Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

There should be enough supply in Singapore for eastbound vessels delayed by the Suez Canal blockage, but there is no noticeable increase so far, sources said.

Published

4 years ago

March 31, 2021

Admin

The following article regarding regional bunker fuel availability outlooks for East of Suez ports with special attention to availability in Singapore has been provided by online marine fuels procurement platform ENGINE for publication on Singapore bunkering publication Manifold Times:

30 March 2021

Prompt supply remains tight in several key East of Suez bunker ports this week.

While Fujairah’s bunker market has mostly recovered from production issues two weeks ago, supply is now tighter as blending components have been held up in delayed tankers at the Suez Canal.

The cargo delay has reduced several of Fujairah’s suppliers’ ability to blend bunker fuel products. A bunker supplier has been without blendstocks and unable to quote prices for near-term deliveries. Another supplier was only able to load just over half the volume it had intended on a bunker barge because of the delays.

Two local refiners produce bunker fuels for supply in the port of Fujairah, where a total of 622,000 mt of bunker fuels was delivered in February. These two refiners also rely on imported blendstocks, but to a lesser extent than bunker suppliers without local production.

One of the refineries experienced significant production issues earlier this month, which crimped VLSFO availability and boosted Fujairah’s prices against other ports. Bunker fuel output from the refinery has now mostly recovered, according to local sources.

Availability of VLSFO has improved to bring Fujairah’s lead times down from 11 days two weeks ago, to around six days now. LSMGO stems also need to be booked around six days ahead to ensure delivery, while HSFO380 stems are particularly tight and require around 12 days of lead time in the UAE port.

Residual fuel oil inventory levels remain below the five-year average in Singapore. A considerable increase in exports from January and February has contributed to drawing the port’s stocks this month. Suppliers in the bunkering hub had built stocks in the first three weeks of March, before a doubling in exports last week pulled the inventories down 2% to 22.31 million bbls, Enterprise Singapore data shows.

Singapore’s middle distillate stocks dropped by another 1% last week, to 13.81 million bbls – their lowest levels since July last year.

Prompt deliveries of VLSFO are tight in Singapore, where lead times of around 7-8 days are recommended. Lead times are slightly shorter than last week’s 7-10 days, however, as some suppliers have better availability. LSMGO stems need to be booked about one day earlier than last week, with lead times now at 5-7 days.

Supply logistics can be a bottleneck in Singapore, with barge tank space can be particularly limited for HSFO380. This has kept lead times for the high sulphur product at 12 days or more for months.

There should be sufficient product stored in Singapore to meet a potential uptick in demand from eastbound vessels delayed by the Suez Canal blockage, but there has not yet been any noticeable increase in enquiries from these vessels, sources say. Demand has been rather muted in both Singapore and Chinese ports at the start of the week, following lower flat prices and stronger demand last week.

VLSFO and LSMGO can generally be procured at a shorter notice in Zhoushan and Shanghai, where the two grades are in ample supply among several suppliers and require around three days of lead times. Lead times for HSFO380 stems vary depending on the supplier, ranging from seven days to 11 days ahead.

Tokyo Bay remains congested with pressure on barge schedules this week. A supplier’s berth has undergone maintenance this month, limiting the port’s space for vessels to bunker in. Availability is expected to improve after the maintenance is scheduled to end in April.

VLSFO and LSMGO have become considerably tighter in South Korea’s southern ports, which include Busan. Lead times have increased from 3-5 days last week to eight days now. Availability of HSFO380 stems depend on barge availability for specific days, as only 1-2 suppliers offer the grade in South Korean ports.

Ongoing maintenance work at two local refineries has crimped resupply volumes to Far East Russian ports. Only one supplier has LSMGO available and limited volumes have pushed Russian prices for the grade up and above those in competing South Korean ports.

VLSFO, which is normally priced significantly lower in Far East Russian ports than in South Korea, has also moved within a closer price range of South Korea’s southern ports. HSFO380 is still priced lower in Russia, but limited resupply has narrowed discounts to South Korean ports.

Photo credit: ENGINE
Published: 31 March, 2021

Alternative Fuels

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

3 hours ago

March 18, 2025

Admin

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

Business

Singapore-based AET appoints Nick Potter as new President and CEO

Potter, who assumes the CEO role from Zahid Osman, also assumed the role of Vice President, Petroleum & Products at MISC Group, joining the MISC Executive Leadership Team.

Published

3 hours ago

March 18, 2025

Admin

Singapore-based AET appoints Nick Potter as new President and CEO

Singapore-headquartered AET, MISC’s petroleum arm, on Monday (17 March) announced the appointment of Nick Potter as the new President and Chief Executive Officer (CEO) of the company.

Potter also assumed the role of Vice President, Petroleum & Products at MISC Group, joining the MISC Executive Leadership Team.

With over 35 years of experience in the maritime and energy sectors, Potter has led commercial, technical, and operational teams across the globe. He previously served as Head of Shipping and Maritime for Asia, Pacific, and the Middle East at Shell, and before that, as Global Head of Maritime at BG Group.

His career began at sea as an Engineering Officer, before progressing through various roles at Shell and BG, giving him deep expertise in maritime logistics and the tanker business.

Beyond his leadership roles, Potter is a strong advocate for energy transition, maritime talent development, and seafarer welfare. He has actively contributed to key industry bodies, including OCIMF, the Singapore Maritime Foundation, and the International Chamber of Shipping's Clean Energy Marine Hubs Task Force.

Outgoing CEO Zahid Osman welcomed Potter in a symbolic leadership handover at AET’s headquarters, marking a new chapter in our journey.

“As Zahid takes on his expanded leadership role as President & Group CEO at MISC, we look forward to continuing our close collaboration as part of MISC Group,” AET added.

Photo credit: AET
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

3 hours ago

March 18, 2025

Admin

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