VLSFO and LSMGO availability good across several Chinese ports

Several Japanese ports brace for Typhoon Shanshan impact

Prompt availability is tight in Fujairah

PHOTO: Mountain Fuji and the Keihin Industrial Zone near the Tokyo-Yokohama area, Japan. Getty Images



Singapore and Malaysia

VLSFO availability in Singapore has become more constrained, with several suppliers now recommending lead times of up to two weeks. Some suppliers can accommodate stems in as little as six days, but these stems are usually priced higher, a source said.

HSFO supply is also under pressure, with lead times advised at 11-14 days. Lead times for LSMGO vary considerably, ranging from 5-10 days.

Singapore’s residual fuel oil stocks have averaged 2% lower so far this month compared to July, according to the latest data from Enterprise Singapore. The port’s fuel oil stocks have dropped below 20 million bbls, driven by a notable 36% decrease in net fuel oil imports this month. Fuel oil imports have fallen by 585,000 bbls, while fuel oil exports have increased by 822,000 bbls, contributing to the stock draw. In contrast, Singapore’s middle distillate stocks have averaged 12% higher than last month.

In Malaysia's Port Klang, VLSFO and LSMGO supplies are robust, with some suppliers offering prompt deliveries for smaller quantities, but HSFO availability remains limited.

East Asia

Suppliers in Zhoushan are recommending lead time of around 5-7 days for all grades, almost consistent with last week.

In Northern China, ports of Dalian, Qingdao, and Tianjin have ample VLSFO and LSMGO supplies, though HSFO is limited in Qingdao and Tianjin. Shanghai also has strong VLSFO and LSMGO availability, but HSFO is scarce. Fuzhou and Xiamen have good VLSFO and LSMGO supplies, while Guangzhou and Yangpu face some restrictions on prompt availability of both grades.

In the Taiwanese ports of Hualien, Kaohsiung, Taichung, and Keelung, VLSFO and LSMGO supplies remain stable, with prompt lead times of around 2-3 days, consistent with the previous week.

In Hong Kong, all types of bunker fuel are readily available, with lead times of around seven days from several suppliers, which is consistent with last week.

In southern South Korean ports, VLSFO and LSMGO availability has tightened, with lead times now at 7-11 days, up from 3-7 days last week. HSFO remains constrained with lead times around 11 days. In contrast, all fuel grades in western South Korean ports require slightly shorter lead times of about seven days.

Additionally, rough weather is expected to intermittently affect the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu throughout the week, which could impact bunker operations.

In Japan, LSMGO supply remains strong across major ports such as Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya, Yokkaichi, Mizushima, and Oita. While HSFO availability is generally good across most Japanese ports, prompt supply is limited in Oita.

Prompt VLSFO availability has improved in most ports but remains tight in Oita.

Additionally, bunker deliveries at several Japanese ports may be disrupted from Wednesday onwards due to Typhoon Shanshan. The typhoon was located about 130 km east of Amami City on Tuesday and was moving towards west-northwest. It is expected to affect bunker operations in Kitakyushu and Mizushima on Wednesday and Thursday, and in Osaka, Nagoya, and Tokyo on Friday and Saturday, a source says.

Adverse weather is forecasted for the Thai ports of Koh Sichang and Laem Chabang on August 29-30, and for the Vietnamese port of Ho Chi Minh on August 29-31, which may pose challenges for bunker deliveries.

Oceania

In Western Australia, VLSFO and LSMGO can be obtained in Kwinana, Fremantle, and Kembla with an approximate lead time of seven days. In New South Wales, Sydney offers sufficient LSMGO, although prompt availability of HSFO may be subject to firm inquiries.

Victoria boasts ample VLSFO and LSMGO stocks in Melbourne and Geelong, but prompt HSFO deliveries might be challenging. Queensland's Brisbane and Gladstone ports have adequate VLSFO and LSMGO supplies, with lead times of around 7-8 days. However, HSFO availability in Brisbane is limited.

In New Zealand, Tauranga and Auckland offer a decent supply of VLSFO, with Auckland also providing a good supply of LSMGO. Rough weather is expected in Tauranga throughout the week, potentially affecting bunker operations.

South Asia

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

Adverse weather is expected intermittently between Tuesday and Friday at Sikka, Kandla, and Mumbai ports, potentially affecting bunker operations.

Additionally, the All-India Port and Dock Workers’ Federation has announced an indefinite nationwide strike starting Wednesday at several major ports. Negotiations between the trade union and the India Ports Association are ongoing, and it is unclear if the strike will occur.

Some sources indicate that if the strike does happen, its impact on bunkering operations might be minimal.

In contrast, Sri Lanka’s ports of Colombo and Trincomalee have good availability of all grades, with lead times of about four days recommended in Colombo. The port of Hambantota has good LSMGO availability, but VLSFO supply remains tight.

Middle East

In the UAE port of Fujairah, prompt availability of all fuel grades is limited. Most suppliers require a lead time of 5-7 days, although some can still accommodate prompt stems. Overall, bunker demand in Fujairah has been relatively low.

The situation in Khor Fakkan, UAE, is similar, with suppliers advising lead times of 5-7 days.

In contrast, Jeddah port in Saudi Arabia has ample supplies of VLSFO and LSMGO.

Djibouti faces constraints in VLSFO supply, while LSMGO is more readily available.

Omani ports, including Sohar, Salalah, Muscat, and Duqm, offer a good supply of LSMGO.

By Tuhin Roy

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