Singapore and Southeast Asia
In Singapore, the availability of VLSFO for immediate delivery (0-2 days) remains constrained. Despite average demand, most suppliers in Singapore are recommending lead times varying between 5-12 days for the grade. Prompt HSFO supply is also tight, with lead times ranging from 7-13 days, consistent with the previous week. Meanwhile, LSMGO lead times range from 2-8 days, similar to last week.
According to Enterprise Singapore’s latest data, Singapore’s residual fuel oil stocks in the first week of March were 11% lower than in February. The port’s residual stocks have dipped below 20 million bbls despite a 41% increase in net fuel imports.
Both imports and exports have risen this month, with fuel oil imports surpassing exports by 2.80 million bbls. In contrast, middle distillate stocks in Singapore have increased by 12% this month.
In Malaysia’s Port Klang, VLSFO and LSMGO availability remain adequate amidst average demand. Overall, bunker demand has been low in the port compared to last month, when severe congestion in Singapore prompted several bunker buyers to lift bunkers in Port Klang and other nearby ports. Lead times of 3-5 days are recommended for both VLSFO and LSMGO, with some suppliers able to deliver even more quickly depending on stem sizes. HSFO supply remains strained in Port Klang.
China and East Asia
Bunker fuel availability remains good amid subdued demand in Zhoushan. Several suppliers are recommending lead times of 2-5 days, unchanged from last week. Bunker operations were suspended across all anchorages in Zhoushan on Tuesday. Operations are expected to resume on Wednesday with a forecast of calmer weather.
VLSFO and LSMGO availability is restricted in Dalian, while Tianjin encounters tightness across all fuel types. Qingdao experiences limitations in promptly delivering VLSFO and LSMGO, with HSFO supply based on enquiry. In Shanghai and Guangzhou, VLSFO and LSMGO supply is short, while Shanghai faces constraints in HSFO availability. In contrast, Fuzhou, Yangpu and Xiamen report abundant availability of both low-sulphur fuel grades.
In Hong Kong, bunker fuel supply remains robust amid average demand. Majority of suppliers are recommending lead times of around seven days, in line with the previous week. Some can accommodate deliveries more swiftly, depending on stem sizes. But wind gusts of 21-24 knots and swells of over a meter are forecast between Wednesday and Friday, which could potentially disrupt bunker operations at the port.
In South Korean ports, bunker demand remains subdued because of higher bunker prices in comparison to nearby Chinese ports. Busan’s VLSFO premium over Zhoushan stood at $35/mt on Tuesday. VLSFO and HSFO availability remains good, with most suppliers recommending lead times varying between 3-9 days for both grades, virtually unchanged from last week. HSFO requires lead times of around 3-7 days. However, rough weather is forecasted throughout this week, which could potentially impact bunkering in ports including Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu.
In Japan, bunker demand remains sluggish due to elevated prices and restricted cargo availability. Tokyo’s VLSFO price was about $64/mt higher than Zhoushan’s on Tuesday and was $55/mt higher than Singapore’s. Lead times differ across key Japanese ports, spanning from 5-8 days in Tokyo, Chiba, Osaka, and Kobe, to longer durations of 11-15 days in Nagoya, Yokkaichi, Mizushima, and Oita.
Adverse weather conditions are forecast in Subic Bay (Philippines) on 13 March and intermittently in Ho Chi Minh (Vietnam) between 14-18 March, posing potential challenges for bunker deliveries.
South Asia
Numerous ports across India, such as Kandla, Chennai, Visakhapatnam, and Haldia, are encountering difficulties due to shortages of VLSFO and LSMGO. Cochin and Paradip are notably affected, with certain suppliers nearing depletion of their VLSFO and LSMGO stocks.
Additionally, Tuticorin and Mumbai are experiencing dwindling supplies of VLSFO.
Adverse weather conditions are forecast on Wednesday at Indian ports, including Sikka, Kandla and Visakhapatnam, and could potentially disrupt bunkering operations.
Middle East
Many shipping companies continue to steer clear of transiting through the Red Sea due to rising attacks by Houthis on commercial vessels. Instead, more ships are opting for the longer route around Africa, bypassing the shorter Suez Canal route. This shift in shipping routes is gradually impacting bunker fuel demand in Fujairah.
Prompt availability of all bunker fuel grades remains tight in Fujairah due to ongoing weather-related disruptions and bunker backlogs there. Suppliers are projecting lead times of 7-10 days. Supply constraints are also present in the UAE port of Khor Fakkan, where most suppliers are recommending lead times of 7-10 days.
In the Saudi Arabian port of Jeddah, both VLSFO and LSMGO are readily available. On the contrary, certain suppliers in Djibouti are facing VLSFO shortages, though LSMGO remains available.
Meanwhile, Omani ports including Sohar, Salalah, Muscat, and Duqm boast ample LSMGO supply, with prompt supply available.
Source: ENGINE
