VLSFO availability improves in Singapore

Prompt VLSFO supply tight across several Japanese ports

Bunker demand low in Fujairah

IMAGE: Harbour view of Fremantle Port, Australia. Getty Images


Singapore and Malaysia

VLSFO availability has improved amid low demand and better supply, with most suppliers now recommending lead times of 9–11 days. Last week, lead times varied more widely, ranging from five days to up to three weeks.

HSFO currently requires 9–11 days for delivery, slightly more consistent than last week's range of 8–13 days. In contrast, LSMGO delivery times have increased, with most suppliers now quoting 5–7 days, up from 2–6 days the previous week.

Residual fuel oil stocks in Singapore have averaged 5% higher so far this month compared to June, according to Enterprise Singapore.

The port’s fuel oil inventories have risen to over 23 million barrels, driven by a sharp 41% increase in net fuel oil imports in July. Imports have grown by 1.85 million bbls, outpacing the 829,000-bbl rise in exports, resulting in a net stock build. In contrast, middle distillate inventories at the port have declined, averaging 16% lower than last month’s levels.

At Malaysia’s Port Klang, VLSFO and LSMGO supplies are readily available, with immediate delivery possible for smaller volumes. However, HSFO availability remains tight.

East Asia

VLSFO supply in Zhoushan remains stable, with most suppliers recommending lead times of 5–7 days, unchanged from the previous week. HSFO delivery times are also steady at 5–7 days, while LSMGO lead times continue to hold around 5–7 days as well.

However, bunker operations at Zhoushan’s inner and outer anchorages have been suspended since 24 July due to rough weather, a source reported. Typhoon Co-May (also referred to as Typhoon No. 8), which passed near Okinawa Island on the eve of 28 July, is currently moving northwestward over the East China Sea and is expected to make landfall on the Chinese mainland in the coming days, according to the Japan Meteorological Agency (JMA).

Bunkering at inner anchorages of Xiushandong and Mazhi was halted on 24 July, while operations at outer anchorages, including Tiaozhoumen and Xiazhimen, were suspended earlier on 21 July. Most suppliers expect bunker operations to fully resume after 30 July, another source noted.

Across northern China, Dalian and Qingdao maintain good availability of both VLSFO and LSMGO, though Qingdao is currently facing limited HSFO supply. Tianjin, on the other hand, is experiencing tight supply conditions across all three fuel grades—VLSFO, LSMGO, and HSFO.

In Shanghai, VLSFO and HSFO supplies remain restricted, while LSMGO availability is relatively stable.

In the southern ports, supply conditions vary. Fuzhou is facing tight availability for both VLSFO and LSMGO. Xiamen has adequate VLSFO but limited LSMGO supply. Yangpu and Guangzhou are both experiencing constraints on prompt deliveries for VLSFO and LSMGO.

In Hong Kong, lead times for all fuel grades remain stable at around seven days.

In Taiwan, VLSFO and LSMGO lead times at Taichung port are holding steady at approximately three days, virtually unchanged from the previous week. Other major Taiwanese ports—Hualien, Kaohsiung, and Keelung—offer shorter lead times, typically requiring about two days for delivery.

In South Korea, LSMGO supply remains limited, with availability subject to enquiry. However, some suppliers can offer the grade with a lead time of 3–6 days if it is ordered alongside VLSFO, according to a trader. VLSFO and HSFO availability continues to be stable across South Korean ports, with recommended lead times of 3–6 days, nearly unchanged from last week.

In Japan, prompt VLSFO availability remains tight at several major ports, including Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Mizushima, Nagoya, and Yokkaichi. LSMGO stock levels are generally healthy throughout the country, though Mizushima is facing delays in prompt deliveries. HSFO supply remains steady at most Japanese ports, while Oita is experiencing tight availability across all three fuel grades.

Meanwhile, Typhoon Krosa, also referred to as Typhoon No. 9, approached the Ogasawara Islands early Tuesday and is expected to linger near the area through Thursday, according to the JMA.

The agency also issued warnings of high waves, swells, and strong winds. None of the ports have been affected so far, but they could be in the coming days, a source said.

In the Philippines, vessel docking at Calaca Port is currently on hold due to rough sea conditions. Ships already at the terminal have been advised to remain alert and monitor weather conditions closely. At Subic Bay, vessel movement restrictions were lifted on Sunday, according to GAC Hot Port News.

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, Sydney maintains a stable supply of LSMGO, although prompt HSFO deliveries remain challenging.

In Victoria, the ports of Melbourne and Geelong report strong availability for both VLSFO and LSMGO. In contrast, HSFO supply remains limited, especially for immediate delivery needs.

Further north in Queensland, Brisbane and Gladstone have well-stocked inventories of VLSFO and LSMGO, with average lead times around seven days. However, Brisbane continues to face tight HSFO availability.

In New Zealand, VLSFO supply is sufficient at both Tauranga and Auckland.

South Asia

In Sri Lanka, a supplier operating in both Colombo and Hambantota continues to recommend lead times of approximately three days for all fuel grades, showing little variation from the previous week.

Middle East

Fujairah continues to face tight prompt bunker availability, despite low demand, with lead times for all fuel grades holding steady at 5–7 days. Some suppliers can still accommodate prompt stems, though typically at higher prices. Similar conditions are reported at nearby Khor Fakkan.

In Iraq’s Basrah, VLSFO and LSMGO remain readily available, while HSFO supply is still limited. In Saudi Arabia’s Jeddah, both VLSFO and LSMGO continue to face supply constraints.

At Egypt’s Suez port, inventories of all three conventional fuel grades, VLSFO, LSMGO, and HSFO, are low, with stocks nearly depleted. Qatar’s Ras Laffan is also experiencing tight supply for both VLSFO and LSMGO.

Djibouti is under severe supply pressure, with VLSFO and HSFO stocks nearly exhausted, and limited LSMGO availability as well.

In contrast, Omani ports including Sohar, Salalah, Muscat, and Duqm continue to maintain stable LSMGO supply.

By Tuhin Roy

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