VLSFO and LSMGO availability good in Port Klang

Bunkering activity muted in several East Asian ports

Supply tight across several Indian ports

PHOTO: A cruise ship in Colombo port in Sri Lanka. Lanka Marine Services

Singapore and Malaysia

VLSFO availability in Singapore remains tight, with lead times unchanged at 7-11 days. HSFO lead times have increased from 7-9 days last week to 10-12 days, while LSMGO lead times have improved from 5-7 days to 3-6 days.

Adverse weather is forecast in Singapore over the next two days, potentially disrupting bunkering operations.

Singapore's residual fuel oil stocks have averaged 6% lower this month compared to December, according to Enterprise Singapore. Fuel oil stocks have fallen below 21 million bbls amid an 18% decline in net fuel imports in January. Imports dropped by 105,000 bbls, while exports surged by 834,000 bbls.

Middle distillate stocks in the port, which include gasoil, have averaged 12% lower so far this month.

At Malaysia’s Port Klang, VLSFO and LSMGO supplies are abundant, with prompt small-quantity deliveries readily available, while HSFO supply remains limited.

East Asia

In Zhoushan, lead times of around 7-9 days are recommended for VLSFO and LSMGO deliveries, largely unchanged from last week. However, HSFO availability has tightened, with recommended lead times now extending into mid-February as several suppliers face low stock levels. Last week, HSFO required lead times of around 5-7 days.

Zhoushan’s Hi5 spread has narrowed to approximately $50/mt, as the port's VLSFO price has declined throughout the month, while its HSFO price has remained steady. Zhoushan’s VLSFO price has been gradually decreasing since mid-January, influenced by the first round of China’s VLSFO export quotas, according to a source.

The Chinese government has allocated 8 million mt of VLSFO export quotas for bonded bunkering in 2025, according to market intelligence provider JLC. These quotas are expected to boost domestic VLSFO production to 1.30-1.35 million mt in January 2025, up from an estimated 390,000 mt in December 2024, JLC reports.

In northern China, Dalian and Qingdao ports have ample VLSFO and LSMGO supplies, though Qingdao is facing limited HSFO availability. Tianjin is experiencing tight supplies of both HSFO and VLSFO, while LSMGO availability remains stable.

In Shanghai, LSMGO is readily available, but VLSFO and HSFO supplies are restricted. Fuzhou has robust supplies of both VLSFO and LSMGO, whereas Xiamen has strong VLSFO availability but limited LSMGO supply. At Yangpu and Guangzhou, prompt deliveries of both VLSFO and LSMGO remain constrained.

Bunker demand across China is subdued due to the Chinese New Year holidays from 28 January to 4 February, during which most suppliers will not accept new orders.

In Taiwan, bunkering services at Keelung, Taichung and Suao ports will be suspended from 28 to 30 January for the Chinese New Year holidays, while Hualien port will remain closed from 28 to 31 January. Kaohsiung port will continue to provide bunkering services throughout the holiday period.

The LSMGO bunker barge Chung Yu No. 16 has returned to Kaohsiung after undergoing maintenance from 26 December to 24 January, according to a source. Its return is expected to alleviate supply tightness at the port. Kaohsiung currently has adequate VLSFO and LSMGO availability, with a recommended lead time of two days.

In Hong Kong, lead times for all fuel grades remain steady at around seven days, consistent with recent weeks. However, adverse weather forecast for 30–31 January could complicate bunker deliveries.

In South Korea, availability of all fuel grades has tightened as several suppliers have halted operations for the Korean New Year holidays, which run from 27 to 30 January. Lead times have increased from 3-6 days last week, to approximately 5-11 days now.

Additionally, high winds and rough seas conditions are forecast to hit Ulsan, Onsan, Busan, Daesan, Taean and Yeosu between 28 January and 3 February, potentially disrupting bunker operations at these ports.

In Japan, VLSFO is widely available at major ports such as Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya and Yokkaichi. However, prompt supply remains limited in Mizushima. LSMGO supplies are stable overall, but securing prompt deliveries can be difficult at Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya, Yokkaichi and Mizushima.

HSFO availability is tight across all ports, while in Oita, all fuel grades remain subject to availability.

Subic Bay in the Philippines may face adverse weather conditions from 29 to 31 January, potentially disrupting bunkering operations.

Oceania

In Western Australia, Kwinana, Fremantle and Kembla ports have ample VLSFO and LSMGO supplies, with standard lead times of 7–8 days. However, bad weather has halted operations at Kembla anchorage, with all vessels instructed to drift safely off the coast, as per GAC Hot Port News.

In New South Wales, LSMGO availability is normal in Sydney, though HSFO may require extended lead times. Suppliers in Victoria, Melbourne and Geelong have sufficient VLSFO and LSMGO stocks, but prompt HSFO deliveries remain challenging to secure. 

Suppliers in Queensland, Brisbane and Gladstone have adequate VLSFO and LSMGO supplies, with lead times of 7–8 days, but HSFO availability in Brisbane is limited.

In New Zealand, Tauranga and Auckland have sufficient VLSFO stocks, with Auckland also offering ample LSMGO availability.

South Asia

VLSFO and LSMGO availability at several Indian ports, including Kandla, Mumbai, Tuticorin, Chennai, Visakhapatnam, Cochin and Paradip, remains subject to enquiry, as has been in previous weeks. Additionally, a supplier in Haldia is nearly out of stock.

In Sri Lanka's Colombo and Hambantota ports, lead times for all fuel grades have increased from around six days last week to approximately nine days now.

Middle East

In Fujairah, prompt availability remains tight despite weak demand, with lead times for all fuel grades holding steady at 5–7 days. However, some suppliers can provide prompt stems at higher costs. Similarly, suppliers in Khor Fakkan are recommending lead times of 5–7 days for all grades.

In contrast, Jeddah port in Saudi Arabia has adequate supplies of both VLSFO and LSMGO. While VLSFO supply in Djibouti is under pressure, LSMGO remains more readily available. Omani ports, including Sohar, Salalah, Muscat and Duqm, continue to have ample LSMGO supplies, with prompt deliveries available.

By Tuhin Roy

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