Bunker Fuel

ENGINE: East of Suez Bunker Fuel Availability Outlook (13 Feb 2024)

VLSFO availability remains tight in Singapore; bunker demand low in South Korean and Japanese ports; rough weather conditions disrupt bunker operations in UAE ports.

Published

8 months ago

February 14, 2024

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 remains tight in Singapore
Bunker demand low in South Korean and Japanese ports
Rough weather conditions disrupt bunker operations in UAE ports

Singapore and Southeast Asia

Availability of VLSFO remains constrained in Singapore. Five suppliers are struggling to meet delivery schedules, a source says. Recommended lead times for VLSFO hover around 12 days. HSFO supply is also tight, with lead times ranging from 9-12 days.

LSMGO supply is relatively better compared to the other two grades. Lead times of 4-8 days are recommended for the grade.

Singapore's residual fuel oil stocks have decreased by 3% so far this month compared to January, the latest report from Enterprise Singapore showed. The port's net fuel oil imports have slumped by 20%, amounting to a 1.03 million bbls decrease this month. This drop, coupled with a minor decrease of 7,000 bbls in fuel oil exports, have contributed to the stock drawdown. Meanwhile, Singapore's middle distillate stocks have remained relatively steady compared to January.

In Malaysia's Port Klang, VLSFO and LSMGO availability is normal, with multiple suppliers able to offer prompt dates. However, HSFO availability continues to be strained, mirroring recent weeks' trends.

VLSFO and LSMGO availability is normal across several Indonesian ports, such as Jakarta and Surabaya.

China and East Asia

Bunkering activities in Zhoushan have slowed down due to the Chinese Lunar New Year holidays. Most suppliers are expected to resume operations after the holiday period, potentially by Monday. Some suppliers in Zhoushan can supply stems for dates only after 20 February, as customs authorities are closed during the holiday period.

In the northern Chinese port of Dalian, VLSFO and LSMGO supply is tight, while nearby Tianjin faces supply shortages for all fuel grades. Southern Chinese ports, including Shanghai, Xiamen and Guangzhou, are also experiencing tight availability of VLSFO and LSMGO, with Shanghai reporting tightness in HSFO as well.

Conversely, in Hong Kong, all bunker fuel grades remain readily available, with lead times of around seven days, consistent with the previous week.

In South Korean ports, the Chinese Lunar New Year holidays have contributed to keeping bunker demand low. Lead times for VLSFO and HSFO are around seven days. Meanwhile, LSMGO remains readily available and has short lead times of about three days, contrasting with the varied lead times of 3-10 days observed last week. However, concerns arise regarding potential disruptions to bunker deliveries between 13-18 February due to anticipated high winds and waves in key South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu.

In Japan, the bunker fuel market is grappling with sluggish demand attributed to both high bunker prices and adverse weather conditions. Tokyo's VLSFO was priced about $42/mt higher than Singapore's and $47/mt higher than Zhoushan's on Tuesday. Lead times vary across key Japanese ports, with around four days in Tokyo, Chiba, Osaka, and Kobe, approximately seven days in Nagoya and Yokkaichi, and longer periods of 11-12 days in Mizushima and Oita.

Additionally, adverse weather forecasts for Ho Chi Minh in Vietnam and Koh Sichang in Thailand toward the end of the week raise concerns about potential bunkering disruptions in these ports.

South Asia

Kandla, situated on India's northwest coast, currently boasts abundant availability of VLSFO and LSMGO. However, several other Indian ports, such as Cochin, Chennai, Visakhapatnam, Paradip, and Haldia, are grappling with supply shortages for both grades.

In Mumbai, some suppliers are almost running out of VLSFO and LSMGO stocks, according to a source.

Conversely, the Sri Lankan port of Trincomalee has ample availability of all bunker fuel grades.

Middle East

The persistent attacks on commercial ships in the Red Sea have caused shipping companies to opt for rerouting vessels around Africa instead of utilising the shorter Suez Canal route. As a result, this alteration in shipping routes has gradually impacted bunker demand in Fujairah.

Despite a slowdown in demand, prompt availability remains exceptionally constrained for all grades in Fujairah. Adverse weather conditions since Sunday have prompted several suppliers in Fujairah to halt bunker operations, although some can still deliver based on prevailing weather conditions.

Swells up to a meter were seen in Fujairah on Tuesday, which impacted operations. Calmer weather conditions from Wednesday are expected to normalise bunker operations and ease bunker backlogs. Recent weather-related disruptions have caused severe bunker backlogs and delivery delays. Lead times of 7-10 days are recommended for all grades in Fujairah. Similarly, prompt availability is tight in the UAE port of Khor Fakkan, where similar lead times are advised for all grades.

Port operations at Jebel Ali port in the UAE resumed on Monday night after a brief suspension, according to GAC Hot Port News. Adverse weather conditions have also impacted bunker deliveries in the Omani port of Sohar.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 14 February, 2024

Up Next

BlueBARGE project to pave way for bunkering anchored ships with renewable electricity

Don't Miss

European Maritime Safety Agency publishes study on safe bunkering with biofuels

Biofuel

Argus Media: Bunkering sector needs deeper dive into B24 bio bunker fuel market

‘As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector,’ says Mahua Chakravarty of Argus.

Published

1 day ago

October 4, 2024

Admin

Argus Media organises free admission ‘Argus Asia B24 Forum’ for bunkering sector

Ahead of Argus Asia B24 Forum, Manifold Times interviewed Mahua Chakravarty, Head of Marine Fuels Pricing (Asia) of independent global energy and commodity market intelligence provider Argus Media; she explains the growing prominence of B24 bunker fuel in the marine sector and believes it is imperative for the bunkering sector to deepen its knowledge on it:

MT: Why is it important for the bunkering sector to know more about the B24 bunker fuel market?

