Bunker Fuel

ENGINE: East of Suez Bunker Fuel Availability Outlook (23 April 2024)

Bunker supply is good in South Korean ports; steady VLSFO and LSMGO supply across several Australian ports; bunker demand dips in Fujairah.

Published

9 months ago

April 24, 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:

Bunker supply is good in South Korean ports
Steady VLSFO and LSMGO supply across several Australian ports
Bunker demand dips in Fujairah

Singapore and Malaysia

Lead times for VLSFO in Singapore have shown significant fluctuations in recent weeks. Currently, most suppliers are suggesting up to 10 days for the grade, while some can accommodate stems within six days.

Prompt HSFO availability in Singapore has improved, with recommended lead times now ranging between 6-10 days, down from 8-14 days last week. For LSMGO, lead times vary widely between 2-8 days in Singapore.

According to Enterprise Singapore's latest data, Singapore's residual fuel oil stocks have averaged 3% higher so far this month compared to March. Despite a 13% decline in the port's net fuel imports this month, the port's fuel oil stocks have remained steady at 21 million bbls. Fuel oil imports in the port have decreased by 334,000 bbls this month, while fuel oil exports have increased by 190,000 bbls. Singapore's middle distillate stocks have also risen by 3% this month to multi-month highs of 10.67 million bbls.

Prompt bio-bunker availability is tight in Singapore, according to two sources.

At Malaysia's Port Klang, VLSFO and LSMGO remain in abundant supply, with some suppliers able to arrange prompt deliveries for smaller quantities. However, the availability of HSFO is tight due to the limited supply available with suppliers.

China, East Asia and Oceania

Tight barge availability has constrained the supply of all grades in Zhoushan, with suppliers suggesting lead times of around 4-8 days for VLSFO and LSMGO, and 6-7 days for HSFO.

In the Taiwanese ports of Hualien, Kaohsiung, Taichung, and Keelung, VLSFO and LSMGO remain readily available amid normal bunker demand. Lead times of about two days are recommended for the grades – almost unchanged from last week.

All grades of bunker fuel are readily available in Hong Kong, with lead times of seven days recommended. Adverse weather conditions are forecast to impact Hong Kong on Friday, which could potentially impact deliveries.

In South Korean ports, all bunker grades remain readily available. Most suppliers are advising lead times of 4-5 days for all grades, which is similar to last week. Rough weather conditions are forecast intermittently throughout this week, which could affect bunker deliveries in the South Korean ports of Ulsan, Onsan, Busan and Yeosu.

In the ports of Kwinana and Fremantle in Western Australia, VLSFO and LSMGO supply is good. Lead times of 7-8 days are recommended in both ports. Heading to Sydney in New South Wales, LSMGO is readily available, while HSFO availability is restricted.

In Victoria, Melbourne has abundant VLSFO and LSMGO stocks, and Geelong also has ample availability of VLSFO. Nevertheless, prompt HSFO supply faces challenges in both Melbourne and Geelong. Moving to Queensland, both the ports of Brisbane and Gladstone boast sufficient stocks of VLSFO and LSMGO, with suggested lead times of 7-8 days. HSFO availability remains limited in Brisbane.

Unfavourable weather conditions are forecasted in the Thai port of Koh Sichang until Wednesday and the Vietnamese port of Hai Phong until Saturday, as well as in the Kiwi port of Tauranga until Friday. Bad weather could make bunker deliveries difficult in these ports.

South Asia

VLSFO and LSMGO availability continues to be limited in Indian ports, with the majority of suppliers facing supply shortages.

Ports including Mumbai, Kandla, Tuticorin, Chennai, Cochin, Visakhapatnam, Haldia, and Paradip are experiencing shortages of VLSFO and LSMGO, resulting in uncertain delivery schedules depending on availability.

On the flipside, the Sri Lankan port of Trincomalee has ample VLSFO, LSMGO and HSFO supply available.

Middle East

Bunker demand in Fujairah has reduced after a slight increase last week, but prompt availability of all grades remains limited due to backlogs caused by recent adverse weather conditions. Suppliers are recommending unchanged lead times of 7-10 days across all grades. Similar lead times are advised in the UAE port of Khor Fakkan.

In Saudi Arabia's Jeddah port, VLSFO and LSMGO supply remains good. However, in Djibouti, some suppliers are facing VLSFO shortages, while LSMGO supply is normal there.

LSMGO is readily available in Omani ports such as Sohar, Salalah, Muscat, and Duqm.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 24 April 2024

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