Barge loading delays keep Singapore’s market tight, and suppliers are working to clear backlogs after a typhoon in Zhoushan last week.

Singapore’s bunker market has tightened significantly this week. A recent Covid-19 outbreak at Universal Terminal on Jurong island has capped manpower and delayed bunker barges from loading product. The terminal is currently short-staffed, with the number of barges queued up increasing.

As a result, there is less VLSFO available in the market and the fuel grade has become more difficult to source for prompt dates. Lead times have gone up from eight days to 10-11 days for VLSFO.

HSFO380 is particularly tight in the bunkering hub with lead times stretching to 12 days ahead, while LSMGO is more readily available with 5-7 days ahead.

Meanwhile, Singapore’s residual fuel oil stocks have added another 4% to 21.55 million bbls – their highest levels since early September, Enterprise Singapore data showed last week.

HSFO380 supply is tight in Fujairah as well, but with lead times standing at eight days ahead, which is four days shorter than in Singapore. VLSFO and LSMGO are slightly more readily available in Fujairah, with lead times steady on the week at six days for each grade.

Fujairah’s fuel oil stocks dropped by 13% to 7.083 million bbls on the week to 11 October, data from the Fujairah Oil Industry Zone (FOIZ) and S&P Global Platts showed last week.

Bunker suppliers have been trying to clear Zhoushan’s backlog for the past week, as the port remains congested after it was hit by a typhoon more than a week ago. Vessels have been waiting as long as four days in the Chinese port, while congestion is expected to clear by the end of the week, sources say.
Source: ENGINE (https://engine.online/)