Bunker Fuel

ENGINE: East of Suez Bunker Fuel Availability Outlook (27 Feb 2024)

LSMGO availability is good in Singapore; bunker demand is low in Zhoushan; prompt supply tight in Fujairah and Khor Fakkan.

Published

1 year ago

February 28, 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:

LSMGO availability is good in Singapore
Bunker demand is low in Zhoushan
Prompt supply tight in Fujairah and Khor Fakkan

Singapore and Malaysia

Prompt VLSFO availability remains constrained in Singapore, with certain suppliers struggling to fulfill delivery commitments. Lead times of eight days are currently recommended for VLSFO. HSFO supply is also under pressure, with lead times spanning between 4-10 days, almost unchanged from the previous week. On the contrary, LSMGO supply remains abundant, and shorter lead times of 2-4 days are generally recommended.

Enterprise Singapore's latest data reveals that Singapore's residual fuel oil stocks have averaged 3% lower this month compared to January. The Southeast Asian bunker hub has witnessed a 12% decrease in net fuel oil imports so far in February, despite increases in both imports and exports. Fuel oil imports have risen by a modest 144,000 bbls this month, while fuel oil exports have surged by a notable 774,000 bbls, contributing to inventory drawdowns.

Meanwhile, the port's middle distillate stocks have seen a significant 21% increase this month, touching nearly 8.50 million barrels, the highest level since November.

In Malaysia's Port Klang, VLSFO and LSMGO availability remains stable, with several suppliers able to supply both grades of smaller quantities. On the other side, HSFO supply is very tight, with most of the suppliers lacking supply.

China, East Asia and Oceania

In Zhoushan, bunker fuel availability has improved amid subdued demand, leading several suppliers to recommend shorter lead times. VLSFO and LSMGO now have lead times of 2-4 days, while HSFO stands at 4-6 days, much shorter than last week's 5-7 days.

Moving to China, Dalian faces tight VLSFO and LSMGO supply, while Tianjin encounters tightness across all grades. Qingdao has limited prompt availability for VLSFO and LSMGO, with HSFO supply subject to enquiry. In southern ports like Shanghai and Guangzhou, VLSFO and LSMGO are tight, with HSFO also facing constraints in Shanghai. However, Fuzhou, Yangpu, and Xiamen boast good availability of both low-sulphur fuel grades.

Bunker fuel supply is mostly good in Hong Kong amid average demand. Lead times of around seven days are recommended, similar to the previous week. Some suppliers can offer prompt dates for smaller quantities, a source says.

South Korean ports experience tight availability across all fuel grades despite weak demand, with lead times ranging between 8-14 days. Some suppliers can still offer shorter lead times of around three days, but these deliveries depend on quantity. Adverse weather forecasts for key South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu may impact bunker deliveries intermittently throughout the week.

In Japan, sluggish bunker demand persists due to elevated prices and limited cargo availability, with adverse weather conditions further denting demand. Tokyo's VLSFO was priced about $74/mt higher than Zhoushan's on Tuesday and $65/mt higher than Singapore's. Lead times vary across key Japanese ports, from 5-8 days in Tokyo, Chiba, Osaka, and Kobe, to longer periods of 11-15 days in the ports of Mizushima and Oita.

Subic Bay in the Philippines and the Vietnamese port of Ho Chi Minh anticipate difficult bunkering conditions throughout the week, while adverse weather is expected in the Thai ports of Koh Sichang and the Kiwi port of Tauranga on 3-4 March, potentially impacting bunker operations in these regions.

South Asia

Multiple Indian ports, including Kandla, Cochin, Chennai, Visakhapatnam and Haldia, are grappling with supply shortages for VLSFO and LSMGO. Mumbai and Paradip are the most affected, with some suppliers almost running out of VLSFO and LSMGO stocks, according to a source.

Adverse weather conditions are forecast for Wednesday at the Indian port of Sikka, which may disrupt bunkering operations at the port.

In contrast to most Indian ports, VLSFO and LSMGO supply is ample in the Sri Lankan port of Colombo.

Middle East

Several shipping firms continue to avoid Rea Sea transits as Houthis scales up attacks on commercial ships passing the area. Most of these ships have been using the longer route around Africa instead of the shorter Suez Canal route. This shift in shipping routes is gradually impacting bunker demand in Fujairah.

