East of Suez Fuel Availability Outlook 20 Oct

Availability of all grades tight in Singapore

Typhoon to impact bunkering in Zhoushan

VLSFO, LSMGO supply is tight in Fujairah

IMAGE: Aerial view of port of Djibouti on the Red Sea. Getty Images

Singapore and Malaysia

Availability of all bunker grades in Singapore is very tight, with suppliers recommending a notice of 12-15 days for VLSFO, a source said. HSFO availability is expected to remain tight until November.

Prompt availability for VLSFO and LSMGO is very tight at Malaysia’s Port Klang.

East Asia

Bunker operations at Zhoushan’s outer anchorages have been suspended since earlier today because of rough weather brought by Typhoon Champi, and disruptions are expected over the next few days, a source said. Availability remains strained despite low demand, with suppliers recommending lead times of around 11 days for VLSFO, LSMGO and HSFO.

Supply conditions remain mixed across other Chinese ports. Suppliers are recommending lead times of 4-5 days for VLSFO, LSMGO and HSFO in Qingdao, Tianjin and Xiamen. In Nansha, VLSFO and LSMGO are available for delivery within 4-5 days. Suppliers in Shanghai and Ningbo are recommending lead times of 11 days for all grades.

Bunker availability in Hong Kong is tight for VLSFO and HSFO and very tight for LSMGO, with suppliers recommending lead times of around seven days for good cover.

Supply conditions are mixed across South Korean ports.

Suppliers are recommending VLSFO lead times of 3-6 days at southern ports, including Busan, Ulsan, Masan, Onsan, Yeosu and Kwangyang. HSFO availability depends on stem size, delivery timing and other details of each enquiry.

At western ports, including Incheon, Daesan, Dangjin, Pyeongtaek and Taean, VLSFO lead times can stretch to 15 days, while HSFO supplies remain limited.

Japanese ports face severe supply constraints, as prolonged refinery maintenance and the prioritisation of domestic power generation limit the country’s bonded bunker fuel allocations. Available supply is fully committed to term nominations, leaving spot HSFO and VLSFO offers virtually unavailable. Occasional spot volumes emerge only when term cargoes are cancelled, according to a Japan-based trader.

Refineries have yet to announce clear supply policies for November onwards, the trader said.

VLSFO and HSFO availability is very tight at several Japanese ports, including Tokyo, Chiba, Kawasaki, Nagoya, Yokkaichi, Osaka, Kobe, Mizushima, Tokuyama and Oita. Kashima is also experiencing very tight availability of both grades.

Oceania

The approaching cyclone season, which runs from November to April, could disrupt bunker operations and fuel availability at ports in Australia, a source said.

Weather remains the key operational risk for New Zealand’s bunker market. Wellington and ports across the South Island are particularly vulnerable to delivery delays when adverse weather disrupts marine operations.

Middle East

VLSFO and LSMGO availability is tight in Fujairah, while it is stable in Saudi Arabia’s Jeddah.

VLSFO and LSMGO availability is tight in Oman’s Duqm, while HSFO supplies remain limited.

Supplies of both VLSFO and LSMGO remain restricted at Qatar’s Ras Laffan.

Further west, bunker inventories at Egypt’s Port Suez have fallen to critically low levels across all three major fuel grades. Djibouti is experiencing limited availability of VLSFO and LSMGO.

By Konica Bhatt

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