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ENGINE: East of Suez Bunker Fuel Availability Outlook

Zhoushan’s OPL bunkering remains suspended; wider Fujairah VLSFO discounts to other hubs; VLSFO availability tight in South Korean ports.

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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:

18 October 2022

  • Zhoushan’s OPL bunkering remains suspended
  • Wider Fujairah VLSFO discounts to other hubs
  • VLSFO availability tight in South Korean ports

 

Singapore

Prompt availability is still tight for all the main bunker fuel grades in Singapore. HSFO has the longest recommended lead times of 11-13 days, followed by 10-12 for VLSFO and 8-10 days for LSMGO.

LSMGO availability started tightening at the beginning of the month, while the fuel oil grades have been tight for months.

Singapore’s residual fuel oil inventories were drawn by a massive 12% in the week ending 12 October, but the stocks have still averaged 1% higher in October than in September., according to Enterprise Singapore.

 

East Asia

Bunker operations at Zhoushan’s outer port limits (OPL) have been suspended since Friday. OPL activity is likely to resume on Wednesday, when calmer weather is forecast, according to White Whale Shipping Agency.

Weather-related disruptions have led to bunker congestion in Zhoushan. The number of vessels waiting to bunker across Zhoushan's anchorages has increased by six since Monday to 19 vessels on Tuesday, according to White Whale Shipping Agency.

VLSFO availability remains tight in Zhoushan as weather-related disruptions have caused backlogs to build. Recommended lead times for VLSFO are around five days. Some suppliers can offer prompt lead times of two days for smaller quantities, sources say. Recommended lead times for LSMGO are about five days, and lead times of 5-7 days are advised for HSFO.

Bunker operations have been slowed by rough weather in some of South Korea's southern and western ports, sources say.

VLSFO availability remains tight in South Korean ports as most suppliers are running low on stocks. Only one supplier can offer VLSFO with lead times of around of five days now. The rest of the suppliers can only offer delivery dates from the first week of November, sources say.

LSMGO and HSFO availability remains steady in the South Korean ports with lead times of 4-9 days.

Availability across all fuel grades is getting tighter in Hong Kong with lead times of around seven days advised.

 

South Asia

VLSFO can be delivered with around 2-3 days of lead time in several Indian ports, including Mumbai, Mundra and Kandla on the northwest coast, and Cochin and Chennai on the southern coast.

Visakhapatnam on India’s east coast is almost out VLSFO, while availability of VLSFO has been normal in Kakinada.

VLSFO availability remains good in the Sri Lankan port of Colombo with lead times of 1-3 days.

 

Middle East

Fujairah's VLSFO price moved to discounts to Singapore and Zhoushan in the first week of October, and these discounts have more than doubled since then.

The UAE port's residual fuel oil stocks have averaged 3% bigger so far this month than in September, with a major increase in imports of Russian fuel oil barrels contributing to a net import surplus. This, together with weak bunker demand, has triggered some suppliers to lower prices in an effort to stimulate demand.

Recommended lead times for VLSFO in the port are around six days. Lead times for HSFO are seven days, and about four days for LSMGO.

By Tuhin Roy

 

Photo credit and source: ENGINE
Published: 19 October, 2022

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Incident

Singapore: Bunker spill leads to checks on all fuel pipes at other Police Coast Guard bases

Police said fuel pipes at the other three bases at Loyang, Lim Chu Kang and Gul are also being checked with inspections expected to be wrapped up on 10 February.

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The recent oil leak incident at Police Coast Guard (PCG) Brani Regional Base has prompted checks on all fuel pipes at PCG’s three other bases for leaks, according to The Straits Times on Monday (10 February). 

Responding to queries from the local news provider, the police said all fuel pipes at Brani Regional Base were inspected on 6 February while fuel pipes at the other three bases at Loyang, Lim Chu Kang and Gul are also being checked with inspections expected to be wrapped up on 10 February. 

The police also said that a preliminary assessment on the cause of the leak might be due to micro cracks in a damaged fuel pipe as a result of repeated twisting of the pipe due to the movement of the pontoons caused by tidal changes.

