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ENGINE: East of Suez Bunker Fuel Availability Outlook

Singapore’s MPA traces contaminated HSFO origin to Khor Fakkan; two Korean refiners halt flows to bunker market amid low stocks; HSFO particularly tight major bunker hubs

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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:

10 May 2022

  • Singapore’s MPA traces contaminated HSFO origin to Khor Fakkan
  • Two Korean refiners halt flows to bunker market amid low stocks
  • HSFO particularly tight major bunker hubs

Singapore

HSFO availability remains “super tight” in Singapore. Recommended lead times are up to two weeks. Some suppliers can offer with shorter lead time but priced at a premium, a trader says. Recommended lead times for VLSFO are around 10-13 days, while LSMGO has a shorter lead time of 4-7 days.

Bunker demand is said to be normal in Singapore, sources say.

The Maritime and Port Authority of Singapore (MPA) launched an investigation into HSFO contamination in the port when alarms were raised in March. The MPA has now found that HSFO contaminated with organic chlorides was loaded at the UAE's Port of Khor Fakkan before being shipped as cargo to Malaysia’s storage facility in Tanjong Pelepas, where it was further blended and later delivered to storage facilities in Singapore.

As a preventive measure, the MPA has made Chlorinated Organic Compounds testing mandatory as part of its fuel quality measures.

Singapore’s weekly middle distillate stocks plunged 11% lower in the week to 4 May, when they were only at half their levels of a year earlier, according to Enterprise Singapore. Residual fuel oil inventories, meanwhile, grew by 6% on the week.

Singapore increased its fuel oil imports from Brazil, Venezuela and Japan in the first week of May compared to the monthly average for April, according to cargo tracker Vortexa.

Nearly half of its fuel oil exports were bound for China in the first week. Cargoes have also increasingly departed for Saudi Arabia, ahead of its summer season and peak demand for fuel oil to power air-conditioning systems.

East Asia

Bunker demand has been stronger in Hong Kong in the weeks since quarantine restrictions were lifted. The flow of enquiries was good in April and that trend has continued into this month, a trader says. This contributed to tighten supply into May.

VLSFO availability has later improved in Hong Kong as suppliers have brought in replenishment cargoes to cater to the pickup in demand, sources say. Recommended lead times are around 5-7 days. A supplier expects a VLSFO replenishment cargo to arrive by 13 May, a source says.

HSFO is tight in Hong Kong as only available with some suppliers. LSMGO availability is good, and some suppliers can offer prompt deliveries.

In South Korean ports, bunker fuel availability is tight across all grades. Two refineries have stopped offering bunker fuels for the rest of the month due to low inventories and pressure to meet domestic fuel demand. Recommended lead times are around 7-10 days across all grades.

Demand is said to be normal in South Korean ports.

Availability of VLSFO and HSFO is tight in Zhoushan, sources say. Recommended lead times for VLSFO are around 10 days, while some supplier can offer limited prompt deliveries. LSMGO availability is better and prompt deliveries is possible. Bunker demand has picked up this month, sources say.

In the Philippines’ Manila, availability for LSMGO is normal with recommended lead times at around three days.

South Asia

Bunker fuel availability remains normal in India’s Mumbai. Some suppliers can offer prompt limited deliveries. In Mundra, VLSFO and HSFO availability is normal and recommended lead times are around 6-7 days. LSMGO still remains out of stock, a trader says. Bunker demand is said to be normal.

Bunker deliveries in Indian ports of Visakhapatnam and Kakinada were suspended on Tuesday morning due to Cyclone Asani.

In Colombo, availability is slightly tight across all grades. A supplier has run out of LSMGO, while VLSFO is in better stock. Another supplier can offer both grades, but prompt deliveries are made difficult by a busy barge schedule, sources say.

HSFO is tight due to lack of product availability in Colombo. A supplier expects a replenishment cargo to arrive next week, a source says.

Middle East

In Fujairah, prompt deliveries are slightly difficult to find, a trader says. Recommended lead times for VLSFO and LSMGO are around seven days.

