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ENGINE: East of Suez Bunker Fuel Availability Outlook (2 June 2026)

VLSFO supply tight in Zhoushan; severe tropical storm Jangmi-induced bad weather might impact bunkering in Japan’s Kyushu region; bunker supply extremely tight in Fujairah and Khor Fakkan.

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RESIZED ENGINE East of Suez

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 supply tight in Zhoushan
  • Severe tropical storm Jangmi-induced bad weather might impact bunkering in Japan’s Kyushu region
  • Bunker supply extremely tight in Fujairah and Khor Fakkan

Singapore and Malaysia

VLSFO availability in Singapore remains under pressure, with suppliers recommending lead times of 10-15 days, compared with 13-18 days a week ago. HSFO supply has tightened further, with lead times extending to around 10-15 days from 9-11 days previously. In contrast, LSMGO availability has improved, with recommended lead times easing to about seven days from 10-12 days last week.

Meanwhile, a biofuel supplier has indicated that it is not yet prepared to offer or deliver biofuels in Singapore. The supplier plans to begin onboarding once logistical arrangements have been finalised and it is close to launching supply operations, according to a source.

At Port Klang in Malaysia, VLSFO availability remains relatively steady, especially for smaller prompt stem requirements. However, supply conditions for LSMGO remain tight, while HSFO availability continues to be constrained, making both grades increasingly challenging to secure.

East Asia

VLSFO availability in Zhoushan remains under pressure as several suppliers continue to grapple with low inventories. The tightness has persisted for about a month, according to a trader, with recommended lead times unchanged at 7–10 days. Availability of LSMGO and HSFO has improved marginally, with lead times easing to 4–7 days from 5–8 days last week.

As May is typically marked by prolonged periods of dense fog in Zhoushan, which can disrupt cargo and bunker operations, a supplier has revised its bunker-only-call cancellation policy. Effective 26 May 2026, dense fog will no longer be classified as a force majeure event. The supplier will endeavour to arrange delivery upon a vessel’s arrival, but supply is not guaranteed. Cancellation fees may apply, while vessels opting to bypass Zhoushan can request replacement orders subject to mutual agreement, a source said.

Elsewhere in northern China, bunker supply conditions remain uneven. Dalian and Qingdao have ample VLSFO and LSMGO availability, although HSFO remains tight in Qingdao. Tianjin continues to experience supply constraints across all fuel grades. In Shanghai, VLSFO and HSFO availability is limited, while LSMGO supply remains relatively stable.

In southern China, both VLSFO and LSMGO availability remain restricted in Fuzhou. Xiamen has sufficient VLSFO stocks, but LSMGO supply is tighter. Yangpu and Guangzhou are also facing constraints across both grades.

Hong Kong’s bunker market remains largely stable, with lead times for all fuel grades holding at around seven days in recent weeks.

Taiwan’s bunker market is also steady, according to a local source. Recommended lead times for both VLSFO and LSMGO remain at about two days in Keelung, Hualien, Taichung and Kaohsiung, broadly unchanged from the previous week.

Bunker demand in South Korea has softened so far this week, according to a local trader.

Across the southern ports of Busan, Ulsan, Masan, Onsan, Yeosu and Kwangyang, recommended lead times for both VLSFO and LSMGO are around three days, compared with 3–6 days last week. HSFO availability has improved significantly, with lead times shortening to about three days from 4–13 days previously.

Supply conditions have also improved at western ports including Incheon, Daesan, Dangjin, Pyeongtaek and Taean. Lead times for VLSFO and LSMGO have eased slightly to around three days from five days last week. HSFO availability has improved as well, after being largely offered only on an enquiry basis last week.

However, weather-related disruptions continue to pose operational risks. Delays are forecast in Busan and Ulsan on 7 June, and in Yeosu between 6–8 June.

Japan’s bunker market, meanwhile, remains under severe pressure as major refiners continue to prioritise domestic fuel requirements, resulting in significant supply cuts to the marine sector. The tightness has pushed Japanese bunker prices to substantial premiums, prompting many ocean-going vessels to seek fuel in neighbouring hubs such as South Korea and China.

In Tokyo Bay and Nagoya, a sharp decline in vessel arrivals has led to a modest surplus of VLSFO and HSFO. Suppliers are occasionally offering spot stems of 200–500 mt, provided buyers accept prevailing regional premiums. While LSMGO remains critically tight nationwide due to a structural domestic gasoil shortage, limited availability has emerged in the Tokyo Bay and Nagoya areas. In most other regions, offers remain virtually absent.

Supply conditions remain especially tight in western Japan, where spot availability for fuel oil is almost non-existent, according to a Japan-based trader.

The recent reports of a US-Iran agreement and the expected reopening of the Strait of Hormuz have improved sentiment regarding Japan’s long-term fuel supply outlook. However, the trader noted that it could take several months for Middle Eastern supply flows and domestic distribution networks to fully normalise. Until then, current supply constraints and tight market conditions are likely to persist.

Recommended lead times are currently around 7–10 days for HSFO and 10–12 days for VLSFO across major ports including Tokyo, Chiba, Kawasaki, Nagoya and Yokkaichi. At Osaka, Kobe, Kashima, Mizushima, Tokuyama and Oita, both grades continue to be offered only on a case-by-case enquiry basis.

Weather conditions could add further pressure. Severe tropical storm Jangmi was moving north towards Japan’s southwestern main island of Kyushu on Tuesday after impacting Okinawa the previous day, according to the Japan Meteorological Agency.

