Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

VLSFO and HSFO availability tight in Zhoushan; several East Asian ports could face weather disruptions; availability across all grades good in Colombo.

Published

3 months ago

June 28, 2023

Admin

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:

27 June 2023

VLSFO and HSFO availability tight in Zhoushan
Several East Asian ports could face weather disruptions
Availability across all grades good in Colombo

Singapore

A source says that Singapore has been witnessing “decent” demand so far this week. VLSFO and HSFO availability remains tight in the port as it has been in recent weeks. Lead times for VLSFO and HSFO are about 9-12 days – almost unchanged from last week.

Some suppliers, who were offering LSMGO at prompt dates last week, are now offering the grade with lead times of 5-7 days.

Singapore's fuel oil inventories have grown by 4% over May levels, according to Enterprise Singapore.

The port’s net fuel oil imports have surged by 45% and are at their highest level since June last year, partly due to more fuel oil imports this month. The port’s fuel oil imports have risen by 22% so far this month and are at an 11-month high. Fuel oil exports, on the other hand, have declined by 16%. This has increased the port's net import surplus.

Meanwhile, Singapore’s middle distillate stocks have grown by 7% over May's average.

East Asia and Oceania

Prompt availability of large VLSFO stems has tightened in Zhoushan owing to delays in custom formalities, but small stems can still be secured with a shorter lead time of 3-5 days, a source says.

LSMGO and HSFO availability remains good in the Chinese bunkering hub, with most suppliers recommending lead times of 2-5 days.

Bunker operations have resumed at Zhoushan’s OPL this morning after being suspended by rough weather since Saturday, a source says. However, strong wind gusts of 23-29 knots and waves of close to a metre are forecast on Tuesday evening, which might hamper bunker deliveries again.

Demand has been normal in Hong Kong so far this week, a source says. Lead times across all bunker fuel grades remain unchanged at 7-10 days.

Meanwhile, VLSFO availability has improved in South Korea. Lead times of around six days are recommended for the grade in western South Korean ports, while around three days are advised for the country's southern ports. The grade was subject to enquiry last week.

Availability of LSMGO and HSFO has also improved in southern South Korean ports, with lead times coming down from 4-7 days last week to around two days and four days, respectively. On the other hand, lead times for both grades are around six days in western South Korean ports – almost unchanged from last week.

Bad weather conditions are also forecast intermittently between today and 2 July in the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean and Yeosu, which may disrupt bunker operations.

The Thai ports of Koh Sichang and Leam Chabang are predicted to experience adverse weather conditions between 3-4 July, the Vietnamese port of Ho Chi Minh on 1 July and Hai Phong between 2-3 July, and the Kiwi port of Tauranga between 28 June-3 July, which could hamper bunkering operations.

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, Tuticorin and Paradip. Meanwhile, supply is subject to enquiry in Tuticorin port on the southeast coast and Haldia on the east coast.

Rough weather is forecast in the Indian west coast ports of Kandla and Sikka on 30 June, which could affect bunkering.

The Sri Lankan port of Colombo has good availability across all bunker fuel grades.

Middle East

Prompt availability of all bunker fuel grades remains tight in Fujairah, as several suppliers are working through backlogs due to recent weather-related delays. Recommended lead times remain unchanged at 5-7 days in the port. But some suppliers can offer all grades at prompt dates depending on stem sizes, a source says.

Lead times of 5-7 days are advised across all grades in the other UAE port of Khor Fakkan – virtually unchanged from last week.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 28 June, 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