Bunker demand low in Zhoushan

Prompt VLSFO supply tight across several Japanese ports

Several East Asian ports could face weather disruptions

PHOTO: View of Busan Port from Busan Lotte Town Tower, Busan, South Korea. Getty Images

Singapore and Malaysia

In Singapore, VLSFO lead times have increased from 2–10 days last week to 4–10 days now. HSFO lead times have also risen, from 2–4 days to 4–8 days, while LSMGO lead times have improved to 4–5 days, down from 6–9 days last week.

Singapore’s residual fuel oil stocks have averaged 6% lower so far this month compared to February, according to Enterprise Singapore’s latest data. Despite a 59% surge in net fuel oil imports in March, stocks have dropped below 18 million bbls, the lowest level since September. Imports rose by 1.53 million bbls, while exports declined slightly by 44,000 bbls. In contrast, the port’s middle distillate stocks have averaged 6% higher this month.

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

East Asia

VLSFO availability in Zhoushan has improved amid weak demand, reducing lead times from 3-5 days last week to about three days now. Lead times for LSMGO and HSFO have also shortened from 3-5 days to three days.

In northern China, Dalian and Qingdao have ample VLSFO and LSMGO stocks, though HSFO remains scarce in Qingdao. Tianjin faces tight VLSFO and HSFO supplies, while LSMGO remains stable.

In Shanghai, VLSFO and HSFO supply is under pressure, but LSMGO is readily available. Fuzhou maintains a strong supply of both VLSFO and LSMGO, whereas Xiamen has plenty of VLSFO but limited LSMGO. Meanwhile, securing prompt deliveries of VLSFO and LSMGO remains challenging in Yangpu and Guangzhou.

In Hong Kong, lead times for all fuel grades remain unchanged at around seven days, in line with recent weeks. However, adverse weather on Friday may disrupt bunker deliveries.

In Taiwan, VLSFO and LSMGO supplies remain steady in Hualien, Taichung, and Keelung, with lead times holding at approximately two days. In Kaohsiung, deliveries for both fuels require a lead time of three days.

In several South Korean ports, recommended lead times for all fuel grades have increased to 3–8 days, up from around three days.

Bunker operations in Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu may experience intermittent disruptions from 25-31 March due to high waves and strong winds.

In Japan, prompt VLSFO supply remains tight across multiple ports, including Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya, Yokkaichi, and Mizushima. LSMGO availability is stable, though securing prompt deliveries can be challenging in Osaka, Kobe, Sakai, Nagoya, Yokkaichi, and Mizushima.

HSFO is readily available at several ports, including Tokyo, Chiba, Yokohama, and Kawasaki, but prompt supply remains constrained in Osaka, Kobe, Sakai, Nagoya, Yokkaichi, and Mizushima. Meanwhile, all fuel grades in Oita are subject to availability.

Ho Chi Minh in Vietnam and Subic Bay in the Philippines could face adverse weather on 27 March and 30 March, respectively, potentially disrupting bunkering operations. Likewise, bunker deliveries at Thailand’s Koh Sichang and Laem Chabang ports may be impacted by rough weather on 26 March.

Oceania

In Western Australia, Kwinana, Fremantle, and Kembla have strong VLSFO and LSMGO supplies, with lead times of 7–8 days. In New South Wales, Sydney has ample LSMGO availability, though HSFO may require longer lead times.

In Victoria, Melbourne and Geelong hold abundant VLSFO and LSMGO stocks, but securing prompt HSFO deliveries can be challenging. In Queensland, Brisbane and Gladstone maintain sufficient VLSFO and LSMGO supplies, also with 7–8 day lead times, though HSFO availability in Brisbane remains limited.

In New Zealand, Tauranga and Auckland have adequate VLSFO stocks, with Auckland also offering sufficient LSMGO. However, rough weather in Tauranga on 27 March and 29 March may disrupt bunker operations.

South Asia

VLSFO remains in tight supply at several Indian ports, including Mundra, Kandla, Mumbai, Tuticorin, Chennai, Visakhapatnam, Cochin, and Haldia, reflecting conditions from recent weeks. In Paradip, a supplier is approaching stock depletion. LSMGO availability across most Indian ports is subject to enquiry.

In Sri Lanka, suppliers in Colombo maintain good stocks of VLSFO and LSMGO, with lead times of approximately six days, nearly unchanged from last week. Similarly, in Hambantota, both grades require lead times of around six days.

Middle East

In Fujairah, prompt bunker availability remains tight, with lead times for all grades holding steady at 5–7 days, unchanged from last week. Suppliers in Khor Fakkan also recommend similar lead times. However, bunkering operations may be disrupted due to adverse weather expected at both ports until tomorrow.

In Jeddah, VLSFO supply remains limited, while LSMGO availability is sufficient.

In Djibouti, bunker supply is under pressure, with VLSFO and HSFO stocks nearly depleted and LSMGO running low.

Bunker deliveries at Egypt’s Port Said and Suez could be impacted by bad weather on 28 March.

At Omani ports, including Sohar, Salalah, Muscat, and Duqm, LSMGO supply remains ample. However, adverse weather in Salalah on 26 March may affect bunker deliveries.

By Tuhin Roy

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