ENGINE: East of Suez Bunker Fuel Availability Outlook
A source says that “demand started slow” in Singapore this week but “then picked up.” Availability remains tight for VLSFO and HSFO in the port, with lead times of 8-9 days and 6-10 days recommended, respectively. This is slightly down from 8-12 days last week.
Lead times for LSMGO have also increased marginally from 4-6 days last week to 5-7 days now.
Singapore’s residual fuel oil stocks have averaged 16% lower so far in May than across April, according to Enterprise Singapore. The port’s residual fuel oil stocks have slumped to their lowest average level since last August, partly due to less fuel oil imports this month. Singapore’s fuel oil imports have declined by a significant 19% so far this month and are at their lowest level in a year.
The port’s middle distillate stocks have fallen by 11% so far this month and have not been drawn further down since last December.
Availability of VLSFO has improved in Zhoushan, with lead times shortening from 5-7 days last week to 3-5 days this week. LSMGO stems also require 3-5 days – virtually unchanged from last week. But lead times for HSFO have increased slightly from 3-5 days last week to 4-7 days.
Bunker deliveries have resumed at Zhoushan’s Tiaozhoumen and Xiazhimen anchorages this morning after being halted by bad weather since Sunday, a source says. But strong wind gusts of 23-31 knots are forecast between 26-28 May, which could disrupt operations again. The Chinese bunkering hub has been grappling with weather disruptions for quite some time now, which has slowed down bunkering there, a source says.
Prompt availability across all grades is tight in Hong Kong, as barge availability has come under pressure from high demand, a source says. Recommended lead times for VLSFO and LSMGO grades are 4-7 days, while lead times for HSFO are around seven days.
VLSFO availability has gotten very tight in South Korean ports, with lead times stretching to two weeks out. But one supplier can offer the grade at shorter lead times of around four days, a source says.
Meanwhile, availability of LSMGO and HSFO is normal in South Korean ports, with lead times of 4-5 days recommended.
Bad weather is forecast in the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean and Yeosu between 26-28 May, which could hamper operations.
Adverse weather conditions are also anticipated to disrupt bunker deliveries in the Philippine port of Subic Bay and the Vietnamese port of Ho Chi Minh on 30 May, and the Kiwi port of Tauranga between 28-29 May.
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 on the southern coast.
Availability of both grades is also good in Visakhapatnam on the southwestern coast and Chennai on the southern coast, with lead times of around five days advised.
Meanwhile, VLSFO and LSMGO remain subject to availability in Mumbai, Tuticorin and Haldia.
Rough weather between 24-25 May is expected to disrupt bunkering operations in India’s west coast ports of Sikka and Kandla and in the southwestern port of Visakhapatnam.
All bunker fuel grades are readily available in Fujairah amid “really low” demand, says a source. While VLSFO and HSFO will need lead times of some three days and six days, respectively, prompt dates are available for LSMGO.
Lead times of 5-7 days are recommended across all grades in the UAE port of Khor Fakkan.
Source: ENGINE, By Tuhin Roy, https://engine.online/news