26JUL2019 - NEWS - Bunker shortages spreading across Asian ports

Several ports across Asia are coping with limited availability of high-sulphur fuel oil (HSFO) for bunkers, with price spreads relative to Singapore rising to record highs. Fewer fuel oil arbitrage arrivals into Singapore during June and July caused the cargo market to strengthen to all-time highs, with delivered bunker premiums also sustaining record highs around $30/t since the second week of July. The physical tightness in Singapore led shipowners to bunker in neighbouring ports instead.The increase in fuel demand at several bunker ports across Asia, as well as the reduction of loadings from Singapore, is seeing several ports experiencing shortages as well.
The tightness first spread to Hong Kong and China, as these ports are dependent on Singapore for most of their supplies. "Spot markets there are out of control", according to one buyer.Premiums for HSFO in Hong Kong versus Singapore averaged $6/t during the first half of the year but rose to an all-time high of $62/t on 23 July, according to Argus data. The market in Hong Kong is especially tight, with no availability until after the first week of August.