VLSFO and LSMGO supply good across several Chinese ports

Several East Asian ports could face weather disruptions

LSMGO availability good in Omani ports

PHOTO: A beautiful sunset over the port of Djibouti on the Red Sea. Getty Images

Singapore and Malaysia

Despite usual bunker demand, VLSFO availability in Singapore remains constrained as some suppliers face low stock levels and terminal loading delays. The tight supply situation is expected to persist through the first half of September, according to a source. Several suppliers now recommend lead times of 9-14 days, though some can deliver with shorter lead times at higher prices.

HSFO supply is also under pressure, with recommended lead times extending up to two weeks. In contrast, LSMGO availability is relatively better, with lead times of 3-6 days.

Singapore’s residual fuel oil stocks averaged 3% lower in August compared to July, according to Enterprise Singapore. The port’s fuel oil stocks fell below 19 million barrels, driven by a significant 37% decline in net fuel oil imports during August. Fuel oil imports dropped by 581,000 barrels, while exports surged by 863,000 barrels, contributing to the reduction in stocks.

Meanwhile, the port’s middle distillate stocks increased and averaged 10% higher than in July.

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.

East Asia

Prompt availability of all grades has tightened in Zhoushan, despite low bunker demand. Most suppliers are now recommending lead times of 5-7 days across all grades.

In Northern China, the ports of Dalian, Qingdao and Tianjin have ample VLSFO and LSMGO supplies, although HSFO availability is limited in Qingdao and Tianjin. Shanghai also has strong VLSFO and LSMGO availability, but HSFO supply is subject to enquiry. Fuzhou and Xiamen have good supplies of VLSFO and LSMGO, while both the grades are under pressure for prompt deliveries in Guangzhou and Yangpu.

Lead times of approximately seven days are recommended for all grades in Hong Kong, nearly unchanged from last week.

Strong wind gusts of 24-43 knots and swells up to four meters are expected to hit Hong Kong between 5-6 September, potentially affecting bunker deliveries in the port.

VLSFO and LSMGO supplies in the Taiwanese ports of Hualien, Kaohsiung, Taichung and Keelung remain stable, with prompt lead times of about two days, similar to the previous week.

In southern South Korean ports, VLSFO and LSMGO availability remains tight, with many suppliers recommending lead times of up to 11 days, though some can accommodate stems in as little as three days. HSFO availability, on the other hand, has improved in these ports. Lead times for HSFO have reduced from around 11 days last week to 4-6 days now.

In western South Korean ports, VLSFO and LSMGO now require lead times of 6-10 days, up from about seven days last week, while HSFO lead times have shortened to 3-5 days.

Additionally, high winds and waves are forecast to hit the ports of Ulsan, Onsan, and Yeosu between 6-8 September, and Busan between 7-8 September, which could impact bunker operations at these locations.

In Japan, LSMGO supply remains strong across major 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 availability is good in most Japanese ports, but supply is tight in Oita.

Bunker deliveries in the Tokyo Bay region have resumed after being temporarily halted by Typhoon Shanshan yesterday. All ports in the area, including Tokyo, Yokohama, Kawasaki and Chiba are now fully operational.

The ports of Ho Chi Minh and Hai Phong in Vietnam and Koh Sichang and Leam Chabang in Thailand are bracing for inclement weather this week, which could cause intermittent disruptions in bunkering. The Philippine port of Subic Bay is also forecast to experience adverse weather conditions during 4-6 September, potentially affecting bunker operations.

Oceania

Western Australian ports of Kwinana, Fremantle and Kembla are well-supplied with VLSFO and LSMGO, with recommended lead times of approximately seven days. In New South Wales, Sydney has sufficient LSMGO stocks, but HSFO availability may require advance inquiries.

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

New Zealand's Tauranga and Auckland have a decent supply of VLSFO, with Auckland also providing a good supply of LSMGO. Rough weather is expected in Tauranga between 6-8 September, which could potentially impact bunker operations.

South Asia

In Indian ports such as Mumbai, Kandla, Tuticorin, Cochin and Chennai, VLSFO and LSMGO supplies remain limited. In Visakhapatnam, both grades are available only sporadically, and a supplier in Paradip and Haldia is nearly out of stocks for both grades.

In the Sri Lankan port of Colombo, the availability of all grades has tightened, with lead times increasing from about four days last week, to eight days now.

Middle East

In Fujairah, availability has tightened across all grades, with most suppliers now recommending lead times of 7-10 days, up from last week's 5-7 days. Despite this, some suppliers can still accommodate prompt stems. Bunker demand in Fujairah has remained relatively low in recent weeks, a source says.

Khor Fakkan is experiencing similar conditions, with suggested lead times of 7-10 days. Meanwhile, Jeddah port in Saudi Arabia has ample supplies of both VLSFO and LSMGO grades. Djibouti is facing VLSFO shortages, although LSMGO is more readily available.

Omani ports of Sohar, Salalah, Muscat, and Duqm have good LSMGO availability with prompt dates available.

By Tuhin Roy

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