East of Suez Fuel Availability Outlook 20 Jan

VLSFO and HSFO availability tight in Singapore

Bunker demand slow in Zhoushan

Several Middle Eastern ports brace for bad weather

IMAGE: Port of Darwin in the Northern Territory, Australia. Getty Images

Singapore and Malaysia

In Singapore, VLSFO availability has tightened further as several suppliers face loading congestion, pushing recommended lead times up to 10–14 days, from 7–11 days last week.

LSMGO remains readily available, with lead times of 2–5 days, largely unchanged from the previous week. HSFO supply continues to be tight, typically requiring 8–12 days of advance notice, broadly in line with last week’s 7–12 days.

Singapore’s residual fuel oil stocks have averaged 1% lower so far in January compared with December, according to the latest data from Enterprise Singapore. The port’s fuel oil inventories have remained above 25 million bbls, supported by a sharp rise in net fuel oil imports, which are up 51% month-to-date. Total fuel oil imports have increased by 310,000 bbls, while exports have fallen sharply by 1.20 million bbls. Middle distillate inventories at the port have also averaged 1% lower so far this month.

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

East Asia

Despite subdued demand, VLSFO availability in Zhoushan has tightened as several suppliers are running low on stocks, prompting recommended lead times to lengthen to 7–10 days from 5–7 days last week. In contrast, lead times for LSMGO and HSFO in Zhoushan remain unchanged at 5–7 days.

Across northern China, fuel availability remains uneven. Dalian and Qingdao have sufficient supplies of VLSFO and LSMGO, although HSFO continues to be tight in Qingdao. In Tianjin, all grades remain in short supply. In Shanghai, availability of both VLSFO and HSFO is still limited, while LSMGO supply remains stable.

Further south, both VLSFO and LSMGO remain tight in Fuzhou. In Xiamen, VLSFO supply is adequate, 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 steady at around seven days for all grades, broadly unchanged from recent weeks.

Across Taiwan, lead times for VLSFO and LSMGO are largely stable. Deliveries at Keelung, Taichung and Hualien continue to require lead times of around two days, in line with last week, while slightly longer lead times of about three days remain recommended at Kaohsiung.

Delivery of fresh bunker stems at several Taiwanese ports will be temporarily suspended during the Chinese New Year holiday period from 17 February to 3 March.

New stem deliveries will be halted from 16–18 February at Keelung Port, Taichung Port and Suao Port, while the suspension will be slightly longer at Hualien Port, from 16–19 February, according to state-owned oil company CPC Corporation.

During this period, only pre-booked stems will be delivered, with bookings generally required by 13 February ahead of the holiday. In contrast, bunkering operations at Kaohsiung Port will continue as normal throughout the holiday period.

In South Korea, most suppliers are currently quoting lead times of around 4–7 days for all grades, shorter than last week’s 6–10 days. However, ongoing winter conditions continue to pose a risk of operational disruptions. Weather-related interruptions may affect Busan and Ulsan between 20–22 January and 24–28 January, Yeosu between 20–28 January, and Daesan between 20–25 January.

In Japan, prompt VLSFO availability remains constrained at major ports including Tokyo, Chiba, Yokohama and Kawasaki. Tight supply conditions are also persisting at Osaka, Kobe, Sakai, Mizushima, Nagoya and Yokkaichi, and are expected to continue through the end of January. By contrast, LSMGO supply 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 of about 5–7 days, while supply remains stable at most other Japanese ports. At Tokuyama, suppliers are currently short of VLSFO, although availability of both LSMGO and HSFO 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 norm.

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, although LSMGO can also be delivered by truck. Strong afternoon winds continue to cause 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 requiring about seven days’ advance notice. Seasonal cruise traffic in Sydney, Cairns and Darwin between December and February is expected to add further 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 experience intermittent weather-related delays. Access constraints persist 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 at 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 healthy 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, the cyclone season in northern Australia, which runs from November to April, is expected to cause intermittent disruptions, with 9–11 cyclones forecast this year.

South Asia

Adverse weather is expected to disrupt bunker operations at the Indian port of Sikka on 25 January.

In Sri Lanka, a supplier in Colombo and Hambantota continues to advise lead times of around six days for all fuel grades, broadly unchanged from the previous week. However, rough weather forecast in Colombo between 20–21 January could temporarily affect bunkering operations.

Middle East

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

Adverse weather is forecast in both Fujairah and Khor Fakkan between 21–22 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 disruptions to bunkering are expected at Jeddah between 23–25 January.

Port Suez is facing contrasting conditions, with stocks of VLSFO, LSMGO and HSFO close to exhaustion. Adverse weather is forecast in Suez on 22 January and in Port Said between 21–22 January, which could hamper operations.

In Ras Laffan, supplies of both VLSFO and LSMGO remain tight. In Djibouti, VLSFO is available, 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. However, adverse weather is forecast in Sohar from 21–22 January and in Salalah between 22–23 January, which could disrupt operations, a source said.

Caution is advised for marine activities across Oman as active northerly to northwesterly winds are expected to affect most regions. Sea wave heights along the coast could reach up to 2.5 metres, while raised dust and sand in desert and open areas may reduce horizontal visibility, according to GAC Hot Port News.

By Tuhin Roy

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