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ENGINE: East of Suez Bunker Fuel Availability Outlook

Prompt VLSFO and HSFO still tight in Singapore; sluggish demand in Zhoushan; several East Asian ports face weather disruptions.

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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:

7 March, 2023

  • Prompt VLSFO and HSFO still tight in Singapore
  • Sluggish demand in Zhoushan
  • Several East Asian ports face weather disruptions

Singapore

Singapore has been witnessing average demand so far this week. Availability of VLSFO and HSFO is getting tighter in the port. Some suppliers have limited stocks as they are obligated to supply bunkers to meet term contracts. Lead times of 5-8 days are recommended for VLSFO – almost same as last week. HSFO lead times have increased from 6-8 days last week, to 7-10 days now.

Availability of LSMGO remains very good in the port, with lead times unchanged at 2-3 days.

Residual fuel oil stocks in Singapore averaged 4% higher in February than in January, the latest data from Enterprise Singapore shows. The stock build was supported by a 1% uptick in net fuel oil imports.

Meanwhile, Singapore’s middle distillate stocks declined by 11% in February.

East Asia

Prompt availability of VLSFO remains slightly tight in Zhoushan as most suppliers are running low on stocks and replenishment cargoes have been delayed. But a lack of demand has prevented further tightening, a source says.

VLSFO and LSMGO stems require 3-5 days of lead time in the port, and HSFO needs 5-7 days. Lead times are unchanged from last week across all grades in Zhoushan.

Hong Kong continues to grapple with sluggish demand, a source says. Availability of all grades is normal to tight, with lead times of around seven days recommended – up from 5-6 days previously.

Strong wind gusts of 19-27 knots and waves of almost a metre are forecast to hit Hong Kong on 12 March, which might disrupt bunkering.

Bad weather is forecast intermittently in the South Korean ports of Ulsan, Onsan, Daesan, Taean and Yeosu between 9-12 March, which might impact bunker operations.

Demand has been average across South Korean ports so far this week. Availability is very tight for all grades in the country’s southern ports as most suppliers are running low on stocks, a source says. Lead times in southern ports vary widely between 5-12 days – almost the same as last week’s 3-11 days.

Meanwhile, availability across all grades has improved in western South Korean ports, with much shorter lead times of 4-5 days recommended, down from 3-11 days previously.

Both the Philippine port of Subic Bay and the Thai port of Leam Chabang are forecast experience adverse weather conditions on 14 March, which might hamper bunkering.

The Vietnamese port of Ho Chi Minh City faces rough conditions and potential bunker suspensions throughout this week, and the northern Vietnamese port of Hai Phong on 12 March.

South Asia

VLSFO and LSMGO availability remains good in India’s Mumbai, Visakhapatnam and Kandla, with short lead times of 2-3 days.

Cochin and Chennai on the southern coast of India also have good availability, while VLSFO and LSMGO remain subject to enquiry in Tuticorin and Haldia. A supplier in Paradip is almost out of VLSFO.

A supplier can offer both VLSFO and LSMGO in the Sri Lankan port of Colombo, with lead times of around five days recommended.

Middle East

Bunker availability remains under pressure for all grades in Fujairah, while demand has been weak, a source says. VLSFO and LSMGO stems require around 10-11 days in the UAE port, which is up from nine days last week. But lead times for HSFO are down from about 12 days to eight days now.

While LSMGO remains readily available in Sharjah, VLSFO has been running low, a source says.

Prompt dates are readily available for LSMGO in the Omani ports of Muscat, Salalah, Sohar and Duqm.

By Tuhin Roy

 

Photo credit and source: ENGINE
Published: 8 March, 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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