Despite a slight slowdown in demand, prompt availability remains constrained in Fujairah due to backlogs caused by weather-induced disruptions over the weekend. Suppliers advise lead times of 7-10 days, although some can still offer prompt deliveries.

Similar supply constraints are observed in the UAE port of Khor Fakkan, with most suppliers recommending lead times of 7-10 days. However, the situation differs in the Saudi Arabian port of Jeddah, where the availability of both VLSFO and LSMGO remains satisfactory. Conversely, some suppliers in Djibouti are experiencing low VLSFO stocks but still have LSMGO available.

Meanwhile, the Omani ports of Sohar, Salalah, Muscat, and Duqm boast an ample supply of LSMGO, with prompt dates readily available.

By Tuhin Roy

Photo credit: ENGINE
Published: 28 February 2024

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Singapore: MPA issues circular on resolutions adopted at IMO MSC 109

New circular informs shipping community of the resolutions, including on use of ammonia cargo as bunker fuel, and urges the shipping community to prepare for the implementation of these resolutions.

Published

13 hours ago

March 18, 2025

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The Maritime and Port Authority of Singapore (MPA) on Monday (17 March) issued Shipping Circular No. 2 of 2025 regarding resolutions adopted by the 109th session of the Maritime Safety Committee (MSC 109) of the International Maritime Organization (IMO), which was held from 2 to 6 December 2024:

This circular informs the shipping community of the resolutions adopted by MSC 109 and urges the shipping community to prepare for the implementation of these resolutions.

MSC 109 adopted the following mandatory resolutions:

Resolution MSC.566(109) – Amendments to the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code)

This resolution adopts amendments to Chapter 16 of the IGC Code, mainly to allow the use of ammonia cargo as fuel. The amendments will enter into force on 01 July 2026 and will be given effect through the Merchant Shipping (Safety Convention) Regulations.

Resolution MSC.567(109) – Amendments to the International Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IGF Code)

This resolution adopts amendments to IGF Code regarding ship design and arrangements; general pipe design; safety functions of the gas supply system; fire protection; hazardous area zones; and ventilation requirements. The amendments will enter into force on 01 January 2028 and will be given effect through the Merchant Shipping (Safety Convention) Regulations.

MSC 109 also adopted the following resolutions:

Resolution MSC.568(109) – Amendments to the Revised recommendation on testing of life-saving appliances (resolution MSC.81(70))

This resolution adopts amendments to Part 1- Prototype Test for Life-saving Appliances, for self-righting test requirements of totally enclosed lifeboats, under paragraph 6.14.1.1 of the Revised recommendation on testing of life-saving appliances (resolution MSC.81(70)).

Resolution MSC.569(109) – Performance standards for the reception of maritime safety information and search and rescue related information by MF and HF digital navigational data (NAVDAT) system

This resolution adopts the Performance standards for the reception of maritime safety information and search and rescue related information by MF and HF digital NAVDAT system.

Resolution MSC.509(105)/REV.1 – Provision of radio services for the Global Maritime Distress and Safety System (GMDSS)

This resolution adopts the revised Recommendation on provision of radio services for the GMDSS, the Criteria for use when providing shore-based digital selective calling (DSC) facilities for use in the GMDSS, the Criteria for establishing GMDSS sea areas, the Criteria for use when providing a NAVTEX service and the Criteria for use when providing a NAVDAT service, set out in annexes 1 to 5, respectively, to the resolution. This resolution revokes resolution MSC.509(105).

Resolution MSC.570(109) – Performance standards for a universal shipborne Automatic Identification System (AIS)

This resolution adopts the revised Performance standards for a universal shipborne AIS, recognising the need for measures to prevent unauthorised entry or tampering of the ship's identity information in shipborne AIS.

Any queries relating to this circular should be directed to MPA Shipping Division via email at [email protected].

Photo credit: Maritime and Port Authority of Singapore
Published: 18 March, 2025

Alternative Fuels

AAL Shipping names methanol-ready multipurpose heavy lift vessel in China

Singapore-based AAL Shipping says it held a naming ceremony for “AAL Dubai” – a multipurpose heavy lift vessel that is methanol-ready – at CSSC Huangpu-Wenchong Shipyard in Guangzhou.

