ENGINE: East of Suez Bunker Fuel Availability Outlook
• HSFO tight in Fujairah and Singapore
• Singapore-flagged ships incentivised to use low carbon fuels
• Strong demand tightens supply of all grades in Hong Kong
HSFO380 remains “super tight” in Singapore with recommended lead times of 20-21 days. VLSFO is also tight with around 11-13 days of lead time recommended, while LSMGO is more readily available with 5-6 days of recommended lead time.
HSFO380 availability is expected to remain tight in Singapore as some suppliers are hesitant to offer after a major organic chloride contamination incident. Buyers are requesting more elaborate fuel screening to detect chlorides, sources say.
Singapore’s HSFO380 delivered price premium over ex-wharf has widened substantially from last month, likely driven by contamination concerns and tighter availability, a source said.
Meanwhile, the port’s residual fuel oil stocks swelled to five-week highs last week, and its middle distillate stocks to five-month highs, according to Enterprise Singapore.
According to forward-looking cargo tracking data from Vortexa, Singapore is set to increase its share of HSFO imports from Venezuela, Bahrain, Mexico, Russia and South Korea in the last week of April and through May, compared to the year to date.
The Maritime Port Authority of Singapore (MPA) announced that under its Green Ship Programme it will offer discounted registration fees and tax rebates to Singapore-flagged ships that have lower emissions and use cleaner fuels from next month.
Bunker demand in Hong Kong remains robust, sources say. VLSFO and LSMGO supply has tightened some, mainly because of busy barge schedules which make lead times more unpredictable.
HSFO380 continues to be tight in Hong Kong as the grade is available with only some suppliers. Demand for the grade has spiked in the past weeks as Singapore struggles with contamination issues.
Availability is slightly tight in South Korean ports. Recommended lead times for VLSFO and LSMGO grades are 5-7 days, sources say. Demand remains roughly steady.
Bunker operations were suspended by bad weather in Zhoushan on Monday and Tuesday, sources say. Some suppliers can offer limited prompt volumes of VLSFO and LSMGO, while HSFO380 supply is tighter.
A supplier in Port Klang can offer limited volumes of VLSFO and LSMGO for prompt deliveries, sources say.
In Colombo, prompt availability of VLSFO and LSMGO are more difficult to find now due to tight barge schedules, sources say. HSFO380 is tight with little volume to sell.
Bunker fuel availability remains normal at India’s Mumbai port. Some suppliers can offer prompt deliveries for VLSFO and LSMGO, sources say. In Mundra, HSFO380 and VLSFO availability is normal and recommended lead times are around 6-7 days, while LSMGO is said to be unavailable, sources say.
Availability in Visakhapatnam is normal for VLSFO and LSMGO, a supplier can offer prompt deliveries.
In Chittagong, availability is tight for VLSFO and LSMGO. A supplier can offer limited deliveries for VLSFO.
HSFO380 remains “super tight” in Fujairah with recommended lead times of 12 days. A shorter 6-7 days is recommended for LSMGO and five days for VLSFO.
With strong bunker demand in Fujairah, suppliers have generally been keener to offer VLSFO and LSMGO stems above certain quantities, a source said.
Availability of VLSFO and LSMGO remains normal in the Omani ports of Duqm and Sohar, sources say.
In Port of Suez, availability is tight across all grades, sources say.
Source: ENGINE (https://engine.online/)