East of Suez Fuel Availability Outlook 13 Jan

Bunker demand low in Zhoushan

VLSFO and LSMGO availability good in Taiwanese ports

VLSFO availability tight across several Japanese ports

IMAGE: Container ship with working crane bridge in shipyard in Singapore. Getty Images

Singapore and Malaysia

In Singapore, VLSFO availability has tightened significantly, with most suppliers now quoting lead times of 7–11 days, up sharply from 2–7 days last week.

LSMGO remains readily available, with lead times holding steady at 3–6 days. HSFO supply continues to be tight, typically requiring 7–12 days of advance notice, largely unchanged from last week’s 7–11 days.

Singapore’s residual fuel oil stocks have averaged 2% lower so far this month compared to December, according to the latest data from Enterprise Singapore. Despite this, total fuel oil inventories have remained above 25 million bbls, supported by a 14% increase in net fuel oil imports so far in January. That said, both inflows and outflows have declined: imports are down by 814,000 bbls, while exports have fallen by a larger 1.24 million bbls.

Middle distillate inventories at the port have also drawn down, slipping by 3% this month to 8.05 million bbls, touching multi-year lows.

At Port Klang, VLSFO and LSMGO are generally well supplied, particularly for smaller prompt stems, while HSFO availability remains restricted and more difficult to secure.

East Asia

In Zhoushan, most suppliers are currently indicating lead times of about 5–7 days for all grades amid subdued demand, broadly unchanged from the 5–8 days quoted last week.

Across northern China, fuel availability remains patchy. Dalian and Qingdao have adequate supplies of VLSFO and LSMGO, though HSFO continues to be tight in Qingdao. In Tianjin, all grades remain in short supply.

In Shanghai, availability of VLSFO and HSFO is still limited, while LSMGO supply remains stable. Further south, both VLSFO and LSMGO are tight in Fuzhou. In Xiamen, VLSFO supply is sufficient, but LSMGO availability is restricted. Delivery options for both grades continue to be constrained in Yangpu and Guangzhou.

In Hong Kong, bunker lead times are holding steady at around seven days for all grades, broadly in line with recent weeks.

In Taiwan, lead times at Keelung, Kaohsiung and Hualien remain unchanged at two days, the same as last week, while suppliers in Taichung are advising slightly longer lead times of around three days.

Bunker demand across South Korea has been subdued over the past week, largely due to adverse weather conditions. Several ports operated under weather-related restrictions between 10–12 January; while these have since been lifted, further bad weather is forecast in the days ahead.

Most suppliers are currently advising lead times of around 6–10 days for all grades, though some are quoting longer lead times after having sold most of their January cargoes. This marks a clear shift from last week, when VLSFO and LSMGO were available with shorter lead times of 2–5 days, while HSFO was offered on an enquiry basis.

Ongoing winter conditions continue to pose a risk of operational disruptions. Busan, Ulsan and Daesan may face weather-related interruptions between 13–18 January, while bunker operations at Yeosu could be impacted on 13 January and again during 15–18 January.

In Japan, prompt VLSFO availability continues to be constrained at major ports such as Tokyo, Chiba, Yokohama and Kawasaki, where most suppliers are advising lead times of around 5–6 days. Tight supply conditions are also persisting at Osaka, Kobe, Sakai, Mizushima, Nagoya and Yokkaichi, and are expected to continue through the end of January. LSMGO supply, by contrast, remains generally stable across the country.

B24-VLSFO is being supplied only on request at Tokyo, Chiba, Kawasaki and Yokohama. HSFO availability has also tightened at Tokyo, Chiba, Yokohama and Kawasaki, with lead times extending to about 8–9 days, while supply remains stable at most other Japanese ports.

At Tokuyama, suppliers are currently short of VLSFO, though both LSMGO and HSFO availability there remains adequate.

Oceania

Across Australia, bunker supply remains broadly stable. VLSFO and LSMGO are readily available nationwide, with seven-day lead times continuing to be the market standard.

