VLSFO and HSFO supply is tight in Singapore

VLSFO and LSMGO supply is good in several Chinese ports

Bunker demand is low in Fujairah

PHOTO: Industrial cargo ships in Busan port area, South Korea. Getty Images

Singapore and Malaysia

VLSFO availability in Singapore remains limited, with lead times stretching up to 13 days. While some suppliers can still accommodate stems within as little as four days, this usually comes at a higher price compared to stems with longer lead times.

HSFO supply is also under pressure, with recommended lead times now exceeding two weeks. In contrast, LSMGO availability is relatively better, with lead times ranging between 2-8 days.

According to data from Enterprise Singapore, residual fuel oil stocks in Singapore have averaged 4% lower this month compared to August. The port’s fuel oil stocks have now fallen for the third consecutive month, down from the peak of 22.49 million bbls recorded in January. Meanwhile, Singapore's middle distillate stocks have averaged 6% lower this month compared to August, though they have remained above 10 million bbls for the third month in a row.

At Malaysia's Port Klang, VLSFO and LSMGO supplies are strong, with some suppliers able to provide prompt deliveries for smaller quantities. However, HSFO availability continues to be limited.

East Asia

In Zhoushan, VLSFO and HSFO supplies have tightened, with several suppliers advising lead times of 7-10 days due to low stock levels. In contrast, LSMGO remains abundant, with shorter lead times of 3-5 days.

Bunker operations at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages resumed on Tuesday after a five-day suspension caused by Typhoon Pulasan-related bad weather, according to a source. All anchorages in the Chinese bunkering hub were fully operational on Tuesday.

In Northern China, the 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 in short supply. Fuzhou maintains good supplies of both VLSFO and LSMGO, while prompt deliveries for these fuels are under pressure in Guangzhou and Yangpu. In Xiamen, VLSFO availability is solid, while LSMGO availability is subject to enquiry.

In Hong Kong, lead times of approximately seven days are advised for all fuel grades, almost unchanged from last week.

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

In southern South Korean ports, VLSFO and LSMGO availability remains strong, with several suppliers recommending lead times of about three days. However, HSFO availability has tightened significantly, with lead times increasing from approximately 2-5 days last week to 15-22 days now.

In western South Korean ports, lead times for VLSFO and LSMGO have risen to 7-11 days, up from around 2-5 days last week, while HSFO now requires shorter lead times of four 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 at the major ports of Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya, Yokkaichi, Mizushima, and Oita. HSFO availability is generally good, although prompt supply is limited in Oita. VLSFO is available at most Japanese ports, but prompt supply is tight in Nagoya, Yokkaichi, and Oita.

Oceania

A bunker barge serving Fremantle and Kwinana ports is currently in dry dock until mid-November, rendering VLSFO unavailable by barge during this time. However, LSMGO can still be supplied while at berth. The Western Australian port of Kembla will remain unaffected by the barge dry dock, as bunker deliveries there are exclusively made by truck and ex-pipe.

Melbourne and Geelong in Victoria have ample supplies of VLSFO and LSMGO, although prompt HSFO deliveries may be challenging to secure.

In Queensland, Brisbane and Gladstone ports provide sufficient VLSFO and LSMGO with lead times of about 7-8 days, but HSFO availability in Brisbane is limited. However, bunker deliveries at Gladstone are subject to weather conditions, according to a source.

In New Zealand, Tauranga and Auckland have a good supply of VLSFO, with Auckland also boasting a strong LSMGO supply. However, intermittent rough weather in Tauranga this week could impact bunker operations.

South Asia

VLSFO and LSMGO supplies at Indian ports, including Mumbai, Kandla, Tuticorin, Cochin, and Chennai, remain limited, consistent with recent weeks.

Adverse weather conditions are forecasted at the Kandla and Mumbai ports in India on Thursday, which may potentially disrupt bunker operations at both ports.

In contrast, the Sri Lankan ports of Colombo and Hambantota have good availability of all fuel grades.

Middle East

Despite weak bunker demand, the availability of all fuel grades remains “super tight” in Fujairah, with most suppliers recommending lead times of 7-10 days for all grades, consistent with last week. However, some suppliers are still offering prompt deliveries, according to a source.

Khor Fakkan is experiencing similar conditions, with suggested lead times of 7-10 days.

In Saudi Arabia's Jeddah port, there is an abundant supply of VLSFO and LSMGO, while VLSFO is tight in nearby Djibouti. LSMGO is more readily available in Djibouti.

Omani ports, including Sohar, Salalah, Muscat and Duqm, have ample LSMGO supplies with prompt deliveries available.

By Tuhin Roy

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