisation journey with the best standard solutions available today.”

Photo credit: TotalEnergies Marine Fuels
Published: 29 September, 2023