Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

VLSFO supply improves in Singapore; several South Korean ports face possible weather disruptions; demand good in Fujairah.

Published

3 months ago

July 5, 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:

4 July 2023

VLSFO supply improves in Singapore
Several South Korean ports face possible weather disruptions
Demand good in Fujairah

Singapore

Overall demand has been “slow” in Singapore so far this week, however, buying interest for HSFO grade remains strong, a source says. Stronger demand for the grade has contributed to keep HSFO supply tight in the port. Lead times remain almost unchanged from last week at 10-12 days.

Meanwhile, VLSFO availability has improved in the East Asian bunker hub, with lead times dropping from 9-12 days last week to 6-8 days now. LSMGO also remains readily available, with short lead times of 3-5 days advised, down from 5-7 days last week.

Singapore’s residual fuel oil stocks averaged 4% higher in June than in May, according to Enterprise Singapore. Singapore’s net fuel imports swelled massively by 51% to their highest level since last June. While the port’s fuel imports surged by 24%, the fuel oil exports slumped by 19% and to their lowest level since last October.

The port’s middle distillate stocks also averaged 6% higher in June than in May.

East Asia and Oceania

Sluggish demand and weather-related disruptions have kept a lid on tightness across all grades in Zhoushan, a source says.

Bunker availability is good across all grades in Zhoushan. Some suppliers, that were unable to supply large prompt VLSFO stems last week, can now supply the grade with a short lead time of 2-5 days.

LSMGO and HSFO demand also remains good, with prompt supply available in the port.

Bunkering resumed at Zhoushan’s OPL area on Tuesday evening after remaining suspended by bad weather conditions since Sunday. All four anchorages in the Chinese bunkering hub were operational on Tuesday.

Demand for VLSFO has been robust in Hong Kong, a source says. Buying interest for LSMGO of small stem sizes has been good so far this week, while HSFO demand is slow. Lead times of around seven days are recommended in the port – slightly down from 7-10 days last week.

Meanwhile, VLSFO availability has tightened in South Korean ports, with delivery dates mostly subject to enquiry now. Last week, some suppliers were offering the grade at lead times of 3-6 days.

Prompt availability for HSFO and LSMGO has also tightened across South Korean ports, with lead times varying between 4-11 days. Both grades were offered with lead times of 2-4 days and about six days across southern and western South Korean ports, respectively, last week.

The South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean and Yeosu are forecast to experience adverse weather conditions intermittently between 5-9 July, which might disrupt bunker operations.

Bad weather conditions are also predicted intermittently between 6-11 July in the Vietnamese port of Hai Phong, and 4-10 July in the Kiwi port of Tauranga.

South Asia

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

Meanwhile, both grades remain subject to availability in Mumbai, Visakhapatnam and Paradip as it has been in recent weeks. On the other hand, supply in Tuticorin port on the southeast coast and Haldia on the east coast remains subject to enquiry.

Rough weather is forecast at Kandla on Wednesday and Thursday, which could impact bunker deliveries.

Strong wind gusts of 21-29 knots and waves of more than two metres are forecast to hit the Sri Lankan port of Colombo on Wednesday, which may disrupt bunker operations.

Middle East

All grades remain in tight availability in Fujairah amid good demand. Lead times of 5-7 days are advised across all bunker fuel grades in the port – virtually unchanged from last week. But some suppliers can offer all bunker fuel grades for prompt delivery dates, but these deliveries depend on stem sizes, a source says.

Availability of all bunker fuel grades remains good in the UAE port of Khor Fakkan, with unchanged lead times of 5-7 days from last week.

LSMGO is readily available across the Omani ports of Muscat, Salalah, Sohar and Duqm.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 5 July, 2023

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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

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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
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“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