Bunker Fuel

ENGINE: East of Suez Bunker Fuel Availability Outlook (7 May)

Bunker demand remains average in Singapore; prompt supply tight in Zhoushan; steady VLSFO and LSMGO supply in Saudi Arabia’s Jeddah.

Published

8 months ago

May 8, 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:

Bunker demand remains average in Singapore
Prompt supply tight in Zhoushan
Steady VLSFO and LSMGO supply in Saudi Arabia’s Jeddah

Singapore and Malaysia

Despite average demand, prompt VLSFO availability remains tight in Singapore. Several suppliers are now suggesting lead times of 6-12 days, slightly down from last week's 7-13 days.

HSFO supply has tightened in the port. Most suppliers recommend lead times of up to 16 days, but some can accommodate stems within eight days in the port. These lead times are longer than the week prior, when traders recommended lead times of 8-11 days. LSMGO is more readily available, with lead times of 2-9 days.

Residual fuel oil stocks in Singapore averaged 5% lower in April than in March, data from Enterprise Singapore shows.

In Malaysia's Port Klang, VLSFO and LSMGO grades remain readily available, with some suppliers offering prompt deliveries for smaller parcel sizes. HSFO remains tight in the port due to limited supply.

China, East Asia, and Oceania

All grades remain tight for prompt supply in Zhoushan, with suppliers recommending lead times of 5-7 days, unchanged from last week. Suppliers in Zhoushan are struggling with limited barge availability, a source says. Barge schedules are mostly tight for the remaining days of this month, another source says.

Northern China’s Dalian port has ample VLSFO and LSMGO available. Both grades are also promptly available in Qingdao and Tianjin, while HSFO supply remains tight in both ports. In Shanghai, VLSFO and LSMGO availability have improved, while HSFO remains tight. In Fuzhou and Yangpu, VLSFO and LSMGO are easily available. In Guangzhou, prompt availability for low-sulphur fuel grades remains limited. VLSFO availability has tightened in Xiamen, while LSMGO supply remains normal.

VLSFO and LSMGO are readily available in the Taiwanese ports of Hualien, Kaohsiung, Taichung and Keelung, with recommended lead times of 2-3 days, virtually unchanged from last week.

In Hong Kong, all bunker fuel grades are available, with lead times of seven days generally recommended by suppliers there.

In South Korean ports, lead times for all grades have ranged between 3-9 days.

There are weather warnings for strong wind and high waves, which could impact bunkering in southern South Korean ports such as Busan, Ulsan and Onsan until Sunday. Western South Korean ports, including Daesan and Taean, might also face bunkering disruptions this week due to high waves and strong wind gusts.

In Western Australia, both Kwinana and Fremantle ports can readily offer VLSFO and LSMGO, with recommended lead times of 7-8 days. In New South Wales, LSMGO is readily available in Sydney, while HSFO availability is subject to inquiry. In Victoria, VLSFO and LSMGO are easily available in Melbourne, while ample VLSFO supply is available in Geelong. Prompt HSFO supply can be tight in both ports.

In Queensland, both Brisbane and Gladstone ports have sufficient VLSFO and LSMGO stocks, with suggested lead times of 7-8 days. HSFO availability remains limited in Brisbane.

In the ports of Tauranga and Auckland in New Zealand, LSMGO availability is good, and VLSFO supply is also ample in Auckland. Tauranga may face possible disruptions due to the bad weather forecast on 10 May.

South Asia

VLSFO and LSMGO availability has been tight in several Indian ports, including Mumbai, Kandla, Tuticorin, Chennai, Cochin, Visakhapatnam and Haldia, as most suppliers are facing supply shortages, a source says. In Paradip, located on the eastern coast of India, one supplier has nearly run out of both grades.

Middle East

Bunker demand for all grades remains low in the UAE port of Fujairah. However, prompt availability remains tight for all grades, with suppliers projecting lead times of 7-10 days.

In the UAE port of Khor Fakkan, most suppliers are recommending similar lead times of 7-10 days.

At Saudi Arabia's Jeddah port, VLSFO and LSMGO supply has been sufficient. Meanwhile, in Djibouti, certain suppliers are experiencing shortages of VLSFO, while LSMGO supply remains normal.

By Aparupa Mazumder

Photo credit and source: ENGINE
Published: 8 May 2024

Up Next

Baltic Exchange: Bunker Report (7 May 2024)

Don't Miss

Foreship: Energy density and safety aspects of alternative marine fuels must be addressed in future ship designs

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

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

Nuclear

VARD and partners team up to explore nuclear propulsion for shipping

Project, which involves Knutsen Tankers and DNV, will evaluate fourth-generation nuclear reactor technologies for their viability in commercial shipping applications.

Published

3 days ago

January 10, 2025

Admin

VARD and partners team up in project to explore nuclear propulsion for shipping

Norway-based shipbuilder VARD on Friday (3 January) said it has partnered with the Norwegian University of Science and Technology in Ålesund, Norway and other key stakeholders in the NuProShip I project, which explores nuclear propulsion for the maritime sector.

NuProShip, short for "Nuclear Propulsion in Shipping," will evaluate fourth-generation nuclear reactor technologies for their viability in commercial shipping applications.

In this project, an extensive assessment of 99 companies developing advanced reactor technologies led to the selection of three promising reactor types:

Kairos Power (USA): Fluoride high-temperature molten salt reactor using Tri-structural Isotropic (TRISO) fuel particles, designed for robust and efficient operation.
Ultrasafe (USA): Helium-cooled gas reactor, also employing TRISO fuel particles, known for their resilience and safety in extreme conditions.
Blykalla (Sweden): Lead-cooled reactor concept utilizing uranium oxide as fuel, offering high efficiency with advanced cooling mechanisms.

VARD said TRISO fuel particles, noted for their durability and containment properties, play a crucial role in two of these reactor types.

“TRISO technology in fact, is renowned as one of the most resilient nuclear fuel types available today,” it added.

Alongside VARD, the NuProShip project is supported by other partners, including DNV, the Norwegian Maritime Administration, ship owner Knutsen Tankers, and the Spanish nuclear consultancy IDOM.

VARD’s primary contribution involves integrating these reactor systems into various vessel types, assessing the technical challenges to enable the future commercial use of nuclear-powered ships.

Photo credit: VARD
Published: 10 January, 2025