VLSFO and LSMGO availability improves in Singapore

Availability good in Sri Lankan ports

Several East Asian ports brace for bad weather

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

Singapore and Malaysia

In Singapore, VLSFO lead times have shortened to 5-10 days amid “quiet” demand, down from 7-14 days last week. LSMGO availability has also improved, with several suppliers now advising lead times of 2–6 days, compared to 3–10 days previously. In contrast, HSFO lead times have extended to 7-10 days, up from 2–8 days last week.

According to data from Enterprise Singapore, Singapore’s residual fuel oil stocks averaged 7% lower in May than in April. Total fuel oil inventories dipped below 22 million bbls amid a sharp 53% drop in net fuel oil imports. Imports declined by 1.74 million bbls, while exports rose by 930,000 bbls. Meanwhile, middle distillate stocks at the port increased, averaging 6% higher than the previous month.

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

East Asia

In Zhoushan, VLSFO supply remains stable, with most suppliers advising lead times of 4-7 days. However, HSFO lead times have slightly increased to 4-7 days, up from 3–5 days last week. LSMGO lead times in Zhoushan have improved, now ranging between 2–3 days, down from 4-7 days last week.

In northern China, both Dalian and Qingdao continue to offer good availability of VLSFO and LSMGO, though HSFO supply remains limited in Qingdao. Supply of VLSFO and HSFO is still tight in Tianjin, while LSMGO is readily available.

In Shanghai, supply of VLSFO and HSFO is under pressure, while LSMGO is well-stocked. Further south, Fuzhou reports healthy inventories of both VLSFO and LSMGO. Xiamen has sufficient VLSFO supply, though LSMGO availability is still tight there. Securing prompt deliveries of VLSFO and LSMGO grades can be challenging in Yangpu and Guangzhou.

Lead times for all fuel grades in Hong Kong remain steady at seven days. However, bad weather is forecast between 10-15 June, which could impact bunker deliveries.

According to weather agency Hong Kong Observatory, a low-pressure system in the central South China Sea is expected to develop into a tropical depression by early Wednesday. Strong winds and heavy rains are anticipated later in the week. If the storm strengthens, it will be named Wutip, and the weather agency may issue a typhoon signal by Wednesday or Thursday, depending on the storm's development. 

In Taiwan's ports—Hualien, Keelung, Kaohsiung and Taichung—VLSFO and LSMGO availability remains stable, with lead times holding steady at around two days, unchanged from the previous week.

Lead times for all fuel grades in several South Korean ports have significantly reduced, now ranging from 5-7 days, compared to up to 11 days last week.

However, bunker operations could face disruptions in some ports due to adverse weather conditions. In Ulsan, Onsan, Busan and Yeosu, high waves are expected to affect operations between 14-16 June. Similarly, Daesan and Taean could face disruptions on 16 June.

VLSFO supply remains robust in major Japanese ports such as Tokyo, Chiba, Yokohama and Kawasaki. However, prompt availability is limited in Osaka, Kobe, Sakai and Mizushima, while the grade is particularly tight in Nagoya and Yokkaichi.

LSMGO is generally available, but securing prompt deliveries can be difficult in Osaka, Kobe, Sakai, Nagoya, Yokkaichi and Mizushima. HSFO supply is stable overall, though quick delivery remains restricted in these ports. In Oita, availability of all fuel grades continues to be tight.

Adverse weather conditions are expected to disrupt bunker deliveries at Thailand’s Koh Sichang and Laem Chabang ports during 12-15 June. In Vietnam, rough weather conditions are expected to impact bunker operations in Ho Chi Minh City between 11-16 June. Similarly, Subic Bay in the Philippines may experience weather-related disruptions from 11-12 June.

Oceania

In Western Australia, VLSFO and LSMGO grades are readily available at Kwinana, Fremantle and Port Kembla, with suppliers recommending lead times of 7-8 days.

In New South Wales, suppliers in Sydney can offer a steady supply of LSMGO, but prompt HSFO deliveries can be difficult.

Victoria’s ports — Melbourne and Geelong — have good availability of both VLSFO and LSMGO, though HSFO supply remains limited, especially for immediate delivery. In Queensland, suppliers in Brisbane and Gladstone are well-stocked with VLSFO and LSMGO. Lead times of seven days are recommended. HSFO supply remains tight in Brisbane.

In New Zealand, VLSFO is sufficiently available in Tauranga and Auckland. However, bunker operations in these ports may face disruptions amid forecast of adverse weather conditions between 10-11 June.

South Asia

Adverse weather is expected to disrupt bunker operations at India’s Sikka port from 11-14 June, Kandla from 12-14 June and Cochin from 12-14 June.

In Sri Lanka, lead times of about four days are advised for all fuel grades at Colombo and Hambantota ports. Additionally, bunker operations in Colombo are likely to be affected by bad weather between 10-14 June.

Middle East

In Fujairah, prompt bunker availability remains tight, with lead times for all fuel grades steady at 5–7 days. Similar lead times are required in Khor Fakkan. In Iraq’s Basrah, VLSFO and LSMGO grades are readily available, but HSFO supply is limited.

At Egypt’s Suez port, stocks of all three conventional bunker grades are nearly depleted. Availability of VLSFO and LSMGO is tight in Qatar’s Ras Laffan port.

In Saudi Arabia, supplies of LSMGO and VLSFO in Jeddah remain limited, with adverse weather expected to disrupt bunker operations in Jeddah on 12 June and in Yanbu on 13 June.

Bunker supply in Djibouti is under significant pressure, as VLSFO and HSFO stocks are nearly exhausted and LSMGO supply is low.

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

By Tuhin Roy

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