|
Getting your Trinity Audio player ready...
|
East of Suez Bunker Supply Tightens Amid Hormuz Tensions
Bunker fuel availability across the East of Suez region remains under pressure as renewed tensions around the Strait of Hormuz, weather disruptions and uneven regional inventories continue to affect fuel supply at many of the world's busiest ports.
According to the latest ENGINE East of Suez Fuel Availability Outlook, suppliers in several major bunkering hubs are recommending longer lead times for fuel deliveries, while adverse weather and tighter inventories are creating additional operational challenges for shipowners and charterers.
Singapore Continues to Face Supply Pressure
Singapore remains one of the most constrained bunkering hubs in the region.
Suppliers are currently recommending lead times of 12–24 days for Very Low Sulphur Fuel Oil (VLSFO), compared with 16–20 days a week earlier. High Sulphur Fuel Oil (HSFO) availability also remains tight, with recommended lead times widening to 10–24 days, while Low Sulphur Marine Gas Oil (LSMGO) requires 2–11 days.
Fuel oil inventories have yet to recover to levels seen before the recent Middle East conflict. Data from Enterprise Singapore show inventories falling from more than 23 million barrels in March to below 18 million barrels in June. Although stocks recovered slightly during July, they remained below 19 million barrels.
Across nearby Port Klang in Malaysia, bunker availability also remains constrained. Prompt VLSFO supply is limited, LSMGO remains under pressure and HSFO availability continues to be restricted.
East Asian Ports Face Mixed Supply Conditions
Supply conditions vary considerably across East Asia.
Zhoushan continues to experience pressure despite relatively subdued bunker demand, with recommended lead times increasing to around 12 days for VLSFO and approximately 10 days for both LSMGO and HSFO.
Typhoon Dolphin is also creating operational uncertainty. Weather forecasts indicate that bunker operations around Zhoushan could face temporary disruption if the storm affects local anchorages.
Elsewhere in China, bunker availability differs from port to port. Dalian and Qingdao continue to report relatively comfortable VLSFO and LSMGO supply, although HSFO remains tighter in Qingdao. Supply constraints persist in Tianjin, while Shanghai continues to face limited availability of VLSFO and HSFO.
Southern Chinese ports including Fuzhou, Yangpu and Guangzhou are also reporting tighter bunker availability, particularly for VLSFO and LSMGO.
Weather Influences Regional Operations
Typhoon Dolphin is affecting bunker planning across several East Asian markets.
In Taiwan, bunker availability has generally improved after temporary operational disruptions caused by equipment maintenance. However, traders expect the approaching typhoon to create fresh delays at several ports later this week.
South Korea has experienced the opposite trend. Weaker bunker demand has improved availability across major ports, including Busan, Ulsan, Yeosu and Kwangyang, with recommended lead times shortening to 3–7 days.
Many suppliers nevertheless continue to confirm bunker deliveries subject to weather conditions as strong winds and rough seas remain a risk.
Japan, meanwhile, is facing one of the tightest bunker supply environments in the region.
Following renewed tensions involving Iran, one refiner has imposed temporary ex-wharf restrictions on VLSFO and HSFO until 15–20 August, significantly reducing prompt availability. Earliest delivery windows around Tokyo Bay have moved to approximately 20–22 August, while earlier deliveries are reportedly available only at substantial premiums.
Australia and New Zealand Remain Comparatively Stable
Compared with many Asian ports, bunker availability across Australia remains relatively stable.
Western Australian ports continue to report consistent VLSFO availability, while Sydney, Brisbane, Melbourne and Geelong generally maintain adequate inventories despite some tighter HSFO supply.
Operational constraints remain at Dampier, where pipeline-based bunker deliveries continue to be suspended because of repair work. Limited truck deliveries remain available depending on vessel size.
Across New Zealand, bunker availability has changed little, although weather remains the principal operational risk. Ports including Wellington and several South Island terminals continue to experience occasional weather-related delays.
Monsoon Conditions Affect South Asia
Seasonal weather continues to disrupt bunker operations across parts of South Asia.
Forecasts indicate that monsoon conditions could delay bunker deliveries at Indian ports including Kandla, Sikka, Mumbai, Cochin and Visakhapatnam during the first half of August.
Sri Lanka has also seen tighter bunker availability at Colombo and Hambantota, where at least one supplier is recommending lead times of approximately 10 days.
Weather-related interruptions remain possible at both Colombo and Trincomalee.
Middle East Supply Remains Uneven
The latest regional tensions continue to shape bunker availability across the Middle East.
Fujairah remains under pressure, with limited availability of both VLSFO and LSMGO. HSFO supply has improved modestly compared with previous weeks, although demand has strengthened following renewed geopolitical developments.
Nearby Khor Fakkan continues to offer more comfortable supply conditions for both VLSFO and HSFO.
Elsewhere across the UAE, ports including Jebel Ali, Hamriyah, Dibba and Sharjah continue operating normally. Ship-to-ship transfers have also resumed at Dubai waters anchorage, although each operation continues to be assessed individually.
Saudi Arabian ports remain fully operational despite stronger bunker demand. Weather could temporarily affect bunker operations in both Jeddah and Yanbu during the coming days.
Operations also remain normal in Kuwait, Qatar and Oman, although Ras Laffan continues to experience tighter bunker availability.
Egypt's ports remain operational, but bunker inventories at Port Suez are critically low across all three conventional fuel grades. Djibouti is also reporting continued supply constraints.
Voyage Planning Becomes Increasingly Important
The latest regional outlook highlights how bunker procurement has become increasingly dependent on both geopolitical developments and local operational conditions.
Longer lead times, changing weather patterns and uneven regional inventories mean shipowners and charterers are placing greater emphasis on advance fuel planning before vessels arrive at major bunkering hubs.
Although most ports across the East of Suez region remain fully operational, bunker availability varies significantly between locations. Careful scheduling and early fuel nominations are therefore becoming increasingly important for maintaining voyage efficiency as regional market conditions continue to evolve.
