Singapore
Prompt VLSFO availability remains tight in Singapore amid strong demand for the grade. At least eight suppliers are grappling with tight delivery schedules, which has added to the supply pressure. Lead times for VLSFO have increased from 9-13 days last week, to 8-17 days now. In contrast, HSFO maintains lead times of 7-10 days, while LSMGO requires a shorter 3-8 days lead time.
Singapore sold about 51.27 million mt of conventional bunker fuels in 2023 – the highest yearly volumes since 2013, according to preliminary figures from the Maritime and Port Authority of Singapore. This increase is attributed to the increase in number of vessels arriving for bunkers in 2023.
Total bio-bunker sales touched 524,000 mt in 2023, an increase from 140,000 mt in 2022.
Looking at the fuel stock situation in Singapore, residual fuel oil stocks have averaged 10% higher this month compared to December, according to Enterprise Singapore’s data. In contrast, middle distillate stocks have seen a 13% decrease so far in January.
China and East Asia
In Zhoushan, VLSFO availability remains tight due to a lack of product supply available with suppliers and delays in the arrival of resupply cargoes. This has stretched lead times to seven days for the grade.
The other two grades – LSMGO and HSFO – remain more readily available with shorter lead times of 3-5 days.
In Dalian, VLSFO and LSMGO supply has tightened, and all three bunker grades are under pressure in nearby Tianjin, with deliveries subject to inquiry. Qingdao is experiencing tight prompt availability of VLSFO and LSMGO, while HSFO supply is subject to firm inquiry.
The southern Chinese ports of Shanghai and Xiamen are facing tight availability for VLSFO and LSMGO, while HSFO availability is constrained in Shanghai. Guangzhou is grappling with a tight supply for both VLSFO and LSMGO, and in Fuzhou, both grades are subject to inquiry. Meanwhile, bunker supply is relatively better in Yangpu.
Hong Kong is also facing a shortage of stocks amid high demand, pushing lead times to almost two weeks now. Bad weather conditions are forecast on Wednesday and may disrupt bunker operations in the port.
In South Korean ports, VLSFO and LSMGO supply has been tight, despite slower demand this week. Recommended lead times vary widely between 4-9 days for both grades in South Korean ports.
High winds and waves are expected to impact bunkering in the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu between 18-21 January, potentially affecting bunker deliveries.
In Japan, sluggish bunker demand due to cold weather conditions is observed, with varying lead times across ports. Lead times of 7-8 days are recommended in Tokyo and Chiba, 7-8 days in Osaka and Kobe, and longer 10-11 days in Oita. The harsh winter has led Japanese refineries to redirect their supply towards heating demand, resulting in reduced availability for bunkers.
All grades remain in tight availability in Nagoya, Yokkaichi and Mizushima.
Adverse weather conditions are forecast in Subic Bay (Philippines) between 16-17 January and intermittently in Ho Chi Minh and Hai Phong (Vietnam) between 17-21 January, posing potential challenges for bunker deliveries.
South Asia
Kandla, situated on India’s northwest coast, has good availability of VLSFO and LSMGO, with prompt supply available. However, several other Indian ports, including Mumbai, Cochin and Chennai, are grappling with supply challenges for both grades.
Suppliers in Visakhapatnam, Paradip and Haldia have nearly depleted their VLSFO and LSMGO stocks, a source says.
Middle East
Persistent attacks on commercial ships in the Red Sea have prompted several shipping companies to reroute vessels via the southern tip of Africa rather than the shorter Suez Canal route. Despite concerns in the Red Sea, Fujairah continues to witness an uptick in demand.
This has kept prompt availability tight for all grades in Fujairah. Most suppliers are recommending lead times of 7-10 days.
A similar scenario is observed in the UAE port of Khor Fakkan, where lead times of 7-10 days are recommended for all fuel grades. On the other hand, LSMGO remains readily available for prompt supply in nearby Omani ports, including Sohar, Salalah, Duqm, and Muscat.
Source: ENGINE, By Tuhin Roy, https://engine.online/news