Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

Sluggish demand in Zhoushan; availability good in several Indian ports; several ports face weather disruptions.

Published

9 months ago

January 18, 2023

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:

17 January 2023

Sluggish demand in Zhoushan
Availability good in several Indian ports
Several ports face weather disruptions

Singapore

Singapore continues to see steady bunker demand and pressure on VLSFO availability, which has supported the port’s VLSFO price levels compared to other East of Suez ports. Lead times of 11-13 days are recommended for the grade in Singapore - almost unchanged from last week.

Lead times for HSFO have come down to 9-12 days this week, from almost two weeks out previously. LSMGO remains readily available with the shortest expected lead times of 4-6 days.

Residual fuel oil stocks in Singapore have averaged 2% higher in the first two weeks of January than in December, according to Enterprise Singapore. Net fuel oil imports have risen 30% so far this month, and are at a six-month high in support of stock levels.

Singapore’s middle distillate stocks have grown by 17% over the same period, helped by steady inflows.

East Asia

Zhoushan has been grappling with persistent seasonal weather disruptions since the onset of winter. Bunker operations in Zhoushan’s outer port limits (OPL) area resumed Monday evening after a weather-induced five-day suspension, according to White Whale Shipping Agency.

The weather disruptions have led ships to pile up in wait for bunkers for sustained periods in Zhoushan.

Sluggish demand and persistent weather-related disruptions have weighed on the Chinese bunkering hub’s VLSFO price. Suppliers have been compelled to price the grade at lower levels than other major Asian hubs to attract demand. Availability of the grade remains good in the port, with lead times remaining unchanged at 3-5 days.

Recommended lead times for HSFO are 5-7 days in Zhoushan - similar to last week. LSMGO remains readily available with shorter lead times of 2-3 days.

Upcoming Chinese New Year holidays from 21-27 January will mean more muted bunker activity in the country's ports as most suppliers will not take new orders during that period, sources say.

A bad weather forecast for next weekend coupled with the Chinese New Year Holidays might dampen demand further in Zhoushan in the coming week.

Meanwhile, the lead-up to the Chinese Lunar New Year has stimulated healthy demand for all grades in Hong Kong and contributed to tighten availability. Lead times of around seven days are advised for all fuel grades in the port as most deliveries are subject to barge availability.

Wind gusts of 19-22 knots and waves of more than a metre are forecast in Hong Kong over the weekend, which might impact bunker operations.

Recommended lead times for all grades vary greatly in South Korea ports, with the shortest estimated at four days and the longest at nine days.

Bad weather might hamper bunker operations across South Korean ports of Ulsan, Onsan, Daesan, Taean and Yeosu in the latter part of the week.

The Thai ports of Koi Sichang and Leam Chabang are likely to experience adverse weather conditions from tomorrow onwards, which may hamper bunkering in the coming days.

Bad weather conditions are predicted across the Vietnamese ports of Ho Chi Minh City and Hai Phong later this week, which may disrupt stem deliveries.

South Asia

Availability of VLSFO and LSMGO remains good in India’s Mumbai, with prompt dates available.

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

A supplier in Mundra has run out of stocks, while availability in Tuticorin remains subject to enquiry.

Suppliers in India's Kandla, Sikka, Mundra and Bedi are grappling with bunker backlogs, which are anticipated to ease after 22 January, a source says.

Prompt dates for LSMGO are available in the Sri Lankan ports of Colombo and Trincomalee.

Colombo has been plagued with weather disruptions in recent weeks. Intermittent spells of adverse weather are forecast in the coming days, forcing suppliers to deliver stems only when the weather permits, a source says.

Middle East

Demand remains sluggish while availability is good in Fujairah, a source says. Recommended lead times for VLSFO have come down further to four days, from seven days last week.

Lead times for LSMGO remain unchanged at five days in the UAE port, while lead times for HSFO have come down to six days, from eight in the past week.

LSMGO remains readily available in Duqm, Sohar, Salalah and Muscat in Oman.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 18 January, 2023

Milestone

Singapore retains titles as Best Global Seaport and Best Seaport in Asia

Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 AFLAS Awards.

Published

1 day ago

September 29, 2023

Admin

Singapore retains titles as Best Global Seaport and Best Seaport in Asia

The Maritime and Port Authority of Singapore on Friday (29 September) said the Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 Asian Freight, Logistics and Supply Chain (AFLAS) Awards.

These accolades recognise the contributions by the Port of Singapore serving as a key node in the global supply chain, and Singapore’s leadership in driving maritime decarbonisation and transformation.

The annual AFLAS Awards is organised by freight and logistics publication, Asia Cargo News, to honour leading service providers in the supply chain community for demonstrating leadership as well as consistency in service quality, innovation, customer relationship management and reliability. Winners were determined by votes cast by readers of the publication.

