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ENGINE: East of Suez Bunker Fuel Availability Outlook

20 Apr 2022

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:

19 April 2022

  • Prompt HSFO tight in Fujairah and Singapore
  • Singapore port authority mulls additional fuel quality tests
  • Availability normal in Hong Kong and Zhoushan

Singapore

HSFO380 and VLSFO availability is “super tight” in Singapore and requires 10-12 days of lead time, while LSMGO is more readily available with 3-4 days ahead recommended.

Some suppliers remain hesitant to offer HSFO380 in Singapore following mass organic chloride contamination and requests from buyers for more elaborate fuel screening. A few suppliers can offer the grade in limited quantities for deliveries from 1 May.  

An investigation by the Maritime and Port Authority of Singapore (MPA) found that around 200 ships have bunkered HSFO380 contaminated with organic chlorides in Singapore.

The MPA said last week that it is considering implementing additional quality tests in Singapore to screen for “unacceptable chemicals” and is in discussions with industry players about this.

Singapore’s fuel oil inventories have fell by 4% in the week to 13 April, while those of middle distillates grew by 8%, according to Enterprise Singapore data.

Fuel oil was drawn out of storage despite a 18% weekly increase in net fuel oil imports. Fuel oil cargoes mostly arrived in Singapore from the US, Malaysia and Brazil, while departing for Malaysia, China, Bangladesh, Fujairah and Guam, according to Vortexa cargo data.

Gasoil mostly arrived from South Korea and China.

East Asia

Hong Kong has seen bunker demand pick up over the past few weeks, after the lifting of quarantine rules, sources say. Availability is normal across all grades and requires 5-6 days of lead time. Some suppliers can offer prompter deliveries of VLSFO.

Bunker operations resumed in Zhoushan on Saturday after weather-triggered suspensions last week. Congestion is reported minimal, sources say. Availability is normal for VLSFO and LSMGO in Zhoushan, some suppliers can offer prompt deliveries. HSFO380 availability is tighter and requires 6-7 days of lead time.

Availability is slightly tight in South Korean ports. VLSFO and LSMGO grades require 5-10 days of lead time, sources say. Demand remains roughly steady.

In Port Klang, a supplier can offer limited volumes of VLSFO and LSMGO for prompt deliveries, sources say.

South Asia

In Colombo, prompt deliveries for LSMGO and VLSFO are difficult due to the tight barge schedules and require 8-9 days of lead time, sources say.

Bunker fuel availability remains normal at India’s Mumbai port. Some suppliers can offer prompt deliveries for VLSFO and LSMGO, sources say. In Mundra, HSFO380 and VLSFO availability is normal and requires 5-6 days of lead time, while LSMGO is not available, sources say.

Availability in Visakhapatnam is normal for VLSFO and LSMGO, a supplier can offer prompt deliveries.

Middle East

Availability is tight for all fuel grades in Fujairah. Lead times of around 6-7 days are recommended for VLSFO and LSMGO, and a longer 10 days for HSFO380.

Suppliers in Fujairah are hesitant to offer smaller stem sizes and are picking and choosing deals, a source said. Barge delivery schedules have come under pressure, contributing to tighten supply.

Availability of VLSFO and LSMGO is normal in the Omani ports of Duqm and Sohar and requires 2-4 days of lead time, sources say.

 

Photo credit and source: ENGINE
Published: 20 April, 2022

 

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