East of Suez Fuel Availability Outlook 3 Nov

VLSFO, HSFO supply is tight in Zhoushan

Bunker demand picks up across South Korean ports

Availability good across several Sri Lankan ports

IMAGE: A beautiful sunset over the port of Djibouti on the Red sea. Getty Images

Singapore and Malaysia

Bunker fuel availability remains tight in Singapore, with delayed cargo arrivals and congestion at loading terminals continuing to constrain supply, a source said.

VLSFO lead times are currently around 13-15 days. Last week, suppliers recommended lead times ranging from around 13 days at the earliest to more than three weeks. HSFO lead times have also settled at 13-15 days, compared with a range of around 13 days to as long as three weeks previously. LSMGO lead times have eased slightly to 8-10 days from 9-11 days last week.

In Malaysia, bunker supply remains constrained across several fuel grades at Port Klang. Prompt VLSFO availability is particularly tight, while LSMGO supplies remain limited and HSFO availability continues to face pressure. 

East Asia

VLSFO and HSFO availability remains tight in Zhoushan, despite subdued demand. Lead times for both grades have increased to around 15 days, from 12 days last week. Low inventories and adverse weather have restricted supply, while customs formalities have further delayed delivery schedules, a source said.

In contrast, LSMGO availability in Zhoushan is good, with lead times falling to two days from four days a week earlier.

Supply conditions remain uneven across other Chinese ports. Dalian and Qingdao have sufficient VLSFO and LSMGO stocks, although HSFO availability remains tight in Qingdao. Tianjin is facing shortages across all three major fuel grades, while supplies of VLSFO and HSFO remain limited in Shanghai. LSMGO availability in Shanghai is relatively stable.

Supply constraints also persist in southern China. Suppliers in Fuzhou, Xiamen, Yangpu and Guangzhou are reporting shortages of VLSFO and LSMGO.

Hong Kong's bunker market remains stable, with suppliers recommending lead times of around seven days for the major fuel grades.

In Taiwan, VLSFO and LSMGO deliveries can be arranged within two days at Keelung, Hualien, Kaohsiung and Taichung, largely unchanged from the previous week.

Bunker demand has picked up across South Korea as declining Brent futures have brought benchmark prices lower. Busan's VLSFO price has dropped by around $80/mt since the end of October to approximately $1,390/mt, according to a South Korean trader.

At southern ports, including Busan, Ulsan, Masan, Onsan, Yeosu and Kwangyang, lead times for all major fuel grades are currently around 4-9 days, compared with 5-8 days a week earlier. Availability has also improved at western ports, including Incheon, Daesan, Dangjin, Pyeongtaek and Taean. Lead times for VLSFO, LSMGO and HSFO at these ports have fallen to 4-9 days from 5-8 days previously.

However, adverse weather could disrupt bunker operations at several South Korean ports in the coming days. Busan and Ulsan may experience interruptions on 6-7 November, while operations at Yeosu and Daesan could be affected between 5 and 7 November.

VLSFO and HSFO availability remains severely constrained at several Japanese ports, including Tokyo, Chiba and Kawasaki, where suppliers recommend lead times of around 9-13 days. Supplies of both grades are also tight in Nagoya, Yokkaichi, Osaka, Kobe, Mizushima, Tokuyama and Oita. Most offers at these ports are subject to enquiry.

Kashima is also experiencing tight availability of VLSFO and HSFO.

Oceania 

Bunker fuel availability remains stable in Western Australia, with VLSFO readily available at Kwinana and Fremantle. Suppliers at both ports recommend lead times of around seven days. Each port has only one supplier, and all bunker deliveries are carried out by barge.

Supply conditions remain mixed along Australia's east coast. Port Kembla has normal VLSFO availability, with deliveries possible by truck or pipeline. Sydney has sufficient stocks of VLSFO and LSMGO, although HSFO availability is tighter, with suppliers generally requiring around seven days' notice.

Brisbane and Gladstone have ample VLSFO and LSMGO supplies, with lead times of approximately one week. Meanwhile, VLSFO availability has improved in Melbourne and Geelong. HSFO availability, however, has tightened further in Melbourne and Brisbane.

In Western Australia, pipeline bunkering at Dampier Cargo Wharf (DCW) is expected to remain suspended for another three weeks. Deliveries are currently possible only by truck, an Australia-based source said.

The approaching cyclone season could introduce further risks to bunker operations across Australia, a source said. Running from November to April, the season could disrupt fuel availability at ports nationwide.

New Zealand's bunker market remains broadly stable, with VLSFO readily available at Tauranga and Auckland. Suppliers at both ports recommend lead times of around four days. At Marsden Point, vessels can receive VLSFO and LSMGO directly through the pipeline.

Adverse weather remains the primary operational risk in New Zealand, particularly in Wellington and ports across the South Island, where disruptions to marine operations could delay bunker deliveries.

In Papua New Guinea, LSMGO availability remains tight at Rabaul, Madang and Lae. 

South Asia

Suppliers recommend bunker lead times of around 3-4 days for all three major fuel grades at several key Indian ports, including Mumbai, Cochin, Paradip, Visakhapatnam, Kakinada, Haldia, Chennai, Tuticorin and New Mangalore, according to an India-based source.

High waves are forecast at Visakhapatnam port from 3 November, potentially disrupting bunker operations and delaying deliveries.

In Sri Lanka, lead times for all major fuel grades remain around three days at both Colombo and Hambantota.

Middle East

VLSFO availability in Fujairah has improved despite continued disruption to vessel traffic through the Strait of Hormuz amid US-Iran tensions, a regional source said. However, supplies of LSMGO and HSFO remain limited.

In Saudi Arabia, bunker demand has eased slightly, while fuel availability and delivery schedules continue to vary across ports. Jeddah generally has stable LSMGO supplies, although VLSFO availability remains tight.

Bunker activity at Omani ports has remained steady, with demand and supply conditions largely unchanged from the previous month. Vessel activity is particularly high at Duqm, which could affect delivery schedules.

LSMGO deliveries can generally be arranged within 2-3 days at Omani ports, including Salalah, Sohar, Duqm and Muscat. Actual lead times depend on the port, required quantity and terminal approvals, an Oman-based trader said.

“Supply at Qatar’s Ras Laffan is restricted, and Egypt’s Port Suez is also facing low bunker inventories,” a Middle East-based source said.

Djibouti, meanwhile, continues to face limited availability across the major fuel grades.

By Tuhin Roy

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