Prompt VLSFO and HSFO availability improves in Singapore

Bunker demand low in South Korean ports

VLSFO and HSFO availability good in several Australian ports

PHOTO: An aerial view of Melbourne central business district, Victoria, Australia. Getty Images

Singapore and Southeast Asia

In Singapore, lead times for VLSFO have improved this week amid “average” bunker demand. Most suppliers are recommending lead times of around 4-8 days – down significantly from up to 14 days last week.

Prompt availability of HSFO has also improved in the port. Several suppliers are advising up to 12 days of lead times, but some can deliver stems in just three days. This is slightly shorter than last week when a minimum of seven days was needed for VLSFO in the port. LSMGO supply remains stable, with recommended lead times of 2-8 days – virtually unchanged from last week.

Residual fuel oil stocks in Singapore dipped 2% in March compared to February, according to data from Enterprise Singapore. The port saw a 4% decrease in net fuel oil imports in March, with both imports and exports down. Fuel oil imports dropped by 279,000 bbls, exceeding the 108,000-bbl decline in exports, contributing to lower stock levels. On the other hand, middle distillate stocks at the port surged 16% to multi-month highs of 10.31 million bbls.

In Malaysia, VLSFO and LSMGO supply is abundant in Port Klang, with most suppliers offering prompt dates. However, HSFO supply remains under pressure due to limited product availability.

China, East Asia and Oceania

Prompt availability of all bunker fuel grades remains good in China’s Zhoushan, with recommended lead times of 2-5 days – largely unchanged from last week.

In north China, Dalian has ample supply of VLSFO and LSMGO. Qingdao and Tianjin also boast abundant availability of VLSFO and LSMGO, but HSFO is limited in both ports. In the southern port of Shanghai, availability of VLSFO and LSMGO has improved, while HSFO is still under pressure. In Fuzhou, Yangpu, and Xiamen, both VLSFO and LSMGO are readily available. However, in Guangzhou, supply of low-sulphur fuel grades is limited.

Prompt supply of VLSFO and LSMGO is readily available in the Taiwanese ports of Hualien, Kaohsiung, Taichung and Keelung.

In Hong Kong, all fuel grades are readily available, with recommended lead times of about seven days. Some suppliers can offer early deliveries for smaller stems, a source says.

Despite low bunker demand in South Korean ports, availability of VLSFO and HSFO has tightened. Lead times for VLSFO and HSFO vary widely between 2-9 days and 4-7 days, respectively – up from around four days last week. LSMGO availability is good, with prompt dates available.

However, rough weather is forecast throughout this week in ports such as Ulsan, Onsan, and Busan, and over the weekend in Yeosu. This could potentially affect bunkering operations at these ports.

In Japan, availability of all bunker fuel grades is currently tight. Japanese refineries have been prioritizing domestic power demand, leading to reduced availability of fuel for bunkering purposes, according to a trader. Lead times vary across different ports ranging from 9-12 days in Tokyo, Chiba, Osaka, and Kobe, approximately 15 days in Nagoya and Yokkaichi, and even longer periods of 17-19 days in Mizushima and Oita.

In Western Australia, both Kwinana and Fremantle ports boast ample supplies of VLSFO and LSMGO, with recommended lead times of 7-8 days. Moving to New South Wales, Sydney has prompt availability of LSMGO, but HSFO supply is limited there. Melbourne enjoys abundant supply of VLSFO and LSMGO. Geelong also has good VLSFO availability. However, HSFO supply is under pressure in both Melbourne and Geelong. In Queensland, ports of Brisbane and Gladstone offer good supplies of VLSFO and LSMGO, with recommended lead times of 7-8 days, but HSFO availability remains limited in Brisbane.

Tropical Cyclone Olga, positioned north of the Port of Hedland in Western Australia's Pilbara region, is expected to move southwest, according to Australia's Bureau of Meteorology. While the cyclone is forecast to stay off the Pilbara coast, precautionary measures have been taken, with clearance issued for ports of Walcott and Barrow Island, and alerts in place for ports such as Onslow and Cape Preston. The weather condition is being monitored in the port of Carnarvon, as reported by GAC Hot Port News.

Adverse weather conditions are also anticipated in Koh Sichang (Thailand) on 15 April, Ho Chi Minh (Vietnam) during 9-13 April, and intermittently in Tauranga (New Zealand) between 10-13 April, which could complicate bunker deliveries.

South Asia

VLSFO and LSMGO availability remains tight in Indian ports, with most suppliers running low on stocks. The situation has worsened by periods of high demand linked to the Red Sea crisis, according to a source.

Ports including Mumbai, Kandla, Tuticorin, Chennai, Cochin, Visakhapatnam, Haldia, and Paradip are experiencing pressure on VLSFO and LSMGO supplies, and delivery schedules are subject to availability.

Sikka and Kandla ports in India are forecast to experience adverse weather conditions on 13 April, which could disrupt bunkering.

Middle East

Several shipowners and operators continue to avoid the Red Sea route due to ongoing attacks by Houthi militants. The attacks have prompted them to take the longer route around the Cape of Good Hope. This change in shipping routes has decreased bunker demand in Fujairah.

Prompt availability of all fuel grades remains under pressure in Fujairah despite subdued demand, with several suppliers recommending unchanged lead times of 7-10 days. Suppliers can provide stems in the UAE port of Khor Fakkan within 7-10 days.

In Saudi Arabia's Jeddah port, both VLSFO and LSMGO are readily available. However, in the neighboring port of Djibouti, certain suppliers are encountering a shortage of VLSFO, though LSMGO supply remains stable.

In Omani ports of Sohar, Salalah, Muscat, and Duqm, there is ample availability of LSMGO.

By Tuhin Roy

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