B24 has emerged as the first alternative marine fuel that allows ship-owners and charterers a drop-in fuel option, and make greenhouse gas (GHG) savings, for their voyages into EU and territorial waters.

It has proved to be the most practical solution for ship-owners that eliminates costly retrofitting charges. The easy availability of used cooking oil methyl ester (UCOME) as a blendstock from China and southeast Asia, also adds to its overall attractiveness as an alternative fuel.

B24 consumption in the port of Singapore recorded multi-fold jumps to touch 518,000t in 2023 as ship-owners fuelled for trials in preparation for the implementation of EU-led mandates like the EU Emissions Trading Scheme (ETS) and the Carbon Intensity Index (CII) rating. In 2024, B24 demand has continued to grow with 377,800t of consumption seen up to August, according to statistics from the Maritime and Port Authority of Singapore (MPA).

As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector. Being the first generation of new marine fuels, B24 has shown the way that biofuel blends can provide a solution for ship-owners/charterers to meet compliance mandates set by the EU and IMO.

MT: Why has Argus developed its own B24 Singapore price index? What's so special about it and why should the industry adopt it as a benchmark?

Argus was the first to launch its spot B24 delivered on board (DOB) Singapore assessment in January 2023, thus introducing price discovery for this market at its point of inception. The past 1.5 years of daily price assessments of B24, using a robust market survey approach, has built Argus’ understanding of this market from the start.

We have seen the growth of liquidity and the quest among refiners, traders, ship-owners to find pricing solutions for a nascent market. We have been at the forefront of capturing spot liquidity growth and in assessing prices for this market.

This index is now considered a key price assessment by key refiners, traders, ship-owners and other stakeholders in the market.

MT: What takeaways can each segment of the bunkering sector such as bunker buyers, bunker traders, and shipowners receive from the upcoming Argus B24 forum?

The Argus B24 Asia Forum is aimed at showcasing some of these learnings by a global team that covers key markets like Singapore, China and Europe. Our global team will present their insights on the key trends driving demand for marine biodiesel globally.

As the marine sector marches onwards with the bunkering of higher biofuel blends, this forum will allow the audience to reflect on the key factors that have driven the marine biodiesel sector. It will provide insights to make better decisions about infrastructure, pricing, feedstock-related issues and what blends are likely to be prevalent in the coming year.

We will be hosting a panel discussion at this forum that will include key players driving the marine biodiesel space in Singapore and other regions.

The Argus Asia B24 Forum will be held in The Village Hotel (The Events Centre by Far East Hospitality), Sentosa, Singapore (Google Maps) on 8 October between 4.00pm to 7.00pm Singapore Time.

Participants are encouraged to register for the free event via the custom link here.

Photo credit: Argus Media
Published: 4 October 2024

Bunker Fuel

Brazil: Raízen launches new bunkering operation in Itaqui

Operation will support both coastal and oceangoing vessels at Off Port Limits, allowing the firm’s customers to avoid full port call fees and unnecessary deviations, says Paula Georgopoulos Tinoco.

Published

1 day ago

October 4, 2024

Admin

Brazil: Raízen launches new bunkering operation in Itaqui

Brazilian energy firm Raízen has launched its new bunkering operation in Itaqui at the Outer Anchorage Area, according to Paula Georgopoulos Tinoco, Bunker Sales Coordinator at Raízen on Wednesday (3 October).

The firm is providing local supplies for the grades VLSFO380 (max. 0.5%S) and LSMGO DMA (max. 0.1%S).

“The new bunkering operation will support both coastal and oceangoing vessels with different sizes and class at the Off Port Limits, allowing our customers to avoid full port call fees and unnecessary deviations at different bunkering ports,” she said in a social media post.

In September last year, Bunker Holding subsidiary Bunker One announced that it partnered with Acelen, the largest bunker producer in the Brazilian state of Bahia, to offer the only outer anchorage bunkering operation in Brazil at the time.

Starting September 2023, vessels such as large cargo ships and tankers can be supplied in the anchorage area of the Port of Itaqui in São Marcos Bay (MA).

Photo credit: Raízen
Published: 4 October, 2024

Business

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

Oberholtzer, a finance executive with over 25 years of experience, joins Infineum from Shell, where he has held various senior positions including Senior Vice President of Shell Finance for Chemicals and Products.

Published

1 day ago

October 4, 2024

Admin

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

International fuel additives company Infineum on Thursday (3 October) announced the appointment of Mr. Rahim Oberholtzer as the new Chief Financial and Strategy Officer, effective 1 October.

Oberholtzer will succeed Mr. Philippe Creteur, who has retired at the end of September 2024, after 18 years of dedicated service to Infineum.

Oberholtzer, a seasoned finance executive with over 25 years of diverse experience, joins Infineum from Shell, where he has held various senior positions. His most recent role was Senior Vice President of Shell Finance for Chemicals and Products.

During his career, Oberholtzer has acquired extensive expertise in public accounting, investment banking, and trading. He began his professional journey at KPMG in San Francisco as an auditor. He then moved on to Merrill Lynch, focusing on mergers and acquisitions and equity offerings within the energy sector, ultimately serving as Head of Structured Finance at Merrill Lynch Commodities.

In 2011, he joined Shell’s Mergers and Acquisitions team in the U.S., leading key projects such as the launch of Shell Midstream Partners and the Eagle Ford divestment. He subsequently managed finance teams in Trading & Supply, covering European Gas & Power, Global Crude, and Global Products & Operations.

Infineum CEO Aldo Govi, said: “We are deeply grateful for Philippe’s years of dedication and excellent contribution to Infineum. At the same time, I am thrilled to welcome Rahim to our corporate leadership team.”

Photo credit: Infineum
Published: 4 October, 2024