East of Suez Fuel Availability Outlook 23 June

HSFO and LSMGO availability tight in Port Klang

Bunker demand low in Zhoushan

Bunker supply tight in several Japanese ports

IMAGE: Night scene of Zhoushan, close to the dock on Putuo island. Getty Images

Singapore and Malaysia

VLSFO supply in Singapore remains under pressure, with recommended lead times varying significantly among suppliers. While some can deliver in around nine days, others are advising lead times of more than three weeks. This compares with 10–14 days recommended a week ago.

Suppliers are recommending lead times of 5–13 days for HSFO, compared to 7–10 days last week. Lead times for LSMGO remain largely stable at 6–10 days.

In Singapore, residual fuel oil stocks have averaged 27% lower so far this month compared with May, slipping below 15 million bbls and reaching multi-year lows, according to the latest data from Enterprise Singapore.

The stock drawdown has come amid a sharp contraction in net fuel oil imports. Net imports have fallen by a sharp 55% so far in June. Fuel oil imports declined by 1.36 million bbls, while exports increased by 83,000 bbls.

Middle distillate inventories have also tightened significantly. Stocks have averaged 7.57 million bbls so far this month, down 17% from previous levels and hovering around multi-year lows.

Elsewhere, bunker fuel availability in Malaysia’s Port Klang remains uneven. VLSFO supply is generally adequate, particularly for smaller prompt stems. However, LSMGO availability remains constrained due to limited supply, while HSFO continues to face supply pressure, leaving both grades relatively tight.

East Asia

Prompt VLSFO availability in Zhoushan remains constrained despite muted demand. Suppliers are currently recommending lead times of around seven days, compared with 7–10 days last week. LSMGO and HSFO are more readily available, with lead times of around three days, improving from 3–5 days a week earlier.

Bunker fuel availability across northern China remains mixed. Suppliers in Dalian and Qingdao have sufficient stocks of VLSFO and LSMGO, although HSFO availability in Qingdao continues to be limited. All major bunker grades are under supply pressure in Tianjin, while Shanghai is experiencing tight availability of VLSFO and HSFO. LSMGO supply in Shanghai remains comparatively stable.

In southern China, supply constraints persist across several ports. Both VLSFO and LSMGO remain tight in Fuzhou, while Xiamen has adequate VLSFO availability but faces tighter LSMGO supplies. Similar restrictions are reported in Yangpu and Guangzhou, where availability of both grades remains constrained.

Hong Kong’s bunker market continues to operate under stable conditions, with lead times for all major bunker grades holding at around seven days, broadly unchanged in recent weeks.

At Taiwan’s key ports of Hualien, Keelung, Taichung and Kaohsiung, bunker fuel availability remains steady. Recommended lead times for VLSFO and LSMGO are about two days in Hualien and Keelung, while deliveries in Taichung and Kaohsiung require around 2–3 days. These lead times are largely unchanged from the previous week.

South Korea’s bunker market has seen demand strengthen following the recent decline in Brent crude futures, which has contributed to lower bunker prices, according to a local trader. In Busan, VLSFO prices have fallen by more than $150/mt over the past week to around $664/mt.

Across the country's southern ports—including Busan, Ulsan, Masan, Onsan, Yeosu and Kwangyang—recommended lead times for VLSFO and LSMGO are now 4–9 days, compared with 2–12 days last week. HSFO also requires 4–9 days, versus around five days a week earlier.

Supply conditions have improved at western ports such as Incheon, Daesan, Dangjin, Pyeongtaek and Taean. Lead times for VLSFO and LSMGO have increased to 4–9 days from 2–5 days last week. By contrast, HSFO availability has improved, with lead times of 4–9 days after being available only on enquiry a week ago.

Weather-related disruptions remain a concern across South Korea. Delays are forecast at Busan and Ulsan on 23–25 June and 27 June, at Yeosu on 23–24 June, and at Daesan on 24 June.

In Japan, market participants note that although the reopening of the Strait of Hormuz could ease supply concerns, it may take 2–3 months for supply chains and regional refinery operations to fully normalise. Monthly bunker supply volumes in Japan remain heavily constrained by refinery limitations.

Most local suppliers have already sold out their June allocations, limiting prompt availability. Small stems of 200–300 mt may still be available on a case-by-case basis, according to a Japan-based trader.

At major Japanese ports including Tokyo, Chiba, Kawasaki, Osaka, Kobe, Mizushima and Oita, VLSFO and LSMGO availability remains tight, with only a limited number of suppliers able to offer these grades. HSFO is relatively more accessible, with lead times of around 5–7 days.

In Kashima, VLSFO and LSMGO remain restricted and are available only through berth deliveries, although access to some berths is currently prohibited.

Meanwhile, supplies of VLSFO, LSMGO and HSFO remain extremely tight in Nagoya and Yokkaichi due to periodic maintenance at the Idemitsu refinery. Similar supply constraints continue to affect all three bunker grades in Tokuyama.

Oceania

In Western Australia, VLSFO supply remains accessible at Kwinana and Fremantle, with suppliers generally recommending lead times of around seven days. Bunker operations at both ports are currently supported by a single supplier and carried out exclusively via barge deliveries.

Supply conditions along Australia’s east coast vary by port. In New South Wales, Port Kembla can accommodate VLSFO deliveries by truck or pipeline, while Sydney continues to maintain sufficient stocks of both VLSFO and LSMGO. HSFO availability in Sydney remains tighter, with suppliers typically requesting about seven days of advance notice.

