Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

Indonesian ports unscathed after earthquake; still tight availability in Hong Kong; Zhoushan grapples with more weather disruptions.

Published

2 years ago

November 23, 2022

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:

22 November 2022

Indonesian ports unscathed after earthquake
Still tight availability in Hong Kong
Zhoushan grapples with more weather disruptions

Singapore

Availability across all fuel grades remains tight in Singapore. Recommended lead times for VLSFO in the port are 9-11 days, while 7-10 days are required for HSFO.

The port’s residual fuel oil inventories have averaged 4% lower so far in November compared to October, despite a big increase in net imports, according to Enterprise Singapore.

HSFO cargoes have primarily arrived from Turkey so far this month, followed by Russia and Malaysia, going by Vortexa cargo tracking data.

Some suppliers have held back offers for HSFO in Singapore, which has contributed to keep its price elevated, a source says. Lead times of 7-10 days are recommended for HSFO in the port.

East Asia

Bunkering operations in Zhoushan’s outer port limits (OPL) might be suspended by bad weather from the evening of 22 November, according to White Whale Shipping Agency. Strong winds ranging between 19-27 knots are forecast to hit the port. OPL bunkering is likely to resume on 23 November’s evening, when calmer weather is forecast.

Availability of VLSFO remains steady in Zhoushan, with recommended lead times of five days. Lead times of seven days are required for HSFO in the port.

LSMGO remains extremely tight in Zhoushan as several suppliers have almost run out of stocks. Replenishment cargoes are due to arrive in the end of November, which is likely to alleviate the situation, a source says. Lead times for the grade are subject to enquiry currently.

Meanwhile, availability across all grades remains steady in South Korean ports, with recommended lead times of five days. Bunkering might be hampered by rough weather in southern South Korean ports including Busan and Yeosu between 23-24 November. Delivery of stems are subject to weather conditions currently, a source says.

Availability of prompt dates across all grades in Hong Kong remains tight, with lead times of 7-8 days. One supplier can accommodate shorter lead times for VLSFO, a source says.

In Indonesia, the effects of a 5.6-magnitude earthquake that hit the Cianjur region on Monday have mostly been felt in the western parts of Java, while suppliers continue to deliver stems in the ports of Jakarta, Surabaya and Balikpapan, a trader says.

South Asia

Several Indian ports, including Mumbai, Mundra and Kandla on the northwest coast, and Cochin and Chennai on the southern coast, have good availability of VLSFO with lead times of 2-3 days.

Meanwhile, VLSFO availability is subject to inquiry in Tuticorin.

Visakhapatnam and Haldia on India’s east coast have recommended lead times of 2-3 days for VLSFO. Suppliers in Paradip have almost run out of VLSFO.

One supplier can provide prompt dates for all the grades in the Sri Lankan port of Colombo.

Middle East

Fujairah's suppliers have been grappling with low demand for VLSFO since the beginning of October. Less VLSFO sales contributed to pull down Fujairah’s total bunker sales by 2% in October, according to data compiled by Fujairah Oil Industry Zone (FOIZ) and S&P Global Commodity Insights.

Sources attributed lower demand to a lack of movement in bulk and container vessels.

VLSFO stems can be delivered in Fujairah in five days, while recommended lead times for LSMGO and HSFO are four days.

Very prompt deliveries (0-3 days) of VLSFO are available in the Omani port of Sohar. Prompt LSMGO is also available in Duqm and Sohar, and typically requires lead times of 2-3 days.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 23 November, 2022

LNG Bunkering

China: Ningbo Zhoushan Port completes first LNG bunkering operation for 2025

Bunkering vessel “Hai Yang Shi You 302” supplied more than 10,000 cubic metres of LNG bunker fuel to containership “MSC Adya” at the Ningbo-Zhoushan Port port on 5 January.

Published

3 days ago

January 10, 2025

Admin

China: Ningbo Zhoushan Port completes first LNG bunkering operation for 2025

Zhejiang Pilot Free Trade Zone Zhoushan Area on Wednesday (8 January) said Ningbo-Zhoushan Port successfully completed its first LNG bunkering operation for the year.

