Bunker Fuel Availability

ENGINE: East of Suez Bunker Fuel Availability Outlook (5 March 2024)

Very prompt VLSFO availability remains tight in Singapore; bunker demand low in weather-exposed Zhoushan; VLSFO and LSMGO supply tight in several Indian ports.

Published

7 months ago

March 6, 2024

Admin

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:

Very prompt VLSFO availability remains tight in Singapore
Bunker demand low in weather-exposed Zhoushan
VLSFO and LSMGO supply tight in several Indian ports

Singapore and Southeast Asia

Despite relatively low bunker demand in Singapore, the availability of VLSFO for very prompt dates (0-2 days) remains limited, with certain suppliers recommending lead times of 6-8 days. Some suppliers can accommodate stems for very prompt dates, but these are typically priced about $20-25/mt higher than for dates further out, according to a trader. Similarly, prompt supply of HSFO is under pressure, with lead times ranging from 6-12 days, slightly up from the previous week. Lead times for LSMGO vary between 2-9 days, maintaining consistency with the previous week's figures.

Enterprise Singapore's latest data indicates that residual fuel oil stocks in Singapore averaged 5% lower in February compared to January. Despite a 16% decline in net fuel oil imports, the port's fuel oil stocks remained above 21 million bbls for the second consecutive month. Fuel oil exports surged by 571,000 bbls, offsetting the 244,000 bbls decline in imports and contributing to the stock draw. Conversely, middle distillate stocks in Singapore rose and averaged 27% higher in February.

In Port Klang, Malaysia, the availability of VLSFO and LSMGO remains steady, but HSFO supply is limited. On the contrary, VLSFO availability is tight in the Indonesian ports of Jakarta and Surabaya, while Balikpapan boasts a good supply of the grade.

China, East Asia and Oceania

In China’s Zhoushan, availability of all bunker fuel grades remains good, with suppliers recommending lead times of 3-5 days, similar to the previous week. However, bunkering was suspended in Zhoushan on Tuesday due to rough weather conditions. Bunker deliveries are likely to resume fully on Thursday, when calmer weather is forecast.

Conversely, Dalian is experiencing constrained availability of VLSFO and LSMGO, while Tianjin is facing tightness across all fuel grades. Qingdao is encountering limited availability for prompt delivery of VLSFO and LSMGO, with HSFO supply being subject to inquiry. In southern ports like Shanghai and Guangzhou, VLSFO and LSMGO availability is tight, with HSFO also encountering constraints in Shanghai. However, Fuzhou, Yangpu, and Xiamen are reporting ample availability of both low-sulfur fuel grades.

In Hong Kong, bunker fuel supply remains good amid average demand. Most suppliers recommend lead times of approximately seven days, consistent with the previous week. However, high winds and waves are forecast in the port over the weekend, which might impact bunker operations at the port.

LSMGO demand has climbed in several South Korean ports, partly because the grade's prices in South Korea have been lower compared to nearby Chinese ports. Busan's LSMGO price was at a discount of $28/mt to Zhoushan's on Tuesday. Increased LSMGO demand has caused availability constraints and pushed lead times to nearly nine days in South Korean ports. Some suppliers can still offer stems for prompt delivery, but these are typically priced higher, a source says.

On the other hand, VLSFO and HSFO availability have improved in South Korean ports. Lead times for VLSFO and HSFO have decreased to 4-8 days and around two days, respectively, from 8-14 days last week. However, rough weather is forecast throughout this week and may impact bunkering in the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean and Yeosu.

In Japan, sluggish bunker demand persists due to high prices and limited cargo availability, which has been further exacerbated by adverse weather conditions. Tokyo's VLSFO was priced about $68/mt higher than Zhoushan's on Tuesday and $66/mt higher than Singapore's. Lead times vary across key Japanese ports, ranging from 5-8 days in Tokyo, Chiba, Osaka, and Kobe, to longer periods of 11-15 days in Nagoya, Yokkaichi, Mizushima, and Oita.

Furthermore, adverse weather forecasts for Subic Bay in the Philippines, Ho Chi Minh in Vietnam, and Tauranga in New Zealand towards the end of the week have raised concerns about potential disruptions to bunkering operations in these ports.

South Asia

Several ports across India, including Kandla, Chennai, Visakhapatnam and Haldia, are facing challenges due to shortages of VLSFO and LSMGO.

Mumbai, Cochin, and Paradip are particularly affected, with some suppliers on the verge of depleting their stocks of VLSFO and LSMGO. A supplier in Tuticorin, situated on the southeast coast of India, is also running low on VLSFO.

In contrast, the supply situation in the Sri Lankan port of Trincomalee appears stable, with normal availability of all grades of fuel and lead times of seven days recommended.

Middle East

Numerous shipping companies persist in avoiding transits through the Red Sea due to escalating attacks by Houthi rebels on commercial vessels in the area. Instead, many of these ships have been opting for the longer route around Africa, bypassing the shorter Suez Canal route. This alteration in shipping routes is gradually affecting the demand for bunker fuel in Fujairah.

