The bunker market in Singapore is experiencing supply issues while facing average demand. The delivery time for VLSFO (Very Low Sulfur Fuel Oil) has increased to 11 to 18 days, compared to last week when it was 10 to 15 days. This worsening situation is due to declining inventories and delays in shipments caused by ongoing tensions in the Middle East.
Fuel Supply Situation in Other Asian Ports
In Klang, Malaysia, bunker supply is limited in several grades. VLSFO is particularly scarce, and the inventory of LSMGO is also limited. Meanwhile, in Zhoushan, China, the bunker market remains under pressure due to weak demand, with delivery times for VLSFO and LSMGO reduced to about 11 days. At the same time, the delivery time for HSFO has also decreased to 11 days.
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In other ports in China, supply conditions vary. In Dalian and Qingdao, the inventories of VLSFO and LSMGO are sufficient, but in Qingdao, HSFO is facing shortages. In Tianjin, all three fuel grades are experiencing shortages, and in Shanghai, the supply of VLSFO and HSFO is limited. However, LSMGO in Shanghai has remained relatively stable.
Impact of Weather Conditions and Other Challenges
The supply situation in southern China is also under pressure due to reports of shortages in the cities of Fuzhou, Xiamen, Yangpu, and Guangzhou. In Hong Kong, the bunker market is stable, and suppliers recommend a delivery time of about 7 days for the main fuel grades.
In Taiwan, deliveries of VLSFO and LSMGO in Keelung, Hualien, and Taichung are available and have not changed significantly from last week. Meanwhile, the state-owned CPC Corporation has announced that supply capacity at the Kaohsiung port has decreased from October 12 to 17. The proposed delivery time for VLSFO and LSMGO at this port is about 3 days.
In South Korea, the bunker market is also facing difficult supply conditions despite average demand. In southern ports including Busan, Ulsan, and Masan, delivery times for all main grades have increased to 7 to 10 days. A similar situation is observed in western ports such as Incheon, Daejeon, and Pyeongtaek.
Weather conditions may disrupt fuel supply operations in the coming days. In Busan and Ulsan, disruptions may occur on October 13 to 15 and 18 to 19. Facilities in Yeosu and Daejeon may also be affected.
In Japan, bunker fuel supply is impacted by long-term refinery maintenance and prioritization of domestic energy production. Supply capacity is currently fully allocated to regular schedules, and offers for HSFO and VLSFO are nearly unavailable.
However, VLSFO and HSFO are available in several Japanese ports including Tokyo, Chiba, and Osaka. The inventory of these two fuel grades has been severely limited in October, and there is also a shortage of VLSFO and HSFO in Kashima.
In Indonesia, the fuel supply situation is generally healthy, with suppliers in Jakarta, Surabaya, and Balikpapan recommending a delivery time of 2 to 3 days for VLSFO. In Western Australia, the supply situation is stable, and VLSFO is readily available at the ports of Kwinana and Fremantle.
As the storm season approaches in Australia, there may be increased risks for fuel supply operations in various ports. This season, which lasts from November to April, could disrupt fuel supply at ports nationwide.
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