East of Suez Fuel Availability Outlook 21 July

Availability tight across all grades in Singapore

Bad weather keeps bunkering halted in Zhoushan’s outer anchorages

Availability good across several Sri Lankan ports

IMAGE: Various cargo ships waiting to load and unload in the harbour at the port of Singapore. Getty Images

Singapore and Malaysia

VLSFO availability in Singapore remains tight, with recommended lead times at 14-19 days, largely unchanged from last week. Tightness persists because Singapore's fuel oil inventories have yet to recover to pre-conflict levels, while cargo arrivals remain constrained due to renewed US-Iran hostilities disrupting traffic through the Strait of Hormuz.

According to the latest Enterprise Singapore data, fuel oil stocks dropped below 18 million bbls in June from more than 23 million bbls in March. Inventories have also remained below 20 million bbls so far this month.

The lower inventory levels have tightened VLSFO supply, lending support to the benchmark price.

HSFO availability also remains tight, with recommended lead times of 9-13 days, compared with 10-12 days a week ago. LSMGO supply has tightened further, with lead times widening to 9-11 days from 6-9 days last week.

In Malaysia's Port Klang, bunker fuel availability remains tight. VLSFO supply is constrained for prompt stems, while LSMGO availability also remains limited. HSFO continues to face supply pressure.

East Asia

Despite softer demand, VLSFO availability in Zhoushan has tightened, with recommended lead times extending to around 12 days, up from about eight days previously. A source attributed the longer waiting times to limited refinery supply.

Lead times for both LSMGO and HSFO have also lengthened to around seven days, compared with about five days last week.

Meanwhile, bunkering operations at Zhoushan's outer Tiaozhoumen and Xiazhimen anchorages have remained suspended since 7 July due to adverse weather. Most suppliers are still uncertain about when normal bunker operations across the port will fully resume, the source added.

Bunker fuel availability across northern China remains mixed. Suppliers in Dalian and Qingdao have ample stocks of VLSFO and LSMGO, although HSFO availability in Qingdao remains limited. In Tianjin, all major bunker grades continue to face supply constraints, while VLSFO and HSFO remain tight in Shanghai. LSMGO availability in Shanghai, however, is relatively stable.

Supply constraints also persist across several southern Chinese ports. Both VLSFO and LSMGO remain tight in Fuzhou. Xiamen has sufficient VLSFO availability but tighter LSMGO supply, while both grades remain constrained in Yangpu and Guangzhou.

Hong Kong's bunker market remains steady, with recommended lead times for all major bunker grades holding at around seven days, broadly unchanged from recent weeks.

In Taiwan, state-owned bunker supplier CPC Corporation (CPC) has temporarily stopped accepting new LSMGO nominations for deliveries at Kaohsiung due to a tight barge schedule.

According to a source, LSMGO deliveries have been suspended since last Friday and will remain on hold until CPC clears its backlog of pending orders.

The disruption has also affected VLSFO supply in Kaohsiung, with recommended lead times increasing to 4-5 days from around three days last week.

Elsewhere in Taiwan, bunker availability remains stable. Recommended lead times for both VLSFO and LSMGO are around two days in Hualien, while Keelung and Taichung continue to record lead times of about three days, broadly unchanged from the previous week.

Bunker fuel availability has tightened across South Korea's southern ports, including Busan, Ulsan, Masan, Onsan, Yeosu and Kwangyang. Recommended lead times for both VLSFO and LSMGO have increased to 9-16 days, from 4-12 days last week. HSFO has also tightened, with lead times extending to 9-16 days from 4-12 days a week earlier.

In South Korea's western ports—including Incheon, Daesan, Dangjin, Pyeongtaek and Taean—recommended lead times for VLSFO and LSMGO remain at 9-16 days, largely unchanged from last week. HSFO availability has tightened, with lead times rising to 9-16 days from 4-12 days previously.

Weather-related disruptions are expected to affect bunker operations in Daesan on 21 and 23 July.

Supply remains constrained at major Japanese ports, including Tokyo, Chiba, Kawasaki, Kashima, Nagoya, Yokkaichi, Osaka, Kobe, Mizushima and Oita. VLSFO and LSMGO continue to be offered by only a limited number of suppliers, while HSFO is relatively more accessible, with recommended lead times of around 7-10 days.

In contrast, Indonesia's bunker market remains comfortably supplied. VLSFO availability is stable across Jakarta, Surabaya, Balikpapan and Cigading, where suppliers are generally recommending lead times of around 2-3 days.

Oceania

VLSFO availability remains stable in Western Australia, with suppliers in Kwinana and Fremantle generally recommending lead times of around seven days. Bunkering at both ports is handled by a single supplier, with all deliveries carried out by barge.

Supply conditions are more mixed along Australia's east coast. In Port Kembla, VLSFO can be supplied via truck or pipeline, while suppliers in Sydney maintain adequate stocks of both VLSFO and LSMGO. HSFO remains comparatively tighter in Sydney, where suppliers typically require around seven days of advance notice.

In Queensland, VLSFO and LSMGO availability remains good in Brisbane and Gladstone, with recommended lead times also holding at around seven days.

Further south, suppliers continue to maintain healthy VLSFO inventories in Melbourne and Geelong. However, bunker deliveries at both ports depend on a single barge, keeping lead times at about one week. HSFO supply has tightened further in both Melbourne and Brisbane.

Meanwhile, one supplier is offering all major bunker grades in Brisbane, Sydney and Melbourne with lead times of around five days. In Dampier, bunker deliveries continue to be conducted through truck-assisted pipeline operations, making advance planning and berth confirmation particularly important, according to a market source.

Across the Tasman Sea, bunker fuel availability remains broadly unchanged in New Zealand. VLSFO is readily available in Tauranga and Auckland, where suppliers recommend lead times of around four days. At Marsden Point, both VLSFO and LSMGO can be supplied directly to vessels through pipeline infrastructure.

Weather continues to present operational risks across New Zealand. Bunker deliveries remain particularly susceptible to disruption in Wellington and ports across the South Island, where adverse weather can periodically interrupt supply operations.

South Asia

Recommended lead times for VLSFO and LSMGO at India's west coast ports of Kandla, Sikka, Pipavav, Dahej and Hazira remain at 3–4 days, according to a source.

The monsoon is expected to disrupt bunker operations at several Indian ports over the coming days, with weather-related delays likely to affect delivery schedules. Bunkering is forecast to face disruptions at Kandla and Sikka between 20–24 July, while rough sea conditions could hamper operations in Mumbai, Cochin and Visakhapatnam during the same period.

In Sri Lanka, bunker market conditions remain stable, with adequate stocks of all major bunker fuel grades in Colombo and Hambantota. One supplier is recommending lead times of around seven days, almost unchanged from last week.

Adverse weather could also intermittently disrupt bunker operations in Colombo between 20–24 July and in Trincomalee between 20–23 July, potentially delaying bunker deliveries.

Middle East

Despite escalating US-Iran hostilities in the Strait of Hormuz, bunker fuel availability has improved in Fujairah. VLSFO and LSMGO supply has eased, with several suppliers now able to accommodate prompt delivery requests. HSFO availability, however, has tightened and is largely being offered only on a firm enquiry basis.

Similar supply conditions are being reported at the neighbouring UAE bunker hub of Khor Fakkan.

In Jeddah, VLSFO and LSMGO availability remains relatively stable.

In Qatar's Ras Laffan, VLSFO and LSMGO supply continues to be constrained.

At Port Suez in Egypt, HSFO inventories remain tight, while VLSFO stocks are close to depletion.

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

By Tuhin Roy

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