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:
5 January, 2022
VLSFO supply continues to be tight in Singapore, keeping its price at slight premiums over other key ports like Zhoushan and Fujairah.
The earliest delivery date for VLSFO and HSFO380 stems in Singapore is 10-12 days ahead, compared to 5-6 days for the more ample LSMGO grade. HSFO380 continues to be tight as fewer suppliers offer it, while VLSFO supply has been squeezed partly as a result of fewer cargo inflows.
Singapore’s net fuel oil imports – which include both high and low sulphur grades – fell by 30% on the month in December and contributed to draw stock levels down to their lowest in three months, Enterprise Singapore data showed last week.
Gale-force winds hit Fujairah from the west on Tuesday, delaying some bunker operations and incoming cargo replenishments. The winds are set to normalise briefly on Wednesday before intensifying towards a peak of 37 knots on Thursday.
Bunker fuel availability was already tight in the UAE port, especially HSFO380. The earliest delivery date for the high sulphur grade is about 12 days ahead, compared to nine days for VLSFO and LSMGO stems.
A shortage of VLSFO cargo volumes in Fujairah has made barge loading schedules more unpredictable, sources say. Most suppliers are unwilling to commit to bigger stems, pushing up price premiums for larger quantities.
In Zhoushan, bunker fuel availability is mixed. VLSFO and HSFO380 grades are tight with suggested lead times of up to seven days. LSMGO availability is normal and prompt product is readily available.
Meanwhile, restrictions on container handling have been implemented in in Zhoushan’s adjoining port of Ningbo after a rise in Covid-19 cases, a source says.
China’s Ministry of Commerce has allocated 30% more low sulphur fuel oil for export in the first allotment of quotas for this year than it did last year, Reuters reports. The fuel will mostly end up in Zhoushan and other Chinese bunker ports and be sold for “export” as duty-free bonded bunkers.
Five suppliers were awarded quotas, with state-run Sinopec taking over 60% of the total. China recently allowed suppliers in Guangzhou and Shenzhen to supply bonded bunker fuels in a move to grow them as more competitively priced bunker ports – as it has with Zhoushan in recent years.
All fuel grades remain tight in South Korean ports. The earliest delivery date for VLSFO in the country’s southern Busan, Ulsan and Yeosu ports has been pushed back to 11-13 days out.
Photo credit: ENGINE
Published: 5 January, 2022
From 1 September 2021, an IMO 2020 service charge will be implemented even for ships with an exhaust gas cleaning system (scrubber) installed.
Initial exports of bunker fuel may be limited due to focus on developing domestic coastal bunker fuel market.
Sales of low sulphur 380 cSt grade significantly increased from 700 mt to 21,500 mt in March 2019 on year.
Application was made on Monday, 1 March and a hearing has been scheduled for 10.00 am, Friday 26 March at the High Court of Singapore.
A study by independent Norwegian research group SINTEF confirmed burning HSFO with a scrubber has a lower carbon footprint than using LSFO.
SIL undertook a corporate guarantee to fulfil requirements by MBSB Bank Berhad to secure facilities for TMD to run its ordinary course of business.
Webinar will offer delegates insights on the prevention of operational issues when using VLSFOs, along with an update on biofuels and bunker fuel quality trends for 2021 and its forecast for the current year.
Heating VLSFOs to prevent cold flow issues causes issues related to distillate ageing, and there is a gentle balance to be maintained when handling the product.
Research into n-paraffin distribution of VLSFOs has shown that they not only differ from MGO, but significantly differ from each other as well, states bulletin.
Bunker Holding and Dan-Bunkering have decided not to appeal the city court ruling in the case where the companies were on trial for breaching EU sanctions against Syria, states USTC.
Poll shows market participants think Singapore’s future as a bunkering hub in the near term will be impacted most by growth in alternative bunker fuels and intensifying competition from other ports in Asia.
‘We will now take the necessary time to consider and evaluate the verdict and the premises of the verdict thoroughly before making any decision of whether to appeal to a higher court,’ informs company.
