East of Suez Fuel Availability Outlook 10 Mar

Availability is tight in Singapore

HSFO extremely tight in South Korean ports

Operations continue in Middle East ports despite escalating regional crisis

IMAGE: Aerial view of Jebel Ali Port, Dubai. Getty Images

Singapore and Malaysia

Singapore’s VLSFO and LSMGO prices have both climbed above the $1,000/mt mark amid elevated crude prices, tightening supply and escalating geopolitical tensions in the Middle East.

The latest surge in bunker prices has largely been fuelled by escalating tensions in the region, which has driven Brent crude sharply higher and disrupted trade flows through the Strait of Hormuz, a critical corridor for global oil shipments. “Seeing a big spike in [Singapore bunker] prices in line with Brent due the Middle East crisis,” a trader said.

Tighter supply conditions have also added upward pressure on prices, a source noted. Lead times for VLSFO in Singapore has expanded to around 12–16 days, up from 7–11 days last week. LSMGO supply has tightened even more noticeably, with recommended lead times stretching to 13–17 days compared with 4–11 days in the previous week, the source added.

HSFO prices in Singapore have also rallied sharply, reaching multi-year highs as tensions in the Middle East continue to escalate. Availability of the grade has tightened alongside the price increase, with lead times extending to 11–15 days from 8–11 days a week earlier.

Another notable development has emerged in the port, where some suppliers have paused new bookings for B24-VLSFO. The move may seem unusual given that a large share of UCO/UCOME feedstock originates from China. However, suppliers may be prioritising sales of conventional VLSFO to capitalise on the current price spike before offering biofuel blends, a trader explained.

Elsewhere in the region, Port Klang continues to report generally adequate VLSFO availability, particularly for smaller prompt stems. However, LSMGO supply has tightened in the port, while HSFO availability remains limited, making both grades more difficult to secure.

East Asia

Bunker prices in Zhoushan have continued to firm as escalating geopolitical tensions in the Middle East drive Brent crude higher and disrupt trade flows through the Strait of Hormuz, a key artery for global oil shipments. The resulting uncertainty has tightened fuel availability across all grades in the port, lending further support to rising prices, a source said.

Supply pressures have also extended delivery schedules. Recommended lead times for both VLSFO and LSMGO have increased to around 5–10 days, up from 3–5 days last week. HSFO supply appears particularly tight, with most suppliers running low on inventories and refraining from offering any lead time indications for the grade, the source added.

Supply conditions vary across northern China. Dalian and Qingdao report adequate availability of VLSFO and LSMGO, although HSFO remains limited in Qingdao. Tianjin is experiencing tight supply across all grades. In Shanghai, VLSFO and HSFO stocks are constrained, while LSMGO availability remains relatively stable.

Further south, supply pressures are evident in several ports. Fuzhou is facing tight availability of both VLSFO and LSMGO. Xiamen reports sufficient VLSFO stocks, though LSMGO supply remains restricted. Delivery schedules in Yangpu and Guangzhou are also tight for both grades.

In Hong Kong, bunker supply conditions have remained broadly steady, with recommended lead times holding at around seven days for all grades in recent weeks.

In Taiwan, supply has so far seen only “a slight impact,” though it could affect “availability in near future.” Pricing, however, has reacted more strongly, with the Brent rally triggered by escalating tensions in the Middle East having “influenced” bunker prices significantly over the weekend, the trader added.

MGO supply at Kaohsiung is expected to tighten between 8 March and 10 April as the bunker barge Chung Yu No. 16 undergoes its scheduled annual maintenance, according to state-owned CPC Corporation.

With the barge temporarily out of operation, about one-third of the port’s MGO supply capacity will be offline, a source said. This reduction is likely to constrain MGO availability and could lead to longer waiting times for vessels seeking to bunker.

VLSFO supply in Kaohsiung will remain unaffected during this period, while HSFO is currently unavailable.

At other major Taiwanese ports, bunker supply conditions remain largely stable. Hualien in the south, Taichung on the west coast, and Keelung in the north have not reported any notable changes.

Recommended lead times for VLSFO and MGO in Keelung, Taichung and Hualien are around two days.

In South Korea, most suppliers are now recommending lead times of 4–6 days for both VLSFO and LSMGO, compared to last week’s broader 5–7 day range. HSFO supply is extremely tight, with most suppliers unwilling to quote prices or delivery schedules unless approached with a firm enquiry, a source said.

Seasonal winter weather continues to pose a risk to bunker operations. Potential weather-related disruptions could impact Busan and Ulsan between 11–14 March, Yeosu on 13 March, and Daesan during 15–16 March.

Supply conditions in Japan have tightened further as tensions in the Middle East escalate. Major suppliers are currently refraining from issuing new offers for ocean-going vessels. Availability has also become severely restricted due to significant supply cuts in the domestic market. New enquiries are largely not being entertained, and the only remote possibility of securing supply may arise from replacing a cancelled slot, though even that scenario is considered unlikely, a Japan-based trader said.

As a result, bunker availability across all grades in major Japanese hubs—including Tokyo, Chiba, Yokohama, Kawasaki, Nagoya, Yokkaichi, Mizushima, Tokuyama and Oita—is now assessed strictly on an enquiry basis.

Bunkering demand in the country is also expected to be muted on 20 March due to the Vernal Equinox Day public holiday.

In Indonesia, supply conditions remain relatively stable. VLSFO availability continues to be steady in Jakarta, Surabaya, Balikpapan and Cigading, with suppliers typically quoting lead times of around 2–3 days. LSMGO supply is also stable in Jakarta, Benoa, Surabaya and Batam. HSFO stocks are reported to be well supplied in Jakarta, Surabaya and Balikpapan, according to a trader.

Oceania

Bunker supply across Australia remains largely stable. VLSFO and LSMGO are broadly available nationwide, with suppliers typically advising lead times of around seven days.

In Western Australia, suppliers in Kwinana and Fremantle generally request about a week’s notice. Deliveries are mainly conducted by barge through a single provider, while LSMGO can also be transported by truck.

In New South Wales, VLSFO deliveries at Port Kembla can be arranged via truck or pipeline. Sydney holds healthy stocks of both VLSFO and LSMGO, although HSFO availability remains tight, with suppliers usually requiring around seven days’ notice.

In Queensland, the ports of Brisbane and Gladstone are supplying VLSFO and LSMGO with lead times of roughly seven days. HSFO can be supplied on request in Brisbane. Two barges operated by separate suppliers handle VLSFO and LSMGO deliveries there, while HSFO is offered on an enquiry basis.

In Victoria, Melbourne and Geelong report robust inventories of VLSFO and LSMGO. HSFO availability is limited for prompt deliveries, although Melbourne currently maintains sufficient volumes. Both ports rely on a single barge for bunker operations, with lead times close to seven days. LSMGO can also be delivered by truck to smaller ports such as Portland and Port Welshpool within about 2–3 days.

Overall, Australia’s bunker market appears well balanced. With comfortable inventory levels, many deliveries can be arranged within three to four days. Even at ports equipped with pipeline infrastructure, such as Darwin and Dampier, trucks remain a key component of the supply chain.

In New Zealand, bunker supply conditions remain stable. VLSFO is readily available in Tauranga and Auckland, with pipeline connections available at some Tauranga berths. Marsden Point can supply both VLSFO and LSMGO via pipeline to cargo vessels, although truck-based deliveries to ports across the South Island continue to face constraints.

South Asia

Adverse weather is expected to affect port operations at India’s Sikka on 11 March and at Visakhapatnam between 11–13 March, potentially disrupting bunkering activities during this period.

Middle East

“The situation in some UAE ports and ports close to the Strait of Hormuz remains slightly tense, which may cause some operational sensitivity,” a Middle East-based trader said.

In the UAE, authorities at Fujairah and Khor Fakkan have not issued any formal alerts so far. However, navigational warnings have been circulated following reports of intermittent GPS spoofing and signal jamming in offshore areas near Fujairah. These disruptions can lead to inaccurate positioning, irregular vessel movements and potentially misleading navigational data. Mariners have therefore been advised to treat the area as high risk.

Operations at the Fujairah Oil Tanker Terminal remain suspended until further notice. Meanwhile, bunker deliveries at the anchorages of Fujairah and Khor Fakkan are continuing without interruption, according to shipping agency Inchcape Shipping.

Despite this, bunker activity in Fujairah and Khor Fakkan has been affected by uncertainty around loading operations. Several suppliers have halted deliveries as some terminals remain closed, while bunker prices in Fujairah have surged sharply with only a limited number of suppliers still issuing quotes, a source said.

Elsewhere in the UAE, terminal operations at Jebel Ali, Hamriya and Sharjah Port are proceeding normally. Petroleum ports in Ruwais and Abu Dhabi are also functioning as usual.

In Kuwait, Shuwaikh Port continues to operate under normal conditions, according to GAC Hot Port News.

Saudi Arabian ports have not issued any alerts or warnings so far. However, bunker availability is tight in Jeddah, particularly for VLSFO and LSMGO. Adverse weather is forecast to affect Jeddah on 11 March and Yanbu on 12 March, which could potentially disrupt bunkering activities at both ports.

In Qatar, vessel movements and port operations remain normal at Hamad, Doha and Al Ruwais. Activities are also ongoing at Mesaieed and Ras Laffan ports, although VLSFO and LSMGO supply is currently tight in Ras Laffan. Al Ruwais Port, however, is restricted to small craft only, including dhows and barges.

“The situation in Oman has eased and we are supplying at all ports,” an Oman-based trader said. LSMGO supply remains available on a prompt basis across most Omani ports, the source added.

Most ports in Oman are operating normally, including Port Sultan Qaboos, Muscat, Mina Al Fahal, Port of Sohar, Qalhat LNG Terminal – Sur, OMIFCO Terminal – Sur, Port of Salalah and Port of Duqm.

In Bahrain, vessel movements have gradually resumed, although operations remain limited due to a shortage of pilots. The Suez Canal and all Egyptian ports continue to operate fully. Port conditions in Jordan remain stable, while ports in Pakistan, Cyprus and Lebanon are functioning normally. Israeli ports—including Eilat, Ashkelon, Ashdod, Hedera and Haifa—are operating at full capacity, Inchcape Shipping added.

By Tuhin Roy

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