Typhoon Shuts Zhoushan Bunker Anchorages as Asian Lead Times Stretch
VLSFO lead times at Zhoushan widen to about 10 days with no restart timetable given
Typhoon-driven disruption has halted bunkering at two outer anchorages in China's Zhoushan hub, tightening fuel availability across Asia at the same time as supply constraints emerge in Singapore.
Bunkering at Zhoushan's Tiaozhoumen and Xiazhimen outer anchorages has again been suspended because of rough weather, following earlier disruption from Typhoon Dolphin. No timetable has been given for operations to resume.
VLSFO lead times at Zhoushan have widened to about 10 days from seven to 10 days a week earlier, with LSMGO and HSFO also requiring about 10 days.
China's National Meteorological Center maintained an orange typhoon warning at 1800 on 25 August, forecasting strong winds across the East China Sea as Typhoon Saudel moved towards the Zhejiang-Fujian coast. The Zhejiang Maritime Safety Administration activated a Level II typhoon emergency response at 2000 the same day, tightening controls around anchorages and other high-risk areas and requiring suspension, closure, transfer and evacuation measures where necessary.
The disruption has coincided with stronger bunker demand in South Korea. Lead times at Busan, Ulsan, Masan, Onsan, Yeosu and Kwangyang have stretched to four to 11 days from four to six days a week earlier. Incheon, Daesan, Dangjin, Pyeongtaek and Taean are also quoting four to 11 days, against about five days previously. Further weather-related interruptions were expected at some South Korean ports between 26 and 28 August.
Singapore faces a separate tightening in VLSFO availability. Lead times there have widened to seven to 19 days from seven to 13 days a week earlier, amid reduced supplier availability and shortages of blending components. LSMGO lead times have risen to four to nine days from two to eight days, while HSFO remains at six to 12 days.
Inventories tell the same story. Singapore's residual fuel oil stocks have averaged 3 percent below July levels so far in August and remained below 19m barrels. Average stocks stood at 18.41m barrels, down 560,000 barrels from July, while middle distillate inventories averaged 8.21m barrels, down 460,000 barrels.
Zhoushan VLSFO prices rose by $7 per tonne over the weekend, leaving the Chinese port at a $14-per-tonne premium to Singapore and a $34-per-tonne premium to Fujairah.
