Prompt VLSFO availability remains super tight in Singapore. Recommended lead times for the grade range up to 12-16 days. Several suppliers need more than seven days to deliver VLSFO stems in Singapore, a trader says.
At least seven bunker suppliers in Singapore are currently facing tight delivery schedules, a source claims.
HSFO availability also remains tight for both prompt and non-prompt delivery dates in Singapore. Lead times of 14-15 days are recommended for the grade. The grade is even more difficult to secure for stem size of below 500 mt, partly because only a few suppliers can offer them and these are typically priced at steep premiums, a source explains.
LSMGO availability is relatively better than the other two grades in Singapore. Shorter lead times of around five days are recommended for smaller stems, while lead times of more than seven days are recommended for larger stems, a source says.
According to Enterprise Singapore, the port’s residual fuel oil stocks averaged 1% lower in November than in October. Fuel oil imports declined by 20% in November and to their lowest level since May. Fuel oil exports also fell by 22% last month.
Fuel oil cargoes into Singapore primarily arrived from Russia (23% of the total imports), followed by Brazil (10%) and Malaysia (9%) in November, according to cargo tracker Vortexa data.
The port’s middle distillate stocks, however, surged 12% in November.
China, East Asia and Oceania
VLSFO availability remains tight for both prompt and non-prompt delivery dates in Zhoushan. Lack of inflows of VLSFO replenishment cargoes has tightened the supply of the grade there, a source says. Several suppliers are running low on stocks and have refrained from providing lead times. Deliveries of the grade remain subject to enquiries.
In contrast, HSFO and LSMGO availability is normal in the Chinese bunker hub. Lead times of 3-5 days are recommended for HSFO, and 2-4 days for LSMGO.
In northern China, VLSFO and LSMGO supply is good in Dalian. In Tianjin, VLSFO availability is good, but LSMGO and HSFO supply is tight, with deliveries subject to enquiries. In Qingdao, prompt VLSFO and LSMGO availability is limited, and HSFO availability is also subject to enquiry.
VLSFO and LSMGO availability is tight for prompt delivery dates in the southern Chinese ports of Shanghai and Xiamen. HSFO availability is under pressure in Shanghai, as it has been in recent weeks.
Bunker fuel availability is normal in Hong Kong. Lead times of 5-7 days are recommended for all grades in the port, a source says.
Lead times for VLSFO deliveries varied widely between 5-12 days in southern ports in South Korea. Meanwhile, one supplier is able to supply the grade for prompt delivery dates. HSFO requires lead times of 5-10 days.
Bunker fuel availability is normal in western ports in South Korea, where lead times of five days are recommended.
Availability has tightened for all grades in the Japanese port of Tokyo. Lead times of 10-12 days are generally recommended there, up from seven days last week. One Japanese refinery is experiencing delays at one of the product loadings/unloading berths, which has resulted in tight bunker fuel availability in Tokyo, a source says.
Most suppliers in Japan will likely accept new bunker orders until 21 December, before the Christmas and New Year holidays, the source added.
Adverse weather conditions are forecast to hit the Kiwi port of Tauranga on Thursday, which could impact bunkering there.
South Asia
All grades remain in normal availability in India’s Mumbai port. One supplier can supply the grades with lead times of up to two days.
Cyclone Michaung over the southwest Bay of Bengal Sea and the adjoining areas could impact port operations in Bangladesh, according to GAC Hot Port News. Cyclone warning has also been issued in Andhra Pradesh and Tamil Nadu in India. Strong wind gusts of 24 knots are forecast to hit India’s east coast port Visakhapatnam on Tuesday, which could impact bunker operations in the port.
Middle East
Prompt availability remains tight in the UAE port of Fujairah. Lead times of 9-10 days are generally recommended for all bunker fuel grades in the port, slightly up from 7-10 days in the previous week. Bunker demand has been robust in Fujairah, resulting in further tightened supply there, a source says.
VLSFO is almost out of stock in most Omani ports. One major Omani supplier has taken a VLSFO bunker tanker offline because of low demand for the grade and high barge operating costs. This has increased supply pressure on the grade there, a trader says. The grade is only available in the southern port of Salalah in Oman.
LSMGO availability is normal across most Omani ports, including Sohar and Salalah. Lead times of 1-2 days are generally recommended in Sohar.
Source: ENGINE, By Nithin Chandran, https://engine.online/news