Singapore
Despite average bunker demand in Singapore this week, the availability of VLSFO remains constrained, leading to extended lead times of 9-13 days. Several suppliers are facing challenges in meeting delivery schedules, contributing to longer delivery lead times.
In contrast, HSFO availability has improved in Singapore, with lead times decreasing from 7-15 days last week to 6-9 days now. LSMGO requires lead times of 3-7 days, almost unchanged from the previous week.
Enterprise Singapore data revealed that residual fuel oil stocks in Singapore were 10% higher in December compared to November. However, the port’s middle distillate stocks experienced a notable decline, averaging 18% lower during the same period.
China and East Asia
In Zhoushan, VLSFO supply pressure continues to persist, with lead times for most suppliers stretching to one week out. Meanwhile, HSFO and LSMGO supply has been relatively better. Lead times of 3-5 days are recommended for both grades, unchanged from the previous week.
In the northern Chinese port of Dalian and the southern ports of Shanghai and Xiamen, VLSFO and LSMGO lead times hover around a week, according to a source.
Availability has tightened across all grades in Hong Kong. Recommended lead times have doubled from last week’s seven days to 14 days now.
South Korean ports’ delivery lead times have improved for all grades amid moderate demand. Suppliers in southern and western ports are now recommending lead times of 4-7 days and 2-5 days, respectively, compared to 8-13 days in the previous week.
Notably, adverse weather conditions, including high waves and strong winds, are forecast intermittently between 10-14 January in the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu, which could potentially impact bunker operations.
In Japan, rough weather conditions have dented bunker demand. Lead times of around 6-7 days are recommended for all grades in the Japanese ports of Nagoya, Yokkaichi, Tokyo, Chiba, Osaka, and Kobe, and about 10 days in the ports of Mizushima and Oita.
Additionally, adverse weather conditions are predicted in the Philippine port of Subic Bay on 14 January, posing potential challenges for bunker deliveries.
South Asia
Adverse weather is also forecast at the Indian ports of Kandla, Sikka, and Cochin on Wednesday, which could potentially disrupt bunkering operations.
On the other hand, the Sri Lankan ports of Colombo and Trincomalee have a good supply of both VLSFO and LSMGO, a source says.
Middle East
Some suppliers in Fujairah have reported healthy bunker demand despite ongoing concerns in the nearby Red Sea. The recent attacks on ships transiting the Red Sea have compelled several shipping companies to reroute their vessels via the southern tip of Africa instead of the shorter Suez Canal route.
Prompt availability of all grades remains tight in Fujairah, with lead times of 7-10 days recommended for all grades. Some suppliers can still supply prompt stems for all grades, a source claims. Bunkering also continues to run smoothly in the other UAE port of Khor Fakkan, with several suppliers advising lead times of 7-10 days for all grades.
Source: ENGINE, By Tuhin Roy, https://engine.online/news