Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

VLSFO and HSFO availability tight in Singapore; weak demand in Zhoushan; South Korean ports face possible weather disruptions.

Published

2 years ago

June 7, 2023

Admin

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:

6 June 2023

VLSFO and HSFO availability tight in Singapore
Weak demand in Zhoushan
South Korean ports face possible weather disruptions

Singapore

Demand has been average in Singapore so far this week. Securing VLSFO and HSFO stems in Singapore can be difficult. Lead times for VLSFO are 9-11 days – almost unchanged from last week, while lead times for HSFO have increased from last week's 8-11 days to 8-14 days now.

LSMGO availability, on the other hand, has improved with lead times shortening from last week's 6-8 days to 3-5 days.

Residual fuel oil stocks in Singapore averaged 19% lower in May than in April, data from Enterprise Singapore shows. The port’s net fuel imports plunged 24% lower in May, and to their lowest level since last August. Fuel oil imports and exports also fell by 20% and 14%, respectively, in May.

The port’s middle distillate stocks were also down, declining by 9% in May.

East Asia

Zhoushan continues to grapple with weak demand, a source says. Despite less bunkering, VLSFO supply has tightened in the Chinese bunkering hub as some suppliers are running low on stocks. Lead times for the grade have nearly doubled on the week, from 3-5 days to 5-7 days now.

HSFO lead times, on the other hand, have come down from last week's 4-7 days to 3-5 days. LSMGO lead times remain steady at 3-5 days.

In Hong Kong, VLSFO and HSFO supply has come under pressure amid tight barge availability, a source says. Recommended lead times for both grades remain unchanged on the week at 7-10 days.

LSMGO is more readily available in the port, with a shorter lead time of 3-5 days.

Wind gusts of 19-21 knots and swells of close to a meter are forecast to hit Hong Kong on 12 June, which could disrupt bunkering operations.

Bad weather is also anticipated to disrupt bunker deliveries in the South Korean ports of Ulsan and Onsan between 10-11 June, Busan and Yeosu between 9-11 June, and Daesan and Taean between 8-11 June.

Meanwhile, VLSFO availability remains tight in South Korean ports, with lead times stretching to almost two weeks. LSMGO availability has improved significantly in South Korea. Some suppliers, who were offering the LSMGO with lead times of 10-14 days last week, can now supply for prompt delivery dates. HSFO requires lead times of 3-5 days – similar to last week.

Adverse weather conditions are also forecast in the Philippine port of Subic Bay between 12-13 June, the Thai ports of Koh Sichang and Leam Chabang between 11-13 June, and the Kiwi port of Tauranga between Tuesday and Thursday, which might hamper bunker deliveries.

South Asia

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.

Availability of both grades is relatively tight in Mumbai, Visakhapatnam and Paradip and deliveries are subject to availability. Meanwhile, supply is subject to enquiry in Tuticorin port located on the southeast coast and Haldia on the east coast.

Bad weather is forecast between Wednesday and Saturday, which could disrupt bunkering in India's west coast ports of Sikka and Kandla.

Rough weather is also forecast at the Sri Lankan port of Colombo on Wednesday and could disrupt bunkering.

Middle East

Bunker fuel supply across all grades is said to be normal in Fujairah, with lead times ranging between 5-7 days for all grades – virtually unchanged from last week. Some suppliers can offer prompt stems of all grades, but their availability depends on the stem size, a source says.

The other UAE port of Khor Fakkan also has unchanged lead times of 5-7 days across all grades.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 7 June, 2023

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

Shandong Port Group bans US-sanctioned tankers from entering its ports

Group has prohibited ports to dock, unload or provide ship services to vessels on the Office of Foreign Control list managed by the US Department, according to a Reuters news report.

Published

3 days ago

January 10, 2025

Admin

Shandong Port Group bans US-sanctioned tankers from entering its ports

China’s Shandong Port Group has reportedly blocked tankers affected by US sanctions from entering its ports, according to an exclusive news report by Reuters on Wednesday (8 January).

Citing a notice from the port, which was issued on 6 January and shared to Reuters by traders, the Group has prohibited ports to dock, unload or provide ship services to vessels on the Office of Foreign Control list managed by the US Department.

In another notice released on 7 January, the ban came after sanctioned tanker Eliza II unloaded at Yantai Port in early January.

Shandong Port operates major ports on the east coast of China including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

The traders said the ban could slow imports into China, the world’s largest oil importing nation, and increase shipping costs.

Photo credit: Shandong Port Group
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