ENGINE: East of Suez Bunker Fuel Availability Outlook

Singapore and Malaysia

Despite normal bunker demand, prompt VLSFO availability in Singapore remains tight as some suppliers struggle with low stock levels and terminal loading delays. Several suppliers now recommend lead times of nearly two weeks for the grade. Some can accommodate stems with shorter lead times of around eight days, though these are typically priced higher, according to a source.

HSFO supply is also strained, with lead times extending beyond two weeks. In contrast, LSMGO availability is relatively better, with lead times ranging from 2-8 days.

Singapore’s residual fuel oil stocks have averaged 7% lower so far this month compared to August, according to the latest data from Enterprise Singapore. Despite a 30% rise in Singapore’s net fuel oil imports this month, stocks have fallen below 18 million bbls, the lowest level since November 2018. Both imports and exports of fuel oil have dropped, with imports down by 391,000 bbls and exports down by a massive 1.13 million bbls. The port’s middle distillate stocks have also declined, averaging 8% lower this month.

In Malaysia’s Port Klang, VLSFO and LSMGO supplies are strong, with some suppliers able to offer prompt deliveries for smaller quantities. However, HSFO availability remains limited in the port.

East Asia

VLSFO and HSFO availability in Zhoushan has become tighter, with several suppliers recommending lead times of 7-10 days due to low stock levels. In contrast, LSMGO is more readily available, with shorter lead times of 3-5 days. Bunkering activity in Zhoushan remains subdued due to the Golden Week holidays in the country.

In Northern China, the ports of Dalian and Qingdao have ample VLSFO and LSMGO supplies, though HSFO is limited in Qingdao. All three fuel grades remain in short supply in Tianjin. Shanghai has strong LSMGO availability, but VLSFO and HSFO are scarce. Fuzhou has good supplies of both VLSFO and LSMGO, while Guangzhou and Yangpu face restrictions on the prompt availability of both grades. In Xiamen, VLSFO availability is good, but LSMGO is tight.

In Hong Kong, lead times of around seven days are recommended for all fuel grades, almost unchanged from last week. Weather forecasts predict intermittent wind gusts of 19-31 knots and swells exceeding one metre from 1-5 October, which could affect bunker deliveries at the port.

Meanwhile, bunker deliveries across Taiwanese ports, including Kaohsiung, Hualien, Suao, and Mailiao, were suspended Tuesday morning due to the effects of Typhoon Krathon, according to a source.

Taiwan’s Central Weather Administration (CWA) reported that the typhoon is expected to make landfall near Kaohsiung early Wednesday afternoon. Bunker operations at Taichung and Keelung ports are also expected to be suspended by Tuesday evening.

Lead times for VLSFO and LSMGO at Hualien, Kaohsiung, Taichung, and Keelung have increased from 2-3 days last week to around 3-5 days.

In southern South Korean ports, VLSFO and LSMGO supplies remain stable, with lead times of 5-9 days recommended by several suppliers. However, HSFO availability is tight, with lead times of more than 15 days recommended.

In western South Korean ports, lead times for VLSFO and LSMGO have increased to 9-15 days, up from 7-11 days last week. HSFO now also requires lead times of 9-15 days, a significant jump from around four days last week.

Additionally, rough weather is forecast to intermittently impact bunker operations at the ports of Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu throughout this week. A source reported that bad weather has been disrupting barge deliveries in several South Korean ports since yesterday.

In Japan, LSMGO supply remains strong at key ports, including Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya, Yokkaichi, Mizushima, and Oita. HSFO availability is generally good, though prompt supply is limited in Oita. VLSFO is available at most ports, but prompt supply is tight in Nagoya, Yokkaichi, and Oita.

Although HSFO availability is currently stable in Tokyo Bay, it is expected to tighten soon due to technical issues at refineries. One refinery has halted HSFO production until 10 October, and two others are experiencing cargo loading delays, according to a source.

The Japan Meteorological Agency forecasts that Typhoon Krathon will approach the southwestern Okinawa Prefecture in the coming days. Severe Tropical Storm Jebi was tracking northward across the North Pacific on Tuesday, approaching the Kanto region, including Tokyo. These storms may disrupt bunker operations at Japanese ports.

Oceania

A bunker barge serving Fremantle and Kwinana ports is in dry dock until mid-November, leaving VLSFO unavailable by barge during this time. However, LSMGO can still be supplied at berth. The Western Australian port of Kembla remains unaffected, as bunker deliveries are made exclusively by truck and ex-pipe.

Adverse weather is forecast in Fremantle between 2-3 October, and the port authority has issued a notice outlining the necessary precautions for vessels operating in the Port of Fremantle to protect port infrastructure and vessels.

In Victoria, Melbourne and Geelong have ample VLSFO and LSMGO supplies, though securing prompt HSFO deliveries may be difficult. In Queensland, Brisbane and Gladstone ports have sufficient VLSFO and LSMGO with lead times of 7-8 days, but HSFO availability is limited in Brisbane.

In New Zealand, Tauranga and Auckland have a good supply of VLSFO, with Auckland also having strong LSMGO availability. However, intermittent rough weather in Tauranga this week may affect bunker operations.

South Asia

In the Indian ports of Mumbai, Kandla, Tuticorin, Cochin, and Chennai, VLSFO and LSMGO supplies remain limited. Both grades are available in Visakhapatnam, while a supplier in Paradip and Haldia is nearly out of both.

In contrast, Sri Lanka’s ports of Colombo and Hambantota have ample supplies of all grades, with prompt deliveries also possible.

Middle East

Availability of all grades remains tight in Fujairah, with most suppliers recommending lead times of 7-10 days, similar to last week. But some suppliers can still offer grades for prompt deliveries, according to a source. A similar situation exists in Khor Fakkan, where lead times of 7-10 days are advised for all grades.

In Saudi Arabia’s Jeddah port, VLSFO and LSMGO are in abundant supply. VLSFO supply is limited in nearby Djibouti, while LSMGO is more readily available.

Omani ports, including Sohar, Salalah, Muscat, and Duqm, have ample LSMGO supplies with prompt delivery options.
Source: ENGINE, By Tuhin Roy, https://engine.online/news