Singapore
Despite low bunker demand in Singapore this week, VLSFO supply remains under pressure with recommended lead times for delivery extending to 10-15 days. Sources say that at least seven bunker suppliers are currently facing challenges in meeting tight delivery schedules.
Last week, lead times for VLSFO varied widely, ranging from 7-15 days. The situation highlights the ongoing strain on VLSFO availability in the southeast Asian bunker hub.
Availability of HSFO has also tightened in Singapore, with lead times increasing from 5-8 days last week to 10-15 days now. This indicates a growing challenge in securing timely HSFO supply in the port. On a more positive note, supply of LSMGO remains robust, with lead times holding steady at 3-5 days.
China and East Asia
In Zhoushan, VLSFO prices have remained relatively stable despite tight availability. The supply constraints are expected to ease by mid-January, with China’s recent allocation of the first batch of VLSFO export quotas. Conversely, HSFO and LSMGO supply remains strong, with short lead times of 3-5 days.
Moving to the northern Chinese port of Dalian, VLSFO and LSMGO supply has been tightening. All the three main bunker grades face supply pressure in nearby Tianjin, with deliveries subject to inquiry.
Qingdao is experiencing tight prompt availability of VLSFO and LSMGO, with HSFO supply subject to firm inquiry. In southern Chinese ports like Shanghai and Xiamen, there is tight availability for VLSFO and LSMGO, while HSFO availability is constrained in Shanghai. Guangzhou faces tight supply for both VLSFO and LSMGO, and in Fuzhou, both grades are subject to inquiry, contrasting with good supply in Yangpu.
Hong Kong, meanwhile, maintains good availability for all three grades, with consistent 5-7 day lead times.
Moving to South Korean ports, lead times of 8-13 days are recommended for all grades, compared to 10-11 days last week.
In western South Korea, HSFO has faced pressure, leading most suppliers to respond only to firm inquiries. In the southern part of the country, availability has been normal with lead times of 6-8 days.
Notably, high waves are forecast to hit the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean and Yeosu between 5-7 January, potentially impacting bunkering deliveries.
In Japan, a 7.6-magnitude earthquake struck off the coast of Ishikawa, triggering a tsunami warning in coastal prefectures near the Sea of Japan. Though the warning was downgraded and later lifted, Japanese authorities have yet to release a list of impacted ports.
Adverse weather is also forecast in the Philippine port of Subic Bay between 4-8 January and in the Vietnamese port of Hai Phong between 7-8 January, potentially affecting bunkering operations in these ports.
South Asia
Kandla on India’s northwest coast has had stable availability of VLSFO and LSMGO with prompt supply options. Several other Indian ports, including Mumbai, Cochin, Visakhapatnam, Tuticorin, Haldia, and Paradip, are currently facing supply challenges for both grades.
Middle East
Suppliers in Fujairah continue to see healthy demand despite ongoing concerns in the nearby Red Sea. Lead times of around seven days are recommended for all grades in the UAE port.
Source: ENGINE, By Tuhin Roy, https://engine.online/news