In Queensland, VLSFO and LSMGO supplies remain available in Brisbane and Gladstone, where lead times are also around seven days.

Further south, Melbourne and Geelong continue to hold comfortable VLSFO inventories. However, bunker deliveries at both ports rely on a single barge, resulting in lead times of approximately one week.

HSFO availability is becoming increasingly constrained in both Melbourne and Brisbane, placing additional pressure on supply of the grade.

One supplier is currently offering all bunker grades in Brisbane, Sydney and Melbourne with lead times of around five days. In Dampier, bunker operations continue to depend on truck-assisted pipeline deliveries, making advance scheduling and berth confirmation particularly important, according to a market source.

Across the Tasman Sea, bunker fuel availability in New Zealand remains largely stable. VLSFO is readily available in Tauranga and Auckland, where suppliers are recommending lead times of about four days. At Marsden Point, both VLSFO and LSMGO can be delivered directly to vessels through pipeline infrastructure.

Weather remains a key operational risk across New Zealand. Bunker deliveries are particularly susceptible to disruptions in Wellington and ports across the South Island, where adverse weather conditions can periodically impact supply operations.

South Asia

VLSFO and LSMGO availability remains steady at India's west coast ports of Kandla, Sikka, Pipavav and Hazira, where suppliers are generally recommending lead times of 3–4 days. In southern India, some suppliers in Chennai and Ennore are able to offer all major bunker grades with similar lead times of 3–4 days, according to a source.

However, the onset of the monsoon is expected to create operational challenges across several Indian ports in the days ahead, potentially disrupting bunker delivery schedules. Weather-related delays are forecast at Kandla and Sikka on 24–25 June, while rough sea conditions could affect bunker operations at Cochin and Visakhapatnam between 23–27 June, and at Mumbai on 24 June.

In Sri Lanka, bunker operations at Colombo and Trincomalee may also experience intermittent weather-related disruptions between 23–27 June, with the potential to impact delivery schedules.

Middle East

Bunker fuel availability has tightened sharply at the UAE’s key bunkering hubs of Fujairah and Khor Fakkan, where only a limited number of suppliers remain active in the market. Many suppliers are responding selectively to enquiries and are issuing quotations only against firm requests, according to a Middle East-based trader.

The supply crunch is most severe for VLSFO and LSMGO in Fujairah, where available stocks are confined to a small group of suppliers. HSFO availability is relatively less constrained, although only two suppliers are currently offering the grade.

Khor Fakkan is facing similar challenges across all major bunker grades, with suppliers assessing enquiries on a case-by-case basis before deciding whether to provide offers.

The tightening market is largely being driven by a shortage of incoming cargoes, leaving bunker barges without sufficient replenishment volumes. Although replacement cargoes were expected to arrive over the past two weeks, there is still no confirmed schedule for their arrival, the trader said.

Barges that previously loaded fuel continue to supply the market using existing inventories, but a significant share of these volumes has already been committed. Suppliers have cautioned that bunker fuel stocks in Fujairah and Khor Fakkan could effectively be exhausted within days if the anticipated cargoes fail to arrive and the remaining barge inventories become fully allocated.

Even if fresh cargoes reach the ports, bunker prices are expected to remain elevated, the trader added.

Supply pressures are also building in Dubai, where suppliers are increasingly restricting quotations to firm enquiries rather than offering fuel openly to the market.

Elsewhere in the UAE, operations at Jebel Ali, Hamriyah and Sharjah remain unaffected, according to Inchcape Shipping. Ports in Ras Al Khaimah are also functioning normally, although the RAK Ports Authority has continued to apply a marine risk surcharge on vessels calling at its ports, harbours and anchorages since March.

In Kuwait, port operations at Shuaiba and Shuwaikh continue without disruption despite ongoing geopolitical tensions in the region.

No official operational advisories have been issued by Saudi Arabian ports. In Jeddah, VLSFO and LSMGO availability remains relatively stable. However, adverse weather conditions could disrupt bunker operations in Jeddah between 23–27 June and in Yanbu between 23–28 June.

In Qatar, 24-hour maritime navigation for all vessel types was reinstated at the beginning of May, according to Inchcape Shipping. Nevertheless, both VLSFO and LSMGO remain in tight supply at Ras Laffan.

“The situation in the region has improved, and vessel movements through the Strait have resumed. Most ports across the Middle East remain operational, although some schedules are still being adjusted as vessels reposition,” an Oman-based trader said.

“For LSMGO, availability is generally stable, and lead times are gradually improving. We expect supply conditions and pricing to continue normalizing over the coming days,” the trader added.

Oman continues to offer strong prompt availability of LSMGO. One supplier is currently recommending lead times of just 2–3 days at major ports including Duqm, Muscat, Sohar and Salalah. However, high wave activity forecast in Salalah between 23–27 June could temporarily affect bunkering operations in the port, according to a source.

In Egypt, port operations remain normal. At Port Suez, HSFO inventories are tight, while VLSFO stocks are nearing depletion.

Further south, both VLSFO and LSMGO remain difficult to secure in Djibouti. Meanwhile, port and bunker operations across Jordan, Iraq, Cyprus, Pakistan and Lebanon continue to function normally, according to shipping agency Inchcape Shipping.

By Tuhin Roy

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