On 6 February, Singapore authorities confirmed that a diesel oil leak was discovered at the Brani Regional Base on 5 February, at around 11.40am (Singapore Time). 

According to a joint statement by Singapore Police Force, Maritime and Port Authority (MPA) and National Environment Agency (NEA), about 23 metric tonnes had leaked from a damaged shore fuel hose used to refuel patrol craft at Selat Sengkir. 

The leak was eventually isolated at about 3.40pm and there were no oil slicks observed.

Related: Singapore confirms bunker spill from damaged shore fuel hose at Brani Regional Base

 

Photo credit: Manifold Times
Published: 11 February, 2025

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Biofuel

NYK conducts first Japan bio bunker fuel trial on coal carrier for domestic power utility firm

Firm said it has started a biofuel test run on Noshiro Maru, operated by Tohoku Electric Power, marking the first time in Japan that a coal carrier has been used to test biofuel for a domestic power utility firm.

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NYK conducts first Japan bio bunker fuel trial on coal carrier for domestic power utility firm

Japanese shipping firm NYK on Monday (10 February) said it has started a biofuel test run on its coal carrier Noshiro Maru, which is operated by Tohoku Electric Power on 9 February.

This is the first time in Japan that a coal carrier has been used to test biofuel for a domestic power utility company. Mitsubishi Corporation Energy in the Keihin area facilitated the supply of biofuel for the vessel.

Biofuels are made from organic resources (biomass) of biological origin, such as agricultural residues and waste cooking oil, and are considered to produce virtually zero carbon dioxide (CO₂) emissions when combusted.

“Since they can be used in heavy-oil-powered ship engines, which are common on large merchant ships, biofuels are considered a key means of reducing greenhouse gas (GHG) emissions in the transition period from heavy oil to zero-emission fuels,” NYK said. 

“Using biofuel to reduce GHG emissions during sea navigation also contributes to reducing Scope 3 GHG emissions generated by transporting customers’ cargo.”

NYK added it will continue to focus on introducing biofuels and other next-generation fuels, and will contribute to reducing GHG emissions in our customers' supply chains while promoting decarbonisation in marine transport.

 

Photo credit: NYK
Published: 11 February, 2025

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Biofuel

IBIA welcomes IMO move to draft guidance change on carriage of bio bunker fuels

IBIA welcomed agreement by IMO’s Sub Committee on PPR 12 to draft Interim Guidance on the carriage of blends of biofuels and MARPOL Annex I cargoes by conventional bunker ships.

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The International Bunker Industry Association (IBIA) on Monday (10 February) said it submitted a document to IMO on the carriage of biofuels for supply to a ship for use as fuel oil on board that ship in November 2023.

This highlighted that as conventional bunker vessels were limited in carrying fuel oil of no more than 25% biofuel it presented a potential impediment to the global adoption of biofuels as fuel oil for ships and so to the ambition for the decarbonization of international shipping in the short term, as set out in the 2023 IMO GHG Strategy.

“IBIA therefore welcomes the agreement by IMO’s Sub Committee on Pollution Prevention and Response (PPR 12) to draft Interim Guidance on the carriage of blends of biofuels and MARPOL Annex I cargoes by conventional bunker ships,” it said on its website. 

The guidance allows conventional bunker ships certified for carriage of oil fuels under MARPOL Annex I to transport blends of not more than 30% by volume of biofuel, as long as all residues or tank washings are discharged ashore, unless the oil discharge monitoring equipment (ODME) is approved for the biofuel blend(s) being shipped. 

“The Interim Guidance is expected to be approved by IMO’s Marine Environment Protection Committee (MEPC 83) in April,” IBIA added. 

“IBIA’s membership represents stakeholders from across the global marine fuel value chain, and being able to draw on this technically strong and credible resource will, in its role of having consultative status to the IMO, mean that IBIA will continue to bring important matters to the attention of the wider IMO membership for due consideration.”

 

Photo credit: International Bunker Industry Association
Published: 11 February, 2025

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