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 demand low in Singapore
• HSFO supply tight in Zhoushan
• LSMGO availability good in Omani ports

Singapore and Southeast Asia

Bunker demand in Singapore has been subdued this week. Lead times for VLSFO have experienced significant fluctuations recently, with most suppliers now suggesting lead times of up to 14 days. However, some suppliers can accommodate stems within four days. This represents a tightening compared to the previous week, when traders recommended shorter lead times ranging between 2-9 days.

HSFO supply remains limited in the port, with recommended lead times of 8 to 15 days – unchanged from last week. Meanwhile, lead times for LSMGO vary widely, ranging between 2-8 days.

According to data from Enterprise Singapore, residual fuel oil stocks in Singapore averaged 9% lower in May compared to April. Despite a 10% increase in net fuel oil imports, the port’s fuel oil stocks dipped below 19 million bbls. Fuel oil imports surged by 515,000 bbls, more than three times the 156,000 bbls rise in exports. Additionally, the port’s middle distillate stocks declined and averaged 3% lower in May.

In Malaysia’s Port Klang, both VLSFO and LSMGO grades are well supplied. Some suppliers can provide prompt deliveries for smaller parcel sizes. But HSFO availability remains constrained due to limited product availability.

In the Indonesian ports of Jakarta and Surabaya, the availability of VLSFO and LSMGO remains favourable. Furthermore, the port of Balikpapan has an ample supply of VLSFO, with recommended lead times of around four days.

China, East Asia and Oceania

In terms of availability, VLSFO and LSMGO supply have improved in Zhoushan, with suppliers now suggesting lead times of 2-5 days, down from 5-7 days recommended last week. HSFO supply remains constrained due to the suspension of operations at the Dading oil terminal following a recent oil spill incident. Most suppliers are recommending lead times of over two weeks for HSFO in Zhoushan, according to a source.

In Northern China, the VLSFO and LSMGO grades are available in the Dalian port. Similarly, both grades are easily accessible in Qingdao and Tianjin, although HSFO supply is limited in these ports. In Shanghai, VLSFO and LSMGO availability remains good, while HSFO supply has been scarce. In Fuzhou and Xiamen, VLSFO and LSMGO grades are readily available. On the other side, in Guangzhou and Yangpu, prompt availability of both low-sulphur fuel grades remains restricted.

In Taiwanese ports, including Hualien, Kaohsiung, Taichung, and Keelung, the availability of VLSFO and LSMGO remains good, with suggested lead times of 2-3 days.

Overall, all grades are well-supplied in Hong Kong, with recommended lead times of approximately seven days.

The weather forecast predicts that Hong Kong may experience high winds and waves between Tuesday and Wednesday, which could potentially impact bunker operations.

In South Korean ports, the availability of VLSFO has become tighter as most suppliers are low on stocks. Currently, lead times for VLSFO are around two weeks, which is much longer than the 2-10 days recommended last week. On the other hand, HSFO availability has improved, with most suppliers suggesting lead times of approximately three days—a significant decrease from the 8-10 days reported last week. Prompt LSMGO is readily available in most South Korean ports.

Additionally, bunker operations in several South Korean ports, including Ulsan, Onsan, Busan, and Yeosu, may experience intermittent disruptions between Friday and Sunday due to anticipated adverse weather conditions.

In Japan, bunker demand continues to be sluggish due to high bunker prices. Tokyo’s VLSFO was priced $51/mt higher than Singapore’s and $57/mt higher than Zhoushan’s VLSFO on Tuesday. Lead times vary across key Japanese ports: around eight days in Osaka, Kobe, Nagoya, and Yokkaichi; approximately 10 days in Tokyo and Chiba; and longer periods of 12-18 days in Mizushima and Oita.

Scheduled berth maintenance between 7-15 June at several Japanese refineries could potentially impact VLSFO availability in Tokyo. This maintenance is likely to occur at crucial berths receiving crude cargo or tankers. These refineries also supply bunker fuels in Tokyo. Additionally, technical issues reported at some refineries may lead to restrictions on VLSFO supply in early June, further affecting availability and increasing lead times in Tokyo, a source says.

In Western Australia, suppliers in Kwinana and Fremantle ports can provide VLSFO and LSMGO, typically with lead times ranging from 7-8 days. In New South Wales, LSMGO is readily available in Sydney, while HSFO supply is mostly available upon inquiry. In Victoria, Melbourne offers good availability of both VLSFO and LSMGO, with ample VLSFO supply also found in Geelong. However, prompt HSFO supply can be limited in both Victorian ports.

In Queensland, Brisbane and Gladstone ports maintain sufficient stocks of VLSFO and LSMGO, with lead times of 7-8 days. HSFO availability remains constrained in Brisbane.

In New Zealand, VLSFO supply in Tauranga and Auckland is ample, and LSMGO supply remains satisfactory in Auckland. However, anticipated adverse weather conditions in Tauranga on Sunday may impact bunker operations.

In the Thai ports of Koh Sichang and Leam Chabang, adverse weather conditions are expected throughout the week. Similarly, in the Vietnamese port of Ho Chi Minh, adverse weather is anticipated between 8-10 June, which could potentially impact bunker deliveries.

South Asia

In the Indian ports of Tuticorin, Haldia, Paradip, Kandla, Cochin, and Visakhapatnam, the supply of VLSFO and LSMGO remains constrained due to supply shortages. Additionally, one supplier in Paradip has nearly run out of both grades.

Adverse weather conditions are predicted intermittently between Wednesday and Thursday at Sikka, Kandla, and Visakhapatnam ports in India, which could potentially disrupt bunker operations.

In contrast, the Sri Lankan port of Trincomalee has abundant supplies of VLSFO, LSMGO, and HSFO.

Middle East

At the UAE port of Fujairah, availability of all grades for immediate delivery remains limited, with most suppliers requiring lead times of 5-7 days.

Similarly, in the UAE port of Khor Fakkan, lead times of 5-7 days are common among suppliers.

In Saudi Arabia’s Jeddah port, there is an ample supply of VLSFO and LSMGO. In Djibouti, some suppliers are encountering shortages of VLSFO, while LSMGO remains unaffected.

In Iraq’s Basrah, there is good availability of VLSFO and LSMGO, while Qatar’s Ras Laffan is nearly depleted of both low-sulphur fuel grades.

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

By Tuhin Roy

Photo credit and source: ENGINE
Published: 5 June 2024