ENGINE: East of Suez Bunker Fuel Availability Outlook
Availability across all fuel grades remains tight in Singapore. Recommended lead times for VLSFO in the port are 9-11 days, while 7-10 days are required for HSFO.
The port’s residual fuel oil inventories have averaged 4% lower so far in November compared to October, despite a big increase in net imports, according to Enterprise Singapore.
HSFO cargoes have primarily arrived from Turkey so far this month, followed by Russia and Malaysia, going by Vortexa cargo tracking data.
Some suppliers have held back offers for HSFO in Singapore, which has contributed to keep its price elevated, a source says. Lead times of 7-10 days are recommended for HSFO in the port.
Bunkering operations in Zhoushan’s outer port limits (OPL) might be suspended by bad weather from the evening of 22 November, according to White Whale Shipping Agency. Strong winds ranging between 19-27 knots are forecast to hit the port. OPL bunkering is likely to resume on 23 November’s evening, when calmer weather is forecast.
Availability of VLSFO remains steady in Zhoushan, with recommended lead times of five days. Lead times of seven days are required for HSFO in the port.
LSMGO remains extremely tight in Zhoushan as several suppliers have almost run out of stocks. Replenishment cargoes are due to arrive in the end of November, which is likely to alleviate the situation, a source says. Lead times for the grade are subject to enquiry currently.
Meanwhile, availability across all grades remains steady in South Korean ports, with recommended lead times of five days. Bunkering might be hampered by rough weather in southern South Korean ports including Busan and Yeosu between 23-24 November. Delivery of stems are subject to weather conditions currently, a source says.
Availability of prompt dates across all grades in Hong Kong remains tight, with lead times of 7-8 days. One supplier can accommodate shorter lead times for VLSFO, a source says.
In Indonesia, the effects of a 5.6-magnitude earthquake that hit the Cianjur region on Monday have mostly been felt in the western parts of Java, while suppliers continue to deliver stems in the ports of Jakarta, Surabaya and Balikpapan, a trader says.
Several Indian ports, including Mumbai, Mundra and Kandla on the northwest coast, and Cochin and Chennai on the southern coast, have good availability of VLSFO with lead times of 2-3 days.
Meanwhile, VLSFO availability is subject to inquiry in Tuticorin.
Visakhapatnam and Haldia on India’s east coast have recommended lead times of 2-3 days for VLSFO. Suppliers in Paradip have almost run out of VLSFO.
One supplier can provide prompt dates for all the grades in the Sri Lankan port of Colombo.
Fujairah’s suppliers have been grappling with low demand for VLSFO since the beginning of October. Less VLSFO sales contributed to pull down Fujairah’s total bunker sales by 2% in October, according to data compiled by Fujairah Oil Industry Zone (FOIZ) and S&P Global Commodity Insights.
Sources attributed lower demand to a lack of movement in bulk and container vessels.
VLSFO stems can be delivered in Fujairah in five days, while recommended lead times for LSMGO and HSFO are four days.
Very prompt deliveries (0-3 days) of VLSFO are available in the Omani port of Sohar. Prompt LSMGO is also available in Duqm and Sohar, and typically requires lead times of 2-3 days.
Source: ENGINE, By Tuhin Roy, (https://engine.online/)