HSFO remains tight in Fujairah, as in many other key regional ports. Recommended lead times are up to two weeks, with more prompt deliveries incurring higher price premiums, sources say.

Bunker fuel availability is normal in the Omani ports of Duqm and Sohar, where a supplier can offer prompt deliveries, sources say.

 

Photo credit and source: ENGINE
Published: 11 May, 2022

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Interview

ZeroNorth: Singapore’s pioneering e-BDN bunkering project makes waves internationally

‘This is very much commercially driven as parties in the regions are still trying to figure out how e-BDNs are relevant for their respective locations,’ Kenneth Juhls, Managing Director of ZeroNorth Bunker tells Manifold Times.

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Kenneth Juhls, Managing Director, ZeroNorth Bunker,

The Maritime and Port Authority of Singapore (MPA)’s pioneering electronic bunker delivery note (e-BDN) project for the republic’s maritime sector has been steadily gaining attention from      overseas, observes the Managing Director of digital bunkering platform solutions provider ZeroNorth Bunker.

“We currently see interest from bunker buyers, shipping firms, barge owners and operators, fuel suppliers and a few port authorities based at the ARA, Mediterranean, Middle East, and the U.S. who are all eyeing to see how the e-BDN project at Singapore turns out,” Kenneth Juhls told Manifold Times.

“This is very much commercially driven as parties in the regions are still trying to figure out how e-BDNs are relevant for their respective locations.”

According to Juhls, recent implementation of the Singapore-Rotterdam Green and Digital Shipping Corridor (GDSC) would suggest that the Amsterdam-Rotterdam-Antwerp (ARA) region would be the “next step” to expand e-BDN bunkering operations.

“I see ARA as a good next step to expand e-BDN. ZeroNorth is very keen to engage with all port authorities to share knowledge and hands on experience based on the deployment of e-BDN bunkering operations at Singapore,” he said.

“Obviously, we would love to have a full end-to-end digital solution where the e-BDN is receiving verified information from the mass flowmeter (MFM) so there is no manual intervention; much like Singapore port.

“However, in practise one does not need a MFM-equipped bunker tanker to be able to perform e-BDN bunkering operations.”

Juhls explained digital bunkering platforms are also designed to be adaptive to different situations by allowing manual entry of data in certain circumstances.

“In Singapore, we are still in the integration phase of seamlessly connecting MFM data to the e-BDN system. In the interim, manual data entry, where personnel the tablet to take a photo of the bunker metering ticket and the eBDN app using OCR technology to auto extract the data receipt and key similar information into the tablet, is still being performed,” he said.

“In my understanding, phase two of MPA’s e-BDN integration will look into eliminating this action.”

Moving forward, Juhls says that he wishes for the shipping industry to adopt e-BDN solutions at a quicker pace.

“Singapore is the biggest bunkering port, and thus is a perfect location to kickstart momentum on e-BDN. But we also need to include the whole shipping industry for      it to work well,” he said. “We hope that together we’ll be able to spur faster global adoption of e-BDN and enable widespread digital transformation.”

Related: SMW 2024: Singapore-Rotterdam Green and Digital Shipping Corridor partners to implement first-mover pilot projects

 

Photo credit: ZeroNorth
Published: 24 April 2024

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Alternative Fuels

Platts proposes to launch Singapore bio-bunker fuels market-based assessment

Proposal is on the back of growing interest for blended bio-bunkers in Singapore, the world’s largest bunkering hub, amid increasing pressure on the shipping sector to decarbonise.

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Platts, part of S&P Global Commodity Insights, on Tuesday (23 April) proposed to launch a new daily market-based delivered Singapore bio-bunker assessment, effective 1 August.

This proposal is on the back of growing interest for blended bio-bunkers in Singapore, the world's largest bunkering hub, amid increasing pressure on the shipping sector to decarbonise.

The new assessment would reflect marine fuel blend of biodiesel with low sulphur fuel oil. Platts would publish the Singapore bio-bunkers market-based assessment as a differential to Platts Marine Fuel 0.5% (AMFSA00), and as an outright value.