Published

13 hours ago

March 18, 2025

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AAL Shipping names methanol-ready multipurpose heavy lift vessel in China

Singapore-headquartered project heavy lift carrier AAL Shipping (AAL) on Thursday (13 March) said it held a formal naming ceremony for its fifth Super B-Class vessel, AAL Dubai.

The 32,000 dwt AAL Dubai – a multipurpose heavy lift vessel that is methanol-ready – was officially named on March 12 at the CSSC Huangpu-Wenchong Shipyard in Guangzhou, China.

The AAL Dubai is engineered to transport a vast array of cargo, including heavy lift project equipment, breakbulk, and dry bulk, all on a single voyage. With a combined lifting capacity of 700 tonnes, this vessel is designed to offer high efficiency, cargo flexibility, and economies of scale to shippers worldwide.

The vessel will now embark on its maiden voyage, joining sister vessels AAL Limassol, AAL Hamburg, AAL Houston, and AAL Antwerp in serving project cargo customers across Asia, Europe, the Middle East, and the Americas.

“We are now over the halfway mark with our Super B-Class deliveries, and those already in service are exceeding our expectations,” said Liew Teck Liong, Chief Financial Officer at AAL.

“With these vessels, we have achieved both company and industry firsts, and we look forward to redefining what a heavy lift, multipurpose vessel can accomplish as we deploy them for complex cargo challenges.”

Later this year, AAL will take delivery of the AAL Dammam, which will be shortly followed by the AAL Newcastle and AAL Mumbai that have an increased maximum heavy lift capability of 800 tonnes.

Photo credit: AAL Shipping
Published: 18 March, 2025

LNG Bunkering

Titan completes first LNG and bio-LNG bunkering op to MOL under new term contract

Titan’s LNG bunkering vessel “Alice Cosulich” delivered 500 mt of bio-LNG and 400 mt of conventional LNG to vehicle carrier “Celeste Ace” during a SIMOPS bunkering in Port of Zeebrugge.

Published

14 hours ago

March 18, 2025

Admin

Titan completes first LNG and bio-LNG bunkering op to MOL under new term contract

Titan Clean Fuels (Titan) on Monday (17 March) said it has completed the first LNG and liquefied biomethane (bio-LNG) bunkering operation of a new multi-delivery contract for Mitsui O.S.K. Lines’ vehicle carrier fleet.

On 16 March, Titan’s Alice Cosulich LNG bunkering vessel delivered 500 metric tonnes (mt) of bio-LNG and 400 mt of conventional LNG to the Celeste Ace vehicle carrier. The simultaneous operation (SIMOPS) bunkering took place in the Port of Zeebrugge’s International Car Operators (ICO) terminal.

Titan’s delivery of ISCC-EU-certified mass-balanced bio-LNG marks the first of a series of bio-LNG deliveries to the Japanese shipping company. The bio-LNG was produced using waste and residue, which reduces GHG emissions by up to 100% compared to marine diesel on a well-to-wake basis. LNG, bio-LNG, and renewable hydrogen-derived e-methane can be blended at any ratio and ‘dropped into’ existing LNG bunkering infrastructure with little to no modification.

Caspar Gooren, Commercial Director of Renewable Fuels at Titan, said: “This bunkering highlights the growing role of bio-LNG in decarbonizing international shipping today. With bio-LNG availability expanding, its deep decarbonization potential, and increasing commercial viability, the LNG pathway offers practical solutions for shipowners and operators. Moreover, with a global maritime leader like MOL putting its commercial weight behind bio-LNG, this is an exciting time for the clean fuels transition.”

Yoshikazu Urushitani, Marine Fuel GX Division General Manager at MOL, said: “We are exploring the use of ammonia and hydrogen fuels as part of our strategy to adopt clean alternative fuels, while moving to expand the use of LNG-fueled vessels and more quickly achieve a low-carbon society. We will also be early adopters of bio-LNG and synthetic LNG. Partnering with Titan, we will start using bio-LNG to lead the shipping industry in the transition to clean alternative fuels. We remain committed to adopting clean fuels to reach net zero GHG emissions by 2050.”

MOL currently operates five LNG-fuelled vehicle carriers and will have six more delivered by the middle of 2025.

Photo credit: Titan
Published: 18 March, 2025