Singapore and Malaysia are experiencing persistent tightness in the availability of Very Low Sulphur Fuel Oil (VLSFO), with recommended lead times for bunkering now ranging from 14 to 19 days. This situation largely mirrors the previous week's conditions.
The primary reasons for this sustained tightness include Singapore's fuel oil inventories not having fully recovered to pre-conflict levels. Additionally, cargo arrivals are being restricted by renewed hostilities between the US and Iran, which are disrupting maritime traffic through the critical Strait of Hormuz.
For freight forwarders and operations managers, this prolonged tightness in bunker fuel availability in a key global bunkering hub like Singapore could lead to increased operational costs and potential delays for vessels. Longer lead times for VLSFO procurement may necessitate earlier planning for bunkering stops, impacting vessel schedules and potentially leading to higher spot prices for fuel. Shippers may experience indirect cost increases passed on by carriers due to elevated bunker expenses.