Bunkering vessel Hai Yang Shi You 302 supplied more than 10,000 cubic metres (m3) of LNG bunker fuel to containership MSC Adya at the port on 5 January.

Zhejiang Seaport International Trading, the bunker supplier for the operation, successfully obtained the Zhoushan Anchorage LNG bunkering licence in June 2024, extending refuelling services from dock to sea.

The company’s services cover Meishan, Chuanshan, Daxie and other port areas.

As China's first river-sea LNG transport and bunkering ship, Hai Yang Shi You is currently placed permanently at Ningbo Zhoushan Port, providing a variety of bunkering methods such as ship-to-ship and ship-to-shore.

Zhejiang Seaport International Trading will continue to expand the scope of bonded LNG bunkering operations and new alternative fuels such as green methanol, ammonia and biofuels in the Zhoushan Area.

Photo credit: Zhejiang Pilot Free Trade Zone Zhoushan Area
Published: 10 January, 2025

Business

Shandong Port Group bans US-sanctioned tankers from entering its ports

Group has prohibited ports to dock, unload or provide ship services to vessels on the Office of Foreign Control list managed by the US Department, according to a Reuters news report.

Published

3 days ago

January 10, 2025

Admin

Shandong Port Group bans US-sanctioned tankers from entering its ports

China’s Shandong Port Group has reportedly blocked tankers affected by US sanctions from entering its ports, according to an exclusive news report by Reuters on Wednesday (8 January).

Citing a notice from the port, which was issued on 6 January and shared to Reuters by traders, the Group has prohibited ports to dock, unload or provide ship services to vessels on the Office of Foreign Control list managed by the US Department.

In another notice released on 7 January, the ban came after sanctioned tanker Eliza II unloaded at Yantai Port in early January.

Shandong Port operates major ports on the east coast of China including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

The traders said the ban could slow imports into China, the world’s largest oil importing nation, and increase shipping costs.

Photo credit: Shandong Port Group
Published: 10 January, 2025

Business

US DoD designates COSCO Shipping and CNOOC as ‘Chinese military companies’

COSCO Shipping has responded that the company and its subsidiaries ‘have consistently adhered to local laws and regulations, maintaining strict compliance in all international operations’.

Published

3 days ago

January 10, 2025

Admin

China: Cosco Shipping and bp to explore collaboration into methanol bunker fuel

The US Department of Defense (DoD) on Tuesday (7 January) has added China’s state-owned shipping company COSCO Shipping and two of its subsidiaries to its list of companies for allegedly having links to the Chinese military.

The subsidiaries are COSCO SHIPPING (North America) and COSCO SHIPPING Finance.

DoD released the update to the names of "Chinese military companies" operating directly or indirectly in the United States in accordance with the statutory requirement of Section 1260H of the National Defense Authorisation Act for Fiscal Year 2021. The Department said it will update the list with additional entities as appropriate.

Updating the Section 1260H list of "Chinese military companies" is an important continuing effort in highlighting and countering the People’s Republic of China's (PRC) Military-Civil Fusion strategy, DOD added.

The list also included other Chinese shipping-related companies such as shipbuilders China Shipbuilding Trading and China State Shipbuilding Corporation, oil company China National Offshore Oil Corporation (CNOOC), CNOOC China and CNOOC International Trading.

Shipping container manufacturer China International Marine Containers (CIMC) was also included on the list of companies.

In a response to the move, COSCO Shipping said it has noted the recent inclusion of the company and its subsidiaries to the sanctions list.

“COSCO Shipping and its subsidiaries have consistently adhered to local laws and regulations, maintaining strict compliance in all international operations,” it said on its website.

“We remain committed to facilitating global trade and providing high-quality commercial shipping and logistics services to clients worldwide, including agricultural producers, manufacturers, energy firms, retailers, and exporters in the United States.”

“We emphasise that none of the aforementioned companies are ‘Chinese military companies’. We will engage with U.S. authorities to clarify this matter. This designation does not impose sanctions or export controls, and our global operations will continue uninterrupted.”

Photo credit: COSCO Shipping
Published: 10 January, 2025