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ENGINE: East of Suez Bunker Fuel Availability Outlook

Demand weak in Fujairah; weather disruptions might hit several East Asian ports; LSMGO availability good in Omani ports.

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ENGINE East of Suez Bunker Fuel Availability Outlook

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 January 2023

  • Demand weak in Fujairah
  • Weather disruptions might hit several East Asian ports
  • LSMGO availability good in Omani ports

 

Singapore

Singapore has been witnessing steady demand so far this week. The lead-up to the upcoming Chinese Lunar New Year holiday might lend further support to demand, a source says. Recommended lead times for VLSFO remain almost unchanged from last week at 11-13 days.

Lead times of 12-14 days are recommended for HSFO in Singapore – also similar to last week. LSMGO availability is good in Singapore, with lead times of 3-5 days, which is slightly up from 2-4 days previously.

Singapore’s residual fuel oil stocks have averaged 3% higher so far in January than in December, despite a 2% decline in imports, according to Enterprise Singapore. Singapore’s fuel oil exports have plunged by 60%, resulting in a bigger net import surplus.

The port’s middle distillate stocks, meanwhile, have averaged 15% higher in the first few days of this month than in December.

 

East Asia

Zhoushan has been seeing improved demand so far this week, following a period of prolonged weakness, a source says. The port continues to price its VLSFO at competitive levels to attract demand. However, bad weather forecast for next weekend might play spoilsport, as it might hamper bunker operations at anchorage.

Replenishment cargo volumes have arrived in Zhoushan to ease VLSFO tightness, bringing down lead times to 3-5 days from almost seven days previously. Another VLSFO cargo is due to arrive around the weekend, which is likely to improve supply further.

LSMGO remains readily available with lead times of 2-3 days. HSFO availability is getting tighter in Zhoushan as some suppliers are sold out. Lead times of 5-7 days have been recommended for HSFO in the port. One supplier is likely to receive an HSFO cargo around 18 January, which might alleviate the recent tightness, a source says.

Availability of all grades remains good in Hong Kong with lead times of around seven days required. A source says suppliers in Hong Kong have been witnessing declining demand so far this week.

Southern South Korean ports have lead times of 5-7 days for all grades, while western South Korean ports require slightly shorter lead times of 3-4 days.

South Korean ports of Ulsan, Onsan, Daesan, Taean and Yeosu may witness weather-related disruptions from Friday onwards.

HSFO availability remains tight across the Indonesian ports of Balikpapan, Jakarta, Surabaya, Benoa and Batam.

Bad weather might impact bunkering in the Thai ports of Koi Sichang and Leam Chabang from today onwards and likely to persist through the week.

The Vietnamese ports of Ho Chi Minh City and Hai Phong might see delivery disruptions throughout the week, with unfavourable weather conditions forecast to hit the ports today and tomorrow, respectively.

 

South Asia

India’s Mumbai has good availability of VLSFO and LSMGO, with lead times of 2-3 days recommended.

Prompt dates for VLSFO are available in Mundra and Kandla on India’s northwest coast. LSMGO remains readily available in Kandla, while a supplier in Mundra has almost run out of stock.

Bad weather is likely to disrupt bunkering in Sikka, another port on India’s northwest coast, between Wednesday and Thursday, a source says.

Availability of VLSFO and LSMGO remains good in the southern Indian ports of Cochin and Chennai, while Tuticorin’s availability across both the grades remain subject to enquiry.

Visakhapatnam on India’s southwestern coast can offer VLSFO and LSMGO at prompt dates. Lead times of 2-3 days are recommended for VLSFO and LSMGO in Haldia on the eastern coast of India.

The Sri Lankan ports of Colombo and Trincomalee can offer LSMGO for prompt dates.

 

Middle East

Demand has reportedly been weak in Fujairah so far this week. Sources attributed lower demand to a lack of movement in bulk carriers and container vessels. Recommended lead times for VLSFO have decreased to around seven days, from 8-10 days last week.

Lead times of five days have been advised for LSMGO, down from nine days previously. Lead times for HSFO have gone up slightly in the UAE port, to eight days now, from seven days last week.

The Omani ports of Duqm, Sohar, Salalah and Muscat have very good availability of LSMGO.

By Tuhin Roy

 

Photo credit and source: ENGINE
Published: 11 January, 2023

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Biofuel

Chimbusco and SPG complete first biofuel bunkering operation in Northern China

Chimbusco’s “DA YUAN YOU 8” tanker refuelled the “HMM VANCOUVER” with 1,300 metric tonnes of B24 biofuel at Qingdao Port.

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Chimbusco and SPG achieves first biofuel bunkering operation in Northern China

China Marine Bunker (PetroChina) Co Ltd (Chimbusco) and Shandong Port Group (SPG) recently said they successfully completed the first B24 biofuel bunkering operation in Northern China on 14 June.

Chimbusco’s “DA YUAN YOU 8 ” tanker refuelled the “HMM VANCOUVER” with 1,300 metric tonnes (mt) of B24 biofuel at Qingdao Port.

Chimbusco said the successful bunkering operation not only marks a milestone in the bonded biofuel bunkering business for international voyage vessels in northern China but also represents a critical milestone in the green and low-carbon transformation of the shipping industry around the Bohai Sea and throughout northern China. 

B24 biofuel is a blend of 24% waste cooking oil and 76% high-sulphur fuel oil. Authoritatively certified, the company said this fuel can significantly reduce carbon emissions from vessel operations by up to 20%, providing shipowners with an efficient and convenient low-carbon solution to comply with increasingly stringent International Maritime Organization (IMO) emission reduction regulations. 

