Typhoon Hagupit suspends Zhoushan bunkering

Port operations have been suspended at Zhoushan port in China's Zhejiang province, after Typhoon Hagupit made landfall this morning, a Zhoushan government official said. The suspension is expected to last until 7-8 August, based on the current weather forecast.

Over 25,000t of marine fuels traded on a spot basis for delivery during 4-8 August will be delayed, based on estimates of trade volumes reported to Argus. Argus assesses the Zhoushan bunker index based on reported spot trades on a volume-weighted average basis, as well as at Shanghai port.

The delays do not appear to have affected spot trades for delivery in mid-August, with about 4,000t of combined spot traded volumes reported on 3 August in Zhoushan, including very-low sulphur fuel oil (VLSFO), marine gasoil and high-sulphur fuel oil. Shanghai recