East of Suez Fuel Availability Outlook 11 Aug

Availability is tight across grades in Singapore

Zhoushan anchorages remain suspended since Thursday due to Typhoon Dolphin

Bunker demand picks up in several South Korean ports

IMAGE: Dense rows of vessels on the waters of Singapore. Getty Images


Singapore and Malaysia

VLSFO availability in Singapore remains tight, with suppliers now recommending lead times of 12–21 days, compared with 12–24 days last week. Supply continues to face pressure as the port’s fuel oil inventories have yet to recover to pre-conflict levels, while cargo inflows remain disrupted by fragile US-Iran peace talks, which continue to affect traffic through the Strait of Hormuz.

Enterprise Singapore data shows that Singapore’s fuel oil inventories fell from more than 23 million bbls in March, to below 18 million bbls in June. Although stocks recovered slightly to about 19 million bbls in July, they remain below 20 million bbls.

Several suppliers in Singapore are also grappling with tight delivery schedules, further contributing to the grade’s limited availability.

HSFO availability remains tight, with recommended lead times of 12–21 days, compared with 10–24 days a week earlier. LSMGO lead times have also increased to 4–12 days, from 2–11 days last week.

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

East Asia

VLSFO availability in Zhoushan remains under pressure, despite muted bunker demand. Suppliers are now recommending lead times of around 11 days, almost unchanged from last week. Lead times for both LSMGO and HSFO have also increased to about 11 days, from around 10 days previously.

The tighter availability is primarily due to the prolonged suspension of bunkering operations in Zhoushan following Typhoon Dolphin. Bunkering at the port’s outer and inner anchorages has been suspended since Thursday because of adverse weather conditions brought by the typhoon, according to a source.

Typhoon Dolphin weakened after making two landfalls along the coast of Zhejiang province on Sunday, according to China’s National Meteorological Centre (NMC). It moved deeper inland to the central Chinese province of Hubei on Tuesday.

However, suppliers remain uncertain about when bunkering operations in Zhoushan will fully resume, the source added.

Across northern China, bunker fuel supply conditions continue to differ by port. Dalian and Qingdao have adequate VLSFO and LSMGO availability, although HSFO remains tight in Qingdao. Supply of all three major bunker grades is constrained in Tianjin, while Shanghai continues to face limited VLSFO and HSFO availability. LSMGO supply in Shanghai remains relatively steady.

Supply pressures persist across southern China as well. Fuzhou continues to see tight availability of both VLSFO and LSMGO. Xiamen has sufficient VLSFO supply, but prompt LSMGO stems remain harder to secure. Both VLSFO and LSMGO availability are also constrained in Yangpu and Guangzhou.

Hong Kong's bunker market remains 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 and Keelung, while deliveries at Kaohsiung and Taichung require around three days.

Availability in Keelung has also been affected by vessel maintenance issues. One bunker barge suffered a major technical failure, while another was 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 later this week, according to a Taiwan-based trader.

South Korea's southern ports, including Busan, Ulsan, Masan, Onsan, Yeosu and Kwangyang, have seen bunker availability improve despite demand seeing an uptick. Recommended lead times for VLSFO, LSMGO and HSFO stand at 4-6 days, from 3-7 days last week.

The same pattern is evident at the country's western ports—Incheon, Daesan, Dangjin, Pyeongtaek and Taean—where lead times for all three fuel grades stand at 4-6 days, from 3-7 days a week ago.

Potential weather-related disruptions could impact Busan, Ulsan and Yeosu between 11-13 August, and Daesan during 11-12 and 15-16 August.

Supply conditions are tightening significantly across Japan. For VLSFO and HSFO, all refiners have implemented ex-wharf restrictions leading to a nationwide supply crunch.

Tight supply conditions continue across Japan's major bunkering hubs, including Tokyo, Chiba, Kawasaki, Nagoya, Yokkaichi, Osaka, Kobe, Mizushima and Oita, where only a limited number of suppliers are offering VLSFO, LSMGO and HSFO. Kashima is also experiencing constrained availability of VLSFO and HSFO.

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

Oceania

VLSFO availability remains stable across Western Australia, with suppliers in Kwinana and Fremantle continuing to recommend lead times of around seven days. Both ports depend on a single supplier, and all bunker deliveries are carried out by barge.

Supply conditions are more mixed along Australia's east coast. In Port Kembla, VLSFO can be supplied by either truck or pipeline, while suppliers in Sydney maintain adequate stocks of both VLSFO and LSMGO. HSFO availability is relatively tighter in Sydney, with suppliers generally advising lead times of about seven days.

In Queensland, VLSFO and LSMGO remain readily available in Brisbane and Gladstone, where lead times continue to hover around one week.

Further south, Melbourne and Geelong also have comfortable VLSFO inventories. However, both ports rely on a single bunker barge, keeping recommended lead times at approximately seven days. HSFO supply 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 to Dampier Cargo Wharf (DCW) remain suspended until around the end of September due to ongoing repair work. Limited truck-based deliveries are still possible, subject to 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 fuel availability in New Zealand is broadly unchanged. VLSFO remains 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 continues to pose the biggest operational risk in New Zealand. Bunker deliveries in Wellington and ports across the South Island remain particularly susceptible to delays during periods of adverse weather.

South Asia

VLSFO and HSFO availability is tight in India’s Visakhapatnam, Kakinada, Gangavaram, Krishnapatnam, Paradip, Haldia, Chennai, Tuticorin and New Mangalore. A supplier in Cochin can offer both VLSFO and LSMGO on firm enquiry, a source said.

Adverse weather is set to disrupt bunker operations at several Indian ports over the coming days. Sikka is forecast to experience operational disruptions between 12-15 August, while Mumbai, Visakhapatnam and Cochin from 11-15 August.

In Sri Lanka, bunker availability remains tight at both Colombo and Hambantota, with at least one supplier advising lead times of around 10 days, almost unchanged from last week.

Weather conditions are also expected to intermittently disrupt bunker operations in Colombo between 11-15 August and Trincomalee between 11-14 August, increasing the risk of delays to bunker deliveries.

Middle East

Renewed tensions between the US and Iran around the Strait of Hormuz have continued to strain bunker fuel supply in Fujairah. Availability of VLSFO and LSMGO remains tight, largely unchanged from last week, with only a limited number of suppliers able to offer LSMGO. HSFO supply also remains tight.

Supply conditions are more comfortable at the nearby UAE hub of Khor Fakkan, where both VLSFO and HSFO remain readily available. Demand for bunkers has nevertheless picked up at both Fujairah and Khor Fakkan, despite the latest regional escalation, a Middle East-based source said.

Saudi Arabia’s Jeddah, VLSFO and LSMGO supply remains steady, despite stronger demand. However, rough weather could interrupt bunker operations in Jeddah between 11-12 and on 15 August, and in Yanbu between 11-15 August.

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

"Middle Eastern ports remain generally operational, with LSMGO available across Oman… subject to port, quantity, vessel schedule and supplier confirmation," an Oman-based trader said.

Across Oman's key ports—including Salalah, Muscat, Duqm and Sohar—LSMGO availability remains stable, with recommended lead times of 2–3 days depending on the port and nomination. High waves forecast in Salalah between 11-15 August could, however, temporarily disrupt bunkering operations, according to a source.

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

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

By Tuhin Roy

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