East of Suez Fuel Availability Outlook 18 Aug

Bunker demand low in Singapore

Availability tight-but-improving in Zhoushan

Bunker supply tight in several Japanese ports

IMAGE: Container ship with a crane in Singapore. Getty Images

Singapore and Malaysia

Singapore’s VLSFO availability has improved amid low demand, with suppliers now recommending lead times of 7-13 days, down from 12-21 days last week. HSFO supply has also eased, with recommended lead times narrowing to 6-13 days from 12-21 days. LSMGO availability has improved further, with lead times falling to 2-8 days from 4-12 days a week earlier.

Singapore’s residual fuel oil stocks averaged 3% higher so far this month than in July, according to the latest data from Enterprise Singapore. Fuel oil inventories have climbed above 19 million bbls, supported by a 2% increase in net fuel oil imports so far in August. Imports have risen by 789,000 bbls, while exports have increased by 715,000 bbls.

In contrast, middle distillate inventories have declined by 15% so far this month to 7.34 million bbls.

In Malaysia’s Port Klang, bunker supply remains constrained. Prompt VLSFO availability is tight, while LSMGO supply remains limited and HSFO continues to be under pressure.

East Asia

Zhoushan’s VLSFO availability remains constrained despite muted bunker demand. Suppliers are recommending lead times of around 7-10 days, an improvement from around 11 days last week. LSMGO and HSFO lead times have also shortened to 7-10 days from around 11 days previously.

The supply tightness is largely a lingering effect of the two-week suspension of bunkering operations in Zhoushan due to Typhoon Dolphin. Although operations fully resumed on Friday, the prolonged disruption has generated significant backlogs, keeping supply conditions under pressure.

Across northern China, bunker availability remains mixed. Dalian and Qingdao have adequate VLSFO and LSMGO supply, although HSFO remains tight in Qingdao. Tianjin is facing constraints across all three major bunker grades, while Shanghai continues to have limited VLSFO and HSFO availability. LSMGO supply in Shanghai remains relatively stable.

Supply constraints also persist in southern China. Fuzhou continues to face tight VLSFO and LSMGO availability, while Xiamen has sufficient VLSFO but fewer prompt LSMGO stems. Both VLSFO and LSMGO remain constrained in Yangpu and Guangzhou.

Hong Kong’s bunker market is largely unchanged, with suppliers continuing to recommend lead times of around seven days for all major fuel grades.

In Taiwan, VLSFO and LSMGO can be supplied within around two days at Hualien, Kaohsiung and Keelung, while Taichung requires slightly longer lead times of 3-4 days.

Supply in Keelung has also been disrupted by bunker barge maintenance issues. One barge has suffered a major technical failure, while another has been undergoing dry dock maintenance. A bunker barge from Taichung has since been temporarily deployed to support operations and reduce waiting times. The damaged barge is expected to return to service in October, according to a Taiwan-based trader.

Bunker availability at South Korea’s southern ports, including Busan, Ulsan, Masan, Onsan, Yeosu and Kwangyang, remains good. Recommended lead times for VLSFO, LSMGO and HSFO are around five days, compared with 4-6 days last week.

A similar trend is seen at the country’s western ports, including Incheon, Daesan, Dangjin, Pyeongtaek and Taean. Lead times for all three fuel grades stand at around five days, compared with 4-6 days a week ago.

Supply remains tight across Japan’s major bunkering hubs, including Tokyo, Chiba, Kawasaki, Nagoya, Yokkaichi, Osaka, Kobe and Mizushima, where only a limited number of suppliers are offering VLSFO, LSMGO and HSFO. Oita and Kashima are also experiencing constrained availability of VLSFO and HSFO, with lead times of around 10 days recommended.

In Tokyo, Chiba and Kawasaki, the earliest delivery for VLSFO and HSFO requires 10-11 days.

Oceania

VLSFO availability remains steady across Western Australia, with suppliers in Kwinana and Fremantle recommending lead times of around seven days. Both ports rely on a single supplier, with all bunker deliveries conducted by barge.

Supply conditions are more varied along Australia’s east coast. In Port Kembla, VLSFO can be delivered either by truck or pipeline, while Sydney has adequate stocks of both VLSFO and LSMGO. HSFO supply in Sydney is comparatively tighter, with suppliers generally advising lead times of about seven days.

In Queensland, VLSFO and LSMGO remain readily available in Brisbane and Gladstone, with lead times holding at around one week.

Further south, Melbourne and Geelong have comfortable VLSFO inventories. However, both ports depend on a single bunker barge, keeping recommended lead times at approximately seven days. HSFO availability has tightened further in Melbourne and Brisbane.

Meanwhile, one supplier is offering all major bunker grades in Brisbane, Sydney and Melbourne, with lead times of roughly five days.

In Western Australia, pipeline-based bunker deliveries at Dampier Cargo Wharf (DCW) remain suspended until around the end of September as repair work continues. Limited truck deliveries are still possible, depending on vessel size. During the disruption, the supplier has designated the Toll Supply Base (TSB) in Dampier as the preferred location for bunker operations, according to a source.

Across the Tasman, bunker availability in New Zealand remains broadly unchanged. VLSFO is readily available in Tauranga and Auckland, with suppliers recommending lead times of about four days. At Marsden Point, both VLSFO and LSMGO can be delivered directly to vessels via pipeline.

Weather remains the main operational risk in New Zealand. Bunker deliveries in Wellington and ports across the South Island are particularly vulnerable to delays during periods of adverse weather.

South Asia

VLSFO and HSFO availability remains tight at several Indian ports, including Visakhapatnam, Kakinada, Gangavaram, Krishnapatnam, Paradip, Haldia, Chennai, Tuticorin and New Mangalore, according to an India-based source.

HSFO, meanwhile, is available subject to enquiry at Kandla, Sikka, Pipavav and Hazira, the source added.

Adverse weather is expected to disrupt bunker operations at several Indian ports in the coming days. Sikka, Mumbai, Kandla and Visakhapatnam could face operational disruptions between 18-22 August.

In Sri Lanka, intermittent weather-related disruptions are also forecast at Colombo and Trincomalee over the same period, raising the risk of delays to bunker deliveries.

Middle East

Renewed tensions between the US and Iran around the Strait of Hormuz continue to weigh on bunker fuel supply in Fujairah. VLSFO and LSMGO availability remains tight, broadly unchanged from last week, with only a limited number of suppliers able to offer LSMGO. HSFO supply is also constrained.

Supply conditions are more comfortable at nearby Khor Fakkan, where VLSFO and HSFO remain readily available. Despite the heightened regional tensions, bunker demand has increased at both Fujairah and Khor Fakkan, according to a Middle East-based source.

In Saudi Arabia, VLSFO and LSMGO availability at Jeddah remains steady despite stronger demand. However, rough weather is expected to disrupt bunker operations intermittently at Jeddah and Yanbu between 18-20 August.

Bunker availability remains constrained at Qatar’s Ras Laffan, with supplies of both VLSFO and LSMGO still limited.

“Middle Eastern ports are generally operational. There are some delays at some Saudi ports due to additional procedures,” an Oman-based trader said.

Across Oman’s key ports, including Salalah, Muscat, Duqm and Sohar, LSMGO availability remains stable, with suppliers recommending lead times of 2-3 days depending on the port and nomination. Adverse weather forecast in Salalah between 18-22 August could, however, temporarily disrupt bunkering operations, according to a source.

Egyptian ports remain fully operational, although bunker inventories at Port Suez are critically low across all three conventional fuel grades.

Further south, availability of all major bunker fuel grades remains limited in Djibouti.

By Tuhin Roy

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