Singapore and Malaysia
Prompt availability of VLSFO has improved a bit in Singapore. Most suppliers recommend up to 12 days of lead time, while some can accommodate stems in as little as three days in the port. This has improved from the week prior, when traders recommended longer lead times ranging between 9-13 days.
Three suppliers are struggling to meet delivery schedules in Singapore. HSFO prompt supply is tight, with lead times of 8-14 days recommended, unchanged from last week. In contrast, LSMGO has shorter lead times of 3-9 days.
According to Enterprise Singapore’s latest data, Singapore’s residual fuel oil stocks in March have averaged 3% lower than in February. The port experienced a 12% decrease in net fuel oil imports this month, despite increases in both imports and exports. Fuel oil exports surged by 529,000 bbls, while imports saw a modest gain of 12,000 bbls, contributing to the stock decline. Conversely, the port’s middle distillate stocks surged 17% this month to 10.38 million bbls, reaching multi-month high levels.
In Malaysia’s Port Klang, prompt availability for VLSFO and LSMGO remains good, with several suppliers offering prompt supply. HSFO remains very tight due to the low product availability with suppliers.
China, East Asia and Oceania
All grades remain in good supply for prompt dates in Zhoushan, with several suppliers recommending lead times of 2-5 days – largely unchanged from last week. Bunker operations in Zhoushan’s OPL area resumed on Tuesday after being shut down since Friday due to bad weather conditions, a source said. All anchorages in the Chinese bunkering hub were operational on Tuesday.
In north China, Dalian maintains good availability of VLSFO and LSMGO, while Tianjin experiences tightness across all fuel types. Qingdao has ample availability of VLSFO and LSMGO, but HSFO availability is subject to enquiry. In the southern port of Shanghai, VLSFO and LSMGO availability have improved, although HSFO availability is still under pressure. In Fuzhou, Yangpu, and Xiamen, both VLSFO and LSMGO are readily available. However, both low-sulphur fuel grades remain limited in Guangzhou.
In Hong Kong, all bunker fuel grades remain readily available, with lead times of around seven days generally recommended for smooth coverage. Strong wind gusts of 19-22 knots and swells of more than a metre are forecast to hit the port on Wednesday, which might bunker deliveries.
Prompt availability has gotten tighter in several South Korean ports. Suppliers in southern and western ports are now recommending lead times of around 7-10 days, more than a double from 3-4 days in the previous week.
Notably, high waves and strong winds, are forecast in periods through the week in the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu, which could potentially impact bunker operations at these ports.
Bunker demand remains sluggish across Japanese ports, with lead times ranging from 7-10 days in Tokyo, Chiba, Osaka, and Kobe, around 13 days in Nagoya and Yokkaichi, and even longer periods of 15-17 days in Mizushima and Oita.
Rough weather is also forecast in the Vietnamese ports of Ho Chi Minh (26-27 March) and Hai Phong (31 March-1 April) and in the Kiwi port of Tauranga (27-31 March), potentially affecting bunkering operations in these ports.
South Asia
VLSFO and LSMGO supply shortages have been reported in several Indian ports, including the major ports of Kandla, Mumbai, Chennai, Visakhapatnam and Haldia.
In Cochin and Paradip, some suppliers have almost run out of VLSFO and LSMGO stocks, a source says.
Adverse weather conditions are forecast at the Indian ports of Kandla, Sikka, and Visakhapatnam intermittently later this week and early next week, which could potentially disrupt bunkering operations.
On the flipside, the Sri Lankan ports of Trincomalee and Colombo have ample VLSFO and LSMGO supply, along with good availability of HSFO in Trincomalee.
Middle East
Many shipping companies continue to steer clear of the Red Sea route because of ongoing attacks by Houthis on commercial vessels. Instead, they are opting for the longer voyage around Africa, avoiding the shorter Suez Canal route. This change in shipping routes is gradually influencing bunker fuel demand in Fujairah.
Prompt availability remains tight in the UAE port of Fujairah, with many suppliers recommending lead times of 7-10 days for all bunker fuel grades, unchanged from last week. Overall, bunker demand has slowed in the port, a source says.
In the UAE port of Khor Fakkan, most suppliers are recommending lead times of 7-10 days, similar to Fujairah. Suppliers across UAE ports, including Fujairah, Khor Fakkan and Dubai are bracing for potential bunkering disruptions from Tuesday to Friday due to anticipated adverse weather conditions.
In the Saudi Arabian port of Jeddah, both VLSFO and LSMGO are readily available. However, in the nearby port of Djibouti, some suppliers are experiencing VLSFO shortages, while LSMGO supply remains stable.
The Omani ports of Sohar, Salalah, Muscat, and Duqm have abundant LSMGO available.
Source: ENGINE, By Tuhin Roy