The assessment specifications would be as follows:

Platts proposes to launch Singapore bio-bunker fuels market-based assessment

Other delivery periods and volumes may be considered in the Platts Market on Close assessment process and normalised back to the above specifications.

Bio-bunkers stems must be incompliance with the EU's Renewable Energy Directive, or RED requirements, and meet sustainability requirements such as ISCC or RSB sustainability criterions.

Platts will not consider bio-bunkers that use palm oil as a bio-component.

International Organization for Standardization is revising the ISO 8217 standards to include additional requirements for blended bio-bunker. The assessment would reflect standards set in the document ISO 8217:2024 Petroleum products -- Fuels (class F) -- specifications of marine fuels, as well as standards set by Singapore's Maritime Port Authority on specifications of marine biofuels (WA 2:2022). Platts is seeking specific feedback on these standard requirements.

Platts is also seeking specific feedback on the reference density of blended bio-bunkers.

The assessment would be published on Platts Biofuels Alert (PBF2500), in the Bunkerwire Report, Bunkerwire Monthly, Biofuelscan report and Biomass-Based Diesel Report.

The new daily bio-bunkers assessment would be timestamped to 5.30 pm Singapore time and follow the Singapore publishing schedule.

Platts spot price assessments consider market information reported to Platts and published throughout the day, including firm bids and offers, transactions and indications of value. In the absence of observable spot market activity, Platts may consider other verifiable data reported. This information will be published as price heards.

At present, Platts publishes a daily cost-based B24 Singapore bio-bunkers assessment reflecting a ratio of 76% fuel oil based on Platts benchmark Marine Fuel 0.5% Bunker Dlvd Spore $/mt assessment (MFSPD00) and 24% used cooking oil methyl ester based on the Platts UCOME FOB Straits $/mt assessment (UCFCB00). This calculated price assessment will continue to be published alongside the proposed new assessment and will be renamed “Platts B24 calculated bio-bunker Singapore.”

Related: Platts launches new blended bio-bunkers assessment in Singapore

 

Photo credit: Justin Lim on Unsplash
Published: 25 April 2024

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Winding up

Singapore: Annual general meetings scheduled for Xihe Holdings subsidiaries

Annual general meetings will be held between 8 to 9 May for Hua Zhong Shipping, Dong Ya Tankers, Dong Sheng Tankers and Da Xin Tankers to receive an update on firms’ liquidation.

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RESIZED Jo_Johnston from Pixabay

Several notices were published on the Government Gazette on Tuesday (23 April) regarding the annual general meetings to be held between 8 to 9 May for Xihe Holdings subsidiaries Hua Zhong Shipping, Dong Ya Tankers, Dong Sheng Tankers and Da Xin Tankers. 

Annual general meetings for Hua Zhong Shipping are to be held on 8 May at the following times:

For the company: 2pm
For the creditors: 3pm

Annual general meetings for Dong Ya Tankers are to be held on 9 May at the following times:

For the company: 10am
For the creditors: 11am

Annual general meetings for Dong Sheng Tankers are to be held on 9 May at the following times:

For the company: 2pm

Annual general meetings for Da Xin Tankers are to be held on 8 May at the following times:

For the company: 10am
For the creditors: 11am

The agenda for all the meetings are:

  1. To receive an update on the liquidation.
  2. To receive an account of the Liquidators’ acts and dealings, and of the conduct of the winding up

The following are the details of the liquidator:

Ho May Kee
Liquidator
c/o 8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960

Xihe Holdings Pte Ltd and its subsidiaries are owned by the Lim family, who are also the owners of the embattled Hin Leong Trading.

Related: Singapore: Da Xin Tankers, Dong Ya Tankers, Hua Zhong Shipping to be wound up
Related: Singapore: Annual general meetings scheduled for Xihe Holdings subsidiaries

 

Photo credit: Jo_Johnston from Pixabay
Published: 25 April 2024

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