Bunker demand low in Zhoushan

Prompt VLSFO tight in several Japanese ports

East Asian ports brace for bad weather

IMAGE: Toyko Bay at sunset. Getty Images



Singapore and Malaysia

VLSFO lead times remain highly inconsistent in Singapore. While some suppliers can deliver within seven days, others advise booking up to four weeks in advance due to long-term nominations. These are typically contract-based orders that take precedence over spot inquiries. Limited stock availability and pending replenishments are also contributing to delays.

In contrast, lead times for LSMGO have improved, with most suppliers now recommending 4–7 days, down from 6–9 days the previous week. HSFO requires 4–9 days of lead time, a narrower and more stable range compared to last week’s 3–12 days.

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

East Asia

VLSFO supply in Zhoushan remains steady amid muted demand, with most suppliers quoting lead times of around six days - largely unchanged from the previous week. HSFO also requires about six days of lead time, similar to last week's 5–7 days. LSMGO lead times remain stable as well, hovering around six days.

In northern China, Dalian and Qingdao continue to have good availability for both VLSFO and LSMGO. However, HSFO remains limited in Qingdao. Supply is tighter in Tianjin, where all three grades - VLSFO, LSMGO and HSFO - are in short supply.

In Shanghai, VLSFO and HSFO are still in limited supply, while LSMGO availability remains comparatively stable.

Further south, availability varies. Fuzhou is seeing tight availability for both VLSFO and LSMGO, whereas Xiamen has sufficient VLSFO but limited LSMGO. In Yangpu and Guangzhou, prompt deliveries for both VLSFO and LSMGO remain tight.

In Hong Kong, lead times for all fuel grades remain steady at approximately seven days. Adverse weather is forecast between 20–21 July, which could impact bunker delivery schedules.

In Taiwan, VLSFO and LSMGO lead times at the ports of Kaohsiung and Taichung are around 3–4 days. In other key ports such as Hualien and Keelung, lead times are shorter - typically about two days.

In South Korea, LSMGO availability remains tight. More bunker buyers are said to have shifted from Chinese to Korean ports, where prices are currently more competitive. Busan’s LSMGO is now priced $10/mt lower than Zhoushan’s. Lead times for LSMGO remain inconsistent in Busan, ranging from 3-10 days. That's an improvement from last week’s 4–14 days.

Supply of VLSFO and HSFO has improved in Busan. Recommended lead times are now shorter at around three days, slightly down from last week’s 2–4 days.

Adverse weather may disrupt bunker operations at multiple Korean ports. Ulsan and Onsan are expected to face interruptions from 15–16 July, while Yeosu may see delays from 19–21 July due to high waves. Similarly, Busan could be affected by high waves and strong winds from 17–21 July, and Daesan and Taean may experience weather-related disruptions between 16–21 July.

Prompt VLSFO supply remains tight at several major Japanese ports, including Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Mizushima, Nagoya and Yokkaichi.

LSMGO is generally well-stocked across Japan, though prompt delivery remains difficult in Mizushima. HSFO availability is steady across many ports in Japan. In Oita, supply remains tight for all fuel grades.

Adverse weather is expected to disrupt bunker deliveries at Thailand’s Koh Sichang and Laem Chabang ports between 18–21 July. In Vietnam, rough sea conditions are also likely to impact operations in Ho Chi Minh from 18–21 July and in Hai Phong on 21 July. Similarly, Subic Bay in the Philippines may face weather-related delays from 19–21 July.

Oceania

In Western Australia, VLSFO and LSMGO are readily available at Kwinana, Fremantle and Port Kembla, with suppliers typically recommending lead times of 7–8 days. In New South Wales, LSMGO supply remains stable in Sydney, but prompt HSFO deliveries continue to be challenging.

In Victoria, both Melbourne and Geelong report good availability of VLSFO and LSMGO. However, HSFO remains in short supply, especially for prompt delivery.

Further north in Queensland, VLSFO and LSMGO are well-stocked at Brisbane and Gladstone, with lead times averaging around seven days. HSFO, however, remains tight in Brisbane.

In New Zealand, VLSFO is sufficiently available in Tauranga and Auckland. Nonetheless, bunker operations in Tauranga may face disruptions due to adverse weather forecast from 16–21 July.

South Asia

VLSFO supply remains tight across several key Indian ports, such as Mundra, Kandla, Mumbai, Tuticorin, Chennai, Visakhapatnam, Cochin and Haldia. Supply has been constrained in recent weeks. LSMGO availability at most ports remains subject to enquiry.

Bunker operations at Cochin are likely to be affected by adverse weather from 18–19 July.

In Sri Lanka, suppliers at Colombo and Hambantota are now recommending lead times of around four days for all fuel grades, a slight increase from the typical four-day average reported last week. However, rough weather expected in Colombo between 15–19 July may disrupt bunker activities.

Middle East

Prompt bunker availability remains tight in Fujairah, with lead times for all fuel grades holding steady at 5–7 days, which is comparable to conditions in nearby Khor Fakkan.

In Iraq's Basrah, VLSFO and LSMGO are readily available, but HSFO remains in limited supply.

In Jeddah, Saudi Arabia, supply of both LSMGO and VLSFO continues to be constrained. Bunker operations in Yanbu may also face delays due to adverse weather forecast for 18 July.

At Egypt’s Suez port, inventories of all three conventional bunker grades - VLSFO, LSMGO, and HSFO - are nearly exhausted. In Qatar’s Ras Laffan, VLSFO and LSMGO supply is currently tight.

Djibouti is under significant supply pressure, with VLSFO and HSFO almost out of stock and limited availability of LSMGO. Bad weather expected between 16–19 July could further disrupt bunker deliveries at the port.

By Tuhin Roy

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