VLSFO availability tight in Zhoushan

Prompt VLSFO supply tight across several Japanese ports

Several East Asian ports could face weather disruptions

IMAGE: Cargo ships docked at Tauranga Harbour Port with Mount Maunganui in the background. Getty Images

Singapore and Malaysia

In Singapore, VLSFO lead times remain stable at 8–15 days amid sluggish demand, according to a source. LSMGO lead times have improved slightly, now ranging from 4–7 days compared to last week's 5–9 days. HSFO lead times remain inconsistent, fluctuating between 2–9 days.

Singapore’s residual fuel oil inventories have averaged 10% lower in May compared to April, based on data from Enterprise Singapore. Stocks have dipped below 21 million bbls amid a sharp 56% reduction in net fuel imports. So far this month, imports have dropped by 1.60 million bbls, while exports have increased by 1.20 million bbls. In contrast, middle distillate stocks have risen, averaging 7% higher than in the previous month.

At Malaysia’s Port Klang, both VLSFO and LSMGO are readily available, with prompt deliveries possible for smaller quantities. However, HSFO supply remains limited.

East Asia

In Zhoushan, VLSFO supply has tightened due to low inventories among several suppliers, pushing recommended lead times up to 7–10 days from last week’s 4–7 days. HSFO lead times have also lengthened, now at 5–7 days compared to 3–5 days previously. LSMGO lead times remain unchanged at 3–5 days.

In northern China, Dalian and Qingdao maintain healthy availability of both VLSFO and LSMGO. However, HSFO remains limited in Qingdao. Tianjin continues to face tight supply of both VLSFO and HSFO, while LSMGO remains readily available.

In Shanghai, pressure persists on VLSFO and HSFO availability, though LSMGO is in good supply. Further south, Fuzhou reports ample stocks of both VLSFO and LSMGO. Xiamen has sufficient VLSFO, but LSMGO is in tight supply. 

Prompt delivery of both VLSFO and LSMGO remains challenging in Yangpu and Guangzhou.

In Hong Kong, lead times for all fuel grades remain steady at around seven days. However, adverse weather is expected on 28 May and again from 30–31 May, potentially impacting bunker operations.

Across Taiwan’s ports—including Hualien, Keelung, Kaohsiung, and Taichung—VLSFO and LSMGO availability remains stable, with lead times holding at approximately two days, unchanged from last week.

Bunker availability across all grades is strong at several South Korean ports, with most suppliers suggesting lead times of about two days.

However, bunker operations in Ulsan, Onsan, and Busan may be disrupted from 30 May-2 June due to high waves and strong winds. Similarly, Daesan and Taean are expected to experience interruptions on 2 June, while Yeosu could face disruptions between 31 May-2 June because of rough sea conditions.

VLSFO remains in tight supply at several Japanese ports, including Tokyo, Chiba, Yokohama, and Kawasaki. Prompt availability of the grade is also constrained in Osaka, Kobe, Sakai, Nagoya, Yokkaichi, and Mizushima.

While LSMGO is generally available, securing prompt deliveries is challenging in these same ports. HSFO supply is stable overall, though prompt delivery is limited in Mizushima. Availability of all fuel grades remains tight in Oita.

Adverse weather conditions are likely to disrupt bunker deliveries in Thailand’s Koh Sichang on 28 May and again between 30–31 May, and in Leam Chabang from 30 May through 1–2 June. In Vietnam, rough weather is also expected to hamper bunker operations in Ho Chi Minh on 2 June.

Oceania

In Western Australia, VLSFO and LSMGO are readily available at Kwinana, Fremantle, and Port Kembla, with suppliers recommending lead times of 7–8 days. In New South Wales, Sydney maintains a solid supply of LSMGO, though prompt HSFO deliveries remain challenging.

Victoria’s ports of Melbourne and Geelong report good availability of VLSFO and LSMGO, while prompt access to HSFO continues to be limited. In Queensland, Brisbane and Gladstone are well-stocked with VLSFO and LSMGO, also with lead times of 7–8 days. However, HSFO remains scarce in Brisbane.

In New Zealand, VLSFO supply is sufficient in both Tauranga and Auckland. However, adverse weather is forecast from 28 May-2 June, potentially disrupting bunker operations.

South Asia

VLSFO supply remains tight at several Indian ports—including Mundra, Kandla, Mumbai, Tuticorin, Chennai, Visakhapatnam, and Cochin—continuing the trend observed in recent weeks. In Haldia and Paradip, a supplier is reportedly close to running out of stock. LSMGO availability across most Indian ports remains subject to enquiry.

Adverse weather is expected to affect bunker operations at multiple Indian ports: Kochi between 27–30 May, Kandla from 27–31 May, Sikka from 27–31 May, and Visakhapatnam on 29 May.

The early onset of the monsoon has already impacted bunkering at some west coast ports, including Mundra, Kandla, and Sikka in Gujarat, and Kochi in Kerala. Swell and heavy rains have been causing delivery delays, according to a source.

At Sri Lanka’s Colombo and Hambantota ports, lead times have increased significantly—from around four days last week to approximately nine days now. Bad weather is also expected to disrupt bunker operations in Colombo on 29 May.

Middle East

In Fujairah, bunker availability remains tight, with lead times for all fuel grades steady at 5–7 days. Khor Fakkan requires similar lead times for bunker deliveries.

In Saudi Arabia, Jeddah has sufficient LSMGO but limited VLSFO availability. Bunker operations there could be impacted by bad weather on 28 May, while Yanbu may face similar disruptions between 27–30 May.

Bunker supply in Djibouti is under strain, with VLSFO and HSFO stocks nearly depleted and LSMGO running low. Rough weather between 29–31 May could further affect deliveries.

Omani ports—Sohar, Salalah, Muscat, and Duqm—continue to maintain strong LSMGO availability.

By Tuhin Roy

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