In Western Australia, suppliers are recommending lead times of around seven days for deliveries at Kwinana and Fremantle. Most stems are supplied by barge from a single supplier, though LSMGO can also be delivered by truck. Strong afternoon winds continue to trigger occasional scheduling disruptions.

In New South Wales, VLSFO can be delivered by both truck and pipeline at Port Kembla, with pipeline parcels starting at around 70 mt and smaller volumes supplied by truck. Sydney currently has one operational barge and also offers truck deliveries and, at select berths, pipeline supply. Delivery schedules there are frequently adjusted to accommodate naval vessels and cruise ships. While VLSFO and LSMGO inventories remain healthy, HSFO availability is tight, with suppliers typically seeking about seven days’ advance notice. Seasonal cruise traffic in Sydney, Cairns and Darwin between December and February is expected to place additional pressure on delivery schedules.

In Brisbane and Gladstone, VLSFO and LSMGO continue to be supplied with similar seven-day lead times. HSFO is available on request in Brisbane, while Gladstone may still face intermittent weather-related delays. Access constraints remain at Brisbane’s AAT terminal. Two barges—operated by different suppliers—are now active in Brisbane, supplying VLSFO and LSMGO, with HSFO offered only on enquiry.

In Victoria, suppliers in Melbourne and Geelong hold strong inventories of VLSFO and LSMGO. HSFO remains tight for prompt delivery, although Melbourne currently has adequate supply. Both ports rely on a single barge. Lead times are holding steady around seven days, while LSMGO can be delivered by truck to smaller ports such as Portland and Port Welshpool within 2–3 days.

Overall, Australia’s bunker market remains steady, with deliveries within 3–4 days often achievable due to solid inventory levels. Even at ports with pipeline infrastructure, including Darwin and Dampier, suppliers continue to rely heavily on truck deliveries to support distribution.

In New Zealand, bunker supply remains stable. VLSFO is widely available at Tauranga and Auckland, with pipeline access at certain berths in Tauranga. Both VLSFO and LSMGO can be delivered by pipeline to cargo vessels at Marsden Point, while truck availability across South Island ports remains limited.

Meanwhile, cyclone season in northern Australia, which runs from November to April, is expected to cause intermittent disruptions, with 9–11 cyclones forecast this year.

Notably, vessel movements have resumed at North Queensland ports following the passage of Tropical Cyclone Koji over the weekend. Townsville, Mourilyan and Lucinda have been open since Sunday, while Abbot Point remains at red alert, with anchorages and pilotage areas still closed, according to GAC Hot Port News.

South Asia

In Sri Lanka, one supplier is currently quoting lead times of about six days across all fuel grades at both Colombo and Hambantota.

Middle East

Prompt bunker availability remains constrained in Fujairah across all grades, with several suppliers operating on tight delivery schedules. Most are continuing to quote lead times of 5–7 days, though a few can still arrange urgent stems at a premium, according to a source. Similar supply conditions are being reported in Khor Fakkan.

Adverse weather is forecast in both Fujairah and Khor Fakkan between 16–17 January, which is expected to disrupt bunker deliveries.

In Basrah, VLSFO and LSMGO remain readily available, while HSFO supply continues to be limited. At Jeddah, availability of VLSFO and LSMGO has improved, but ongoing port congestion is still slowing bunker delivery operations. Weather-related bunkering disruptions are also expected at Yanbu on 14 January.

Port Suez is facing contrasting conditions, with stocks of VLSFO, LSMGO and HSFO close to exhaustion. Adverse weather is forecast in Port Said between 13–14 January, which could hamper operations. In Ras Laffan, both VLSFO and LSMGO supplies remain tight. VLSFO is available in Djibouti, but LSMGO inventories are nearly depleted.

Across Oman’s ports—Sohar, Salalah, Muscat and Duqm—bunker supply remains stable, with suppliers consistently offering LSMGO on prompt delivery windows.

By Tuhin Roy

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