Mr Chee Hong Tat, Acting Minister for Transport and Senior Minister of State for Finance, said: “Singapore is honoured to be named the Best Global Seaport and Best Seaport in Asia. These awards are the result of the shared effort and strong collaboration between the Government, industry, unions and workers. We will continue to grow our port as an efficient, sustainable, and trusted node in global supply chains.”

Mr Teo Eng Dih, Chief Executive of MPA, said: “These awards are testament to the partnership and collaboration between Maritime and Port Authority of Singapore (MPA) with industry and international partners, the research and enterprise community, as well as unions. MPA remains committed to fostering an environment that encourages enterprise, innovation, and talent development.”

“We will continue to work with our partners to enhance Singapore’s connectivity, advance digitalisation efforts, and accelerate the decarbonisation of international shipping in line with the 2023 IMO strategy on reduction of GHG emissions from ships.”

Photo credit: Maritime and Port Authority of Singapore
Published: 29 September, 2023

Employment

Melvin Lum appointed as KPI OceanConnect Global Accounts Commercial Director in Singapore

Lum will take on the position of Commercial Director from Thomas Lee who was recently promoted to Head of APAC in a management restructure within KPI OceanConnect.

Published

1 day ago

September 29, 2023

Admin

Melvin Lum appointed as KPI OceanConnect Global Account Commercial Director in Singapore

Global marine energy solutions provider KPI OceanConnect on Thursday (28 September) announced the appointment of Melvin Lum as Commercial Director for its Global Accounts team in Singapore.

Lum will take on the position of Commercial Director from Thomas Lee who was recently promoted to Head of APAC in a management restructure within KPI OceanConnect.

The Global Accounts team is an expert unit within KPI OceanConnect, specialised in providing long-term, tailored fuel strategy solutions to a portfolio of Key Accounts on a global scale. Dedicated regional teams located in London, Houston and Singapore work seamlessly across the world and around the clock to support their clients.

Lum joined KPI OceanConnect in 2021 as Senior Key Account manager and has made a significant contribution to the development of the team and optimisation of the daily operations of the unit in Singapore. Lum has vast experience across the supply chain and previously worked with TotalEnergies, Glencore and Global Energy Group prior to joining KPI OceanConnect.

Henrik Zederkof, Head of Global Accounts at KPI OceanConnect, said: "It is always a pleasure to witness the growth of our team members, and Melvin's progression is no exception. I have full confidence in Melvin's expertise, ability to lead the unit and dedication to his team. I look forward to seeing the progress of Melvin and his team, which will undoubtedly bring significant value to our numerous partners and the wider organisation.”

"Melvin will assume a pivotal role within the Global Accounts management team, leveraging his extensive experience in supply chain management and profound insight into emerging technologies. In his new role, Melvin will further enhance our team's skill set, aligning them with our ongoing objectives of supporting our partners in their green transition and digitalisation endeavours."

Melvin Lum, Commercial Director of KPI OceanConnect Global Accounts in Singapore, said: "I am very appreciative of the support and confidence from our management team as I take on this exciting new role. I am enthusiastic to work with the team as we continue to deliver an exceptional experience to our partners and stakeholders with dedication, innovation and passion."

Photo credit: KPI OceanConnect
Published: 29 September, 2023

Biofuel

TotalEnergies Marine Fuels renews ISCC EU certification for bio bunker fuel

Firm’s operations teams in Singapore and Geneva successfully renewed its ISCC EU sustainability certification for the supply of biofuel bunkers, says Louise Tricoire, Vice President.

Published

1 day ago

September 29, 2023

Admin

TotalEnergies Marine Fuels renews ISCC EU certification for bio bunker fuel

Louise Tricoire, Vice President of TotalEnergies Marine Fuels recently said the firm’s operations teams in Singapore and Geneva successfully renewed its International Sustainability and Carbon Certification (ISCC) EU sustainability certification for the supply of biofuel bunkers.

“This means that TotalEnergies Marine Fuels can continue sourcing and supplying marine biofuels in accordance with EU renewable energy regulations ensuring the highest sustainability standards,” she said in a social media.

“It's the third year in a row that we have successfully renewed this certification, after a deep and comprehensive audit which showed zero non-conformity.”

She added marine biofuels have grown in demand among shipping companies that want to cut greenhouse gas emissions immediately.

“TotalEnergies Marine Fuels offers marine biofuels commercially in Singapore and we are starting in Europe. This certification enables us to accompany our customers in their decarbonisation journey with the best standard solutions available today.”

Photo credit: TotalEnergies Marine Fuels
Published: 29 September, 2023