The storm is currently approaching southwestern Japan (Kyushu region) and is expected to move past the Osaka area before nearing the Tokyo region around 3 June, which could disrupt bunkering operations in these regions, another source said.

In contrast, Indonesia’s bunker market remains relatively stable. VLSFO availability is steady in Jakarta, Surabaya, Balikpapan and Cigading, with recommended lead times of around three days.

Oceania

In Western Australia, VLSFO supply at Kwinana and Fremantle remains available with lead times of around one week. Deliveries are conducted by barge and currently rely on a single supplier.

Supply conditions on Australia’s east coast differ by location. In New South Wales, Port Kembla can receive VLSFO via truck or pipeline, while Sydney maintains adequate inventories of both VLSFO and LSMGO. HSFO availability in Sydney remains limited and typically requires lead times of about seven days.

In Queensland, suppliers in Brisbane and Gladstone are offering VLSFO and LSMGO with lead times of approximately seven days. HSFO in Brisbane is available only upon request.

Further south, Melbourne and Geelong continue to hold comfortable VLSFO stocks. However, prompt HSFO availability remains restricted. Bunker deliveries in both ports depend on a single barge, with recommended lead times of close to seven days.

One supplier advises lead times of around five days across all fuel grades in Brisbane, Sydney and Melbourne. Meanwhile, Dampier continues to rely on truck support for pipeline supply, making early booking and berth confirmation essential, according to a source.

New Zealand’s bunker market remains stable. VLSFO is readily available in Tauranga and Auckland, with recommended lead times of around four days. At Marsden Point, both VLSFO and LSMGO can be supplied directly to vessels through pipeline connections.

However, bunker operations across New Zealand remain vulnerable to weather conditions, particularly in Wellington and ports located on the South Island.

South Asia

Adverse weather conditions are forecast to disrupt operations at several Indian ports in the coming days. Potential delays are expected at Kandla and Sikka between 3–5 June, Cochin and Visakhapatnam between 2–6 June, and Mumbai between 4–6 June, which could impact bunker deliveries.

In Sri Lanka, bunker supply remains stable. Colombo and Hambantota continue to be well stocked across all fuel grades, with at least one supplier able to deliver within around five days, compared with three days previously.

Weather conditions could, however, affect bunker operations in Colombo and Trincomalee between 2–6 June.

Middle East

“Middle Eastern ports are currently operating with improved but still unstable conditions following the [partial] reopening of the Strait of Hormuz. Overall situation is better compared to the previous period, however availability remains limited in some locations,” a regional source said.

“Overall, the market is improving, but remains sensitive and subject to prompt changes in availability and pricing,” the source added.

Bunker availability in the UAE ports of Fujairah and Khor Fakkan has tightened significantly, with only a handful of suppliers currently offering fuel and many selectively responding to enquiries, according to a trader.

For VLSFO and LSMGO, only one supplier currently has stocks in Fujairah, with most offers issued on a firm enquiry basis. HSFO availability is slightly better, with two suppliers able to provide the grade.

In Khor Fakkan, availability remains constrained across all fuel grades, with suppliers largely assessing requests on a case-by-case basis.

The tight supply situation is primarily due to a lack of incoming cargoes, leaving barges without product to load. While fresh cargo arrivals were expected over the past two weeks, there is still no clear indication of when they will materialise.

Barges that had already loaded product continue to offer fuel until inventories are exhausted, though most of these volumes have already been sold. Suppliers warn that Fujairah and Khor Fakkan could run dry in the coming days if the expected cargoes fail to arrive and the remaining barge stocks are fully booked.

Even if replenishment cargoes arrive, bunker prices could continue to command premiums, the trader added.

Bunker availability in Dubai also remains constrained, with suppliers issuing offers only against firm enquiries. Elsewhere in the UAE, port operations at Jebel Ali, Hamriyah and Sharjah are proceeding normally, according to Inchcape Shipping. Ports in Ras Al Khaimah are also fully operational, although RAK Ports has maintained a marine risk surcharge for vessels calling at its ports, harbours and anchorages since March.

In Kuwait, both Shuaiba and Shuwaikh continue to operate without disruption.

Saudi Arabian ports have not issued any formal alerts. While VLSFO availability remains tight in Jeddah, LSMGO supply is relatively stable. However, adverse weather could disrupt bunker operations in Yanbu on 6 June.

In Qatar, the Ministry of Transport restored 24-hour maritime navigation for all vessel types at the beginning of May, according to Inchcape Shipping. Despite this, both VLSFO and LSMGO remain in short supply at Ras Laffan.

Oman continues to offer strong prompt LSMGO availability, with one supplier recommending lead times of just 1–2 days across its ports, including Duqm, Muscat, Sohar and Salalah.

In Bahrain, vessel movements have resumed, although port activities remain somewhat restricted under the current operating environment, according to Inchcape Shipping.

Egyptian ports are functioning normally. VLSFO inventories at Port Suez are close to exhaustion, while LSMGO and HSFO remain adequately stocked. Weather-related disruptions could affect bunker operations in Port Said on 3 June.

Djibouti port continues to face tight availability of both VLSFO and LSMGO. Meanwhile, port and bunker operations across Jordan, Iraq, Cyprus, Pakistan and Lebanon are proceeding as normal, according to Inchcape Shipping.

By Tuhin Roy

 

Photo credit and source: ENGINE
Published: 3 June, 2026

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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