Since the beginning of this year, Chimbusco said it has achieved top records of bunkering volumes in the green fuel sector. From the first successful operation at Ningbo-Zhoushan Port in eastern China to subsequent bunkering operations in Shenzhen, Xiamen, and other major ports across the country, the company has further consolidated its regular supply capabilities. 

During this in-depth cooperation with SPG’s Qingdao Port, Chimbusco’s “Green Energy Label” made its debut at the operation site. 

“This further confirms that Chimbusco is deploying green fuel bunkering services to help Chinese ports accelerate the construction of a maritime green energy supply network,” the company said. 

 

Photo credit: Shandong Port Group
Published: 20 June, 2025

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Ammonia

Korea to develop global standards for discharge of toxic effluent from ammonia-fuelled ships

KR and major Korean shipyards such as HD Hyundai Heavy Industries, HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Samho and Samsung Heavy Industries will be part of the group.

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Korea to develop global standards for discharge of toxic effluent from ammonia-fuelled ships

Classification society Korean Register (KR) said it has launched a joint working group to establish international standards for the safe discharge of toxic ammonia effluent generated from ammonia-fuelled ships.

Major Korean shipyards such as HD Hyundai Heavy Industries, HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Samho, Samsung Heavy Industries, Hanwha Ocean, and the Korea Testing & Research Institute (KTR) will be part of the group. 

KR said ammonia is attracting attention as an eco-friendly alternative fuel that does not emit carbon dioxide, a greenhouse gas, but due to its strong toxicity and concerns about marine pollution, it is essential to establish separate safety standards. 

In particular, ammonia effluent generated from wet treatment systems currently has no clear treatment standards, which causes considerable technical and operational uncertainty in ship design and operation.

Accordingly, the group aims to establish international standards related to the storage, treatment, and discharge of ammonia wastewater generated from ships and to officially propose this to the International Maritime Organization (IMO) through the Korean government.

The launch of this consultative body is a follow-up measure to a proposal by KR and the Korean government to the IMO in 2024 for the need to establish safety standards for ammonia effluent, which was officially approved at the 83rd IMO Marine Environment Protection Committee (MEPC) in April 2025. The group plans to propose a draft standard to the IMO in 2026 and lead international discussions.

Kim Tae-seong, Head of the KTR headquarters, said: “We will provide reliable scientific data to establish ammonia wastewater management guidelines and treatment standards. We will actively cooperate to secure the international competitiveness of the domestic shipbuilding and shipping industries.”
Kim Kyung-bok, Vice President of KR, said: “This consultative body is a symbolic case of our shipbuilding and shipping industries joining forces to lead the establishment of international safety standards based on our country’s advanced technologies.”

“KR will continue to support the development of alternative fuel safety standards and international standardisation efforts together with our government.”

 

Photo credit: Korean Register
Published: 20 June, 2025

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Legal

Florida bunker supplier indicted over alleged USD 5 mil SEA Card fuel purchase fraud

Owner of Independent Marine Oil Services, allegedly submitted fake invoices to US Navy ships and other vessels through the SEA Card Program, which allows US vessels to purchase fuel from suppliers at ports.

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RESIZED Pepi Stojanovski from Unsplash

The US Department of Justice recently said a federal grand jury in Miami returned an indictment recently charging a Florida business owner with multiple counts of wire fraud, money laundering, and forgery for his alleged role in orchestrating a scheme to defraud the US Department of Defense and other federal agencies. 

He allegedly did so by submitting altered and fake invoices to US Navy ships and other vessels through the SEA Card Program, which allows US vessels to purchase critical fuel from suppliers at ports around the world.

According to court documents filed in the Southern District of Florida, between August 2022 and January 2024, Jasen Butler, 37, of Jupiter, Florida, the owner of Independent Marine Oil Services LLC, submitted dozens of falsified documents to multiple U.S. warships — including the USS Patriot — demanding and receiving over USD 5 million dollars in payments for phony expenses that Butler had not incurred. 

These ships were attempting to purchase fuel in international ports such as Saudi Arabia, Singapore, and Croatia, among others. Butler also concealed his identity from government officials by using a false name and feigning employment by a fictitious fuel division of a different company. As alleged in the indictment, Butler used the millions in fraud proceeds to personally enrich himself and purchase multiple properties, including in Florida and Colorado. 

“This indictment sends a clear, public message: the Antitrust Division and its Procurement Collusion Strike Force under President Trump will not rest until all who defraud the brave men and women of the U.S. military and the American taxpayers receive swift justice,” said Assistant Attorney General Abigail A. Slater of the Justice Department’s Antitrust Division.

“Our office is steadfast in its commitment to prosecute individuals that seek to unjustly profit at the expense of the U.S. military,” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida. “Such fraud undermines military readiness and jeopardizes the dedicated service members who selflessly defend our country.”

“Mr. Butler’s alleged involvement in unlawfully submitting fraudulent invoices related to U.S. naval ships receiving fuel during port visits is an affront to the warfighter and taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS remains committed to thoroughly investigating those who commit fraud impacting the Department of Navy.”

“Those who exploit the Department of Defense for personal gain — by inflating costs, falsifying bids, or manipulating the contracting process — will be relentlessly pursued and held accountable,” said Special Agent in Charge Jason Sargenski of the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS), Southeast Field Office. 

“DCIS and our law enforcement partners remain unwavering in our mission to protect taxpayer dollars and preserve the integrity of DoD contracts that directly support our nation’s warfighters.”

If convicted, Butler faces maximum penalties of 20 years in prison for each count of wire fraud, up to 10 years for each count of forgery, and up to 10 years for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

The case was investigated by the Coast Guard Investigative Service, Defense Criminal Investigative Service, and Naval Criminal Investigative Service.

 

Photo credit: Pepi Stojanovski from Unsplash
Published: 20 June, 2025

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