Access to bunker fuel in the ports of Singapore and Malaysia has faced severe shortages, with suppliers in these areas announcing delivery times for VLSFO (Very Low Sulfur Fuel Oil) between 12 to 15 days. In Malaysia, access to LSMGO (Low Sulfur Marine Gas Oil) and VLSFO is also severely limited.
Impact of Storm on Bunker Operations in East Asia
Bunker operations in the Zhoushan port area of China have been halted due to Storm Champi, and further disruptions are expected in the coming days. Despite low demand, access to bunker fuel in these areas remains difficult, with suppliers announcing delivery times of about 11 days for VLSFO and LSMGO. In other ports of China, supply conditions are mixed. In the ports of Qingdao, Tianjin, and Xiamen, suppliers have set delivery times between 4 to 5 days. In Nansha, VLSFO and LSMGO fuels are available for delivery within 4 to 5 days.
Bunker Situation in Japan and South Korea
Japanese ports are facing severe supply restrictions, as prolonged refinery maintenance and prioritization of domestic power generation have reduced bunker fuel allocation. Suppliers in the ports of Tokyo, Chiba, Kawasaki, Nagoya, Yukichi, Osaka, and Kobe have reported very long delivery times for VLSFO and HSFO (High Sulfur Fuel Oil). In these ports, fuel inventory has been severely limited, and only small amounts of HSFO and VLSFO will be available if long-term cargoes are canceled.
In South Korea, supply conditions in southern ports including Busan, Ulsan, and Masan are mixed, with VLSFO delivery times estimated between 3 to 6 days. In western Korean ports, VLSFO delivery times can reach 15 days, and HSFO supply also depends on various factors.
Additionally, in the Middle East, the supply of VLSFO and LSMGO in the port of Fujairah is facing restrictions, while in the port of Jeddah, Saudi Arabia, supply conditions are stable. In Oman, a similar situation exists in the port of Duqm, and in Qatar, the inventory of VLSFO and LSMGO fuels is limited. To the west, fuel inventory in the Suez port of Egypt has reached critical levels.
The storm season in the Pacific, which lasts from November to April, could negatively impact bunker operations and fuel supply in Australian ports. In New Zealand, weather conditions are the main risk for the bunker market, and the port of Wellington and other ports on the South Island are severely exposed to delivery delays.
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