Despite a slight decrease in demand, prompt availability remains tight in Fujairah due to ongoing weather-related disruptions, which have caused bunker backlogs. Suppliers suggest lead times of 7-10 days, though some can still provide quick deliveries. Similar supply constraints are noticed in the UAE port of Khor Fakkan, with most suppliers recommending lead times of 7-10 days.

However, in the Saudi Arabian port of Jeddah, both VLSFO and LSMGO are readily available. Conversely, some suppliers in Djibouti are running out of VLSFO supply, while can still supply LSMGO.

Meanwhile, Omani ports of Sohar, Salalah, Muscat, and Duqm have sufficient supply of LSMGO, with prompt delivery dates available.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 6 March 2024

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Brazil: Raízen launches new bunkering operation in Itaqui

Operation will support both coastal and oceangoing vessels at Off Port Limits, allowing the firm’s customers to avoid full port call fees and unnecessary deviations, says Paula Georgopoulos Tinoco.

Published

1 day ago

October 4, 2024

Admin

Brazil: Raízen launches new bunkering operation in Itaqui

Brazilian energy firm Raízen has launched its new bunkering operation in Itaqui at the Outer Anchorage Area, according to Paula Georgopoulos Tinoco, Bunker Sales Coordinator at Raízen on Wednesday (3 October).

The firm is providing local supplies for the grades VLSFO380 (max. 0.5%S) and LSMGO DMA (max. 0.1%S).

“The new bunkering operation will support both coastal and oceangoing vessels with different sizes and class at the Off Port Limits, allowing our customers to avoid full port call fees and unnecessary deviations at different bunkering ports,” she said in a social media post.

In September last year, Bunker Holding subsidiary Bunker One announced that it partnered with Acelen, the largest bunker producer in the Brazilian state of Bahia, to offer the only outer anchorage bunkering operation in Brazil at the time.

Starting September 2023, vessels such as large cargo ships and tankers can be supplied in the anchorage area of the Port of Itaqui in São Marcos Bay (MA).

Photo credit: Raízen
Published: 4 October, 2024

Bunker Fuel Availability

ENGINE: Americas Bunker Fuel Availability Outlook (3 Oct 2024)

Dockworkers’ strike at East and Gulf Coast ports; low demand in Houston; Raizen starts bunker operations off Itaqui.

Published

1 day ago

October 4, 2024

Admin

The following article regarding bunker fuel availability in the Americas region has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

Dockworkers' strike at East and Gulf Coast ports
Low demand in Houston
Raizen starts bunker operations off Itaqui

North America

Dockworkers across the US East and Gulf Coasts ports launched their first major strike in nearly 50 years on Tuesday, raising concerns about potential supply chain disruptions.

While the strike action directly affects container and cargo operations, sources warned that bunkering services may also face indirect delays if barge movements are hindered.

“We haven’t seen an impact on port [fuel] reserves yet, but we’re anticipating disruption,” Stone Oil’s chief operating officer Anthony Odak told ENGINE. The company supplies bunker fuels at ports along the US Gulf Coast.

Prolonged congestion at the ports could also affect the availability of bunker fuel. Although oil and gas shipments are handled through separate operational facilities, disruptions in containerized cargo movements could tighten fuel oil supply chains.

Bunker demand has been very low in Houston for prompt dates. However, the availability of all fuel grades has remained good so far this week. Most suppliers can offer VLSFO and LSMGO stems with a lead time of 5-7 days in Houston.

Bunkering was proceeding normally in the Galveston Offshore Lightering Area (GOLA) on Thursday amid pleasant weather conditions. The weather is forecast to remain calm through the weekend and most of next week. Despite this, bunker demand in GOLA has been very low this week.

The Port of New Orleans, a key Gulf Coast hub for dry bulk commodities like grains, is also experiencing severe delays in loading and unloading ships. These delays are raising shipping costs and risking supply chain disruptions. Prolonged strikes could worsen congestion and further impact industries relying on these trade routes, shipping technology company Signal Ocean stated.

All grades are tight for prompt delivery dates in the West Coast ports of Long Beach and Los Angeles. Most suppliers require more than seven days of lead time to deliver VLSFO and LSMGO stems in both ports.

Bunker fuel availability has not been affected by the ongoing strike action in the East Coast port of New York. Most suppliers are still able to offer VLSFO and LSMGO stems within five days of lead time.

Caribbean and Latin America

Bunker demand has been good in Panamanian ports amid more daily transits through the Panama Canal. Availability has also remained good for prompt dates in both Balboa and Cristobal.

Denmark's The Bunker Firm has launched new bunker operations in Cartagena, Columbia, supplying VLSFO and LSMGO.

VLSFO and LSMGO grades are readily available at Argentina’s Zona Comun anchorage. Demand has picked up this week for both the fuel grades.

Bunker fuel demand has been good in most Brazilian ports this week. VLSFO availability is good in most of the ports, according to most suppliers.

Brazilian energy company Raízen has also launched new bunker operations at Itaqui Outer Anchorage, supplying VLSFO and LSMGO.

By Debarati Bhattacharjee

Photo credit and source: ENGINE
Published: 4 October, 2024

Bunker Fuel Availability

ENGINE: Europe & Africa Bunker Fuel Availability Outlook (2 Oct 2024)

Prompt LSMGO remains tight in the ARA hub; HSFO availability good in Gibraltar; prompt bunker supply tight in Port Louis.

Published

2 days ago

October 3, 2024

Admin

The following article regarding Europe and Africa bunker fuel availability has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

Prompt LSMGO remains tight in the ARA hub
HSFO availability good in Gibraltar
Prompt bunker supply tight in Port Louis

Northwest Europe

Prompt availability of LSMGO remains very tight in Rotterdam and in the wider ARA hub, a trader told ENGINE. Some suppliers in Rotterdam are experiencing barge loading delays. This has stretched lead times for the grade from 3–5 days last week, to 7–10 days now.

Most suppliers are unable to offer LSMGO for prompt deliveries in Rotterdam, as their barges have been held up for days waiting to load product at oil terminals, the trader said.

Prompt supply of VLSFO and HSFO is good in the ARA hub, with lead times of 3–4 days recommended for both grades.

The ARA’s independently held fuel oil stocks have averaged 6% lower so far this month than across August, according to Insights Global data.

The region has imported 269,000 b/d of fuel oil in September so far, up from 223,000 b/d imported in August, according to data from cargo tracker Vortexa. The ARA has imported low-sulphur fuel oil (LSFO) and HSFO in a 55/45 ratio so far this month.

The US has emerged as the region’s biggest fuel oil import source so far this month, accounting for 15% of the total imports. The UK has come in second place, accounting for 13% of the ARA’s total imports, followed by the Bahamas (11%), Brazil (10%) and Poland (8%).

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have increased by 13% so far this month. The region has imported 293,000 b/d of gasoil in September so far, down from 355,000 b/d of gasoil imported in August, according to Vortexa data.

Bunker fuel availability is normal in Germany’s Hamburg port, a trader said. Lead times have remained steady in the past few months, with suppliers offering all three grades within 3–5 days.

Mediterranean

Prompt supply of all bunker fuel grades is good in Gibraltar. Lead times of 3–5 days are advised for optimal coverage from suppliers. Gibraltar is forecast to experience rough weather conditions in periods between today and Friday, which could impact bunkering. Wind gusts of up to 21 knots are forecast to hit the port.

Securing prompt HSFO deliveries can be difficult in the Canary Islands’ port of Las Palmas, a trader said. Lead times remain unchanged since last week, with 5–7 days advised for the grade's delivery in the port.

Availability of VLSFO and LSMGO is good in Las Palmas and suppliers are able to offer prompt deliveries, with lead times of 3–5 days for both grades.

Bunker demand is moderate in other Mediterranean ports like Piraeus, Malta Offshore and Istanbul, a trader told ENGINE.

Availability of VLSFO and LSMGO is good in the Greek port of Piraeus, the trader said. Suppliers are able to offer prompt delivery dates for the two grades in the port. Prompt HSFO supply is subject to enquiry, the trader added. Calm weather is forecast in Piraeus for the rest of the week, making it conducive to bunker there, a source said.

Prompt availability of all grades is good off Malta, a trader said. Lead times of 3–4 days are generally recommended. Adverse weather is forecast intermittently off Malta from Wednesday till Friday, which could complicate deliveries, according to a source.

In Turkey’s Istanbul port, all bunker fuel grades are readily available. Lead times of 3–4 days are advised for optimal coverage from suppliers, a trader said.

Africa

Prompt supply of VLSFO and LSMGO remains tight in South Africa’s Durban port. Recommended lead times for LSMGO stretch up to two weeks, while lead times of 7–10 days are advised for VLSFO deliveries, according to a trader.

Durban is forecast to experience adverse weather conditions between Friday and Sunday, which could impact bunkering. Strong wind gusts in the range of 19-31 knots are forecast to hit Durban during this period.

VLSFO supply is tight in Richards Bay, where lead times of 7–10 days are advised for the grade, a trader said.

Securing prompt bunker deliveries can be challenging in Mauritius’ Port Louis. Lead times of over ten days are recommended for all three grades there, a trader said. Port Louis could face bunkering disruptions between Saturday and Monday, when rough weather is forecast in the port, a source said.

In Angola’s Luanda port, a state-run bunker supplier halted VLSFO supply in August. It is yet to provide an update on when the supply will resume in the port. LSMGO availability is currently good in Luanda, with supply available by barge, a source said.

By Manjula Nair

Photo credit and source: ENGINE
Published: 3 October, 2024