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ENGINE: East of Suez Bunker Fuel Availability Outlook

Rough weather hampers bunkering in Zhoushan; LSMGO availability good in Omani ports; prompt availability is tight in Fujairah.

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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:

30 May 2023

  • Rough weather hampers bunkering in Zhoushan
  • LSMGO availability good in Omani ports
  • Prompt availability is tight in Fujairah

 

Singapore

Singapore has been witnessing average demand so far this week. Prompt availability is tight for all grades in the bunker hub.

VLSFO and HSFO require lead times of 9-11 days and 7-12 days, respectively – up from 8-9 days and 6-10 days in the previous week.

Recommended lead times for LSMGO have also increased to 6-9 days from 5-7 last week.

Singapore’s residual fuel oil stocks have averaged 19% lower so far in May than across April, according to Enterprise Singapore. The port’s net fuel oil imports have plunged 23% lower so far this month and to their lowest level since last August. Both imports and exports are down this month. Fuel oil imports are down by 22% to a 15-month low of 22%, and fuel oil exports have also declined by 20% to a seven-month.

The port’s middle distillate stocks have also declined by 10% on average compared to April’s average.

 

East Asia

Most suppliers in Zhoushan are running low on VLSFO primarily due to tightness in domestic supply, a source says.

China produced 1.07 million mt of VLSFO in April, dropping by nearly 10% from a year ago, according to data information provider JLC. Multiple factors such as lower margins, refinery maintenance and lack of blending components for VLSFO led to a drop in production, JLC says.

“But the tightness of barges continues, and the tightness of barges is particularly serious, especially in Shandong ports and Zhoushan,” adds independent bunker broker Phoebe Li and Manifold Times.

Also, the yearly decline in Chinese iron ore production in April has resulted in fewer iron core carriers calling in Chinese ports. This has dented bunker demand in Chinese ports including Zhoushan. The low bunker demand coupled with persistent weather disruptions has somewhat kept a lid on tightness in the port.

Recommended lead times for VLSFO and LSMGO in Zhoushan stand at 3-5 days – unchanged from last week. HSFO lead times also remain virtually unchanged at 4-7 days – but still longer than the other grades.

However, bunker operations across all anchorages in Zhoushan have been suspended since Sunday due to bad weather conditions, a source says. Bunker deliveries are likely to resume fully on 4 June, when calmer weather is forecast.

In Hong Kong, availability is tight for VLSFO and HSFO due to a spike in demand and tight barge availability, a source says. Both grades now require lead times of 7-10 days – up from last week’s 4-7 days.

LSMGO availability has improved in the port, with lead times of 3-5 days – down from last week’s 4-7 days.

Bunker demand in South Korean ports was modest at the start of this week, but it has since picked up, a source says. Recommended lead times for all grades in southern and western ports stand at 3-5 days – unchanged from last week.

But intermittent bad weather is forecasted between 31 May-4 June, which could disrupt bunkering in the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean and Yeosu.

Adverse weather conditions are also anticipated to disrupt bunker deliveries in the Thai ports of Koh Sichang and Leam Chabang and the Kiwi port of Tauranga between 1-2 June.

Bad weather forecast at the Vietnamese port of Ho Chi Minh on 1 June, which might hamper bunkering.

 

South Asia

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

But both grades remain subject to availability in Mumbai and Tuticorin. Meanwhile, supply is subject to enquiry in Haldia.

Rough weather conditions are anticipated to disrupt bunker deliveries in India’s west coast ports of Sikka and Kandla between 31 May-3 June, and in the southwestern port of Visakhapatnam on 1 June.

Adverse weather conditions are also forecasted in the Sri Lankan port of Colombo on 3 June and 6 June, which could impact bunkering operations. Prompt supply for all grades is available with a supplier in Colombo.

 

Middle East

All bunker fuel grades are in tight availability in Fujairah amid good demand, a source says. Lead times of 5-7 days are recommended across all three grades in the port. VLSFO and HSFO will need around 3-6 days of lead time.

Some suppliers can offer prompt stems for all grades, but depends on the stem size, the source adds.

In the UAE port of Khor Fakkan, lead times across all grades remain unchanged on the week at 5-7 days.

LSMGO is readily available in the Omani ports of Muscat, Salalah, Sohar and Duqm, with short lead times of 2-3 days.

By Tuhin Roy

 

Photo credit and source: ENGINE
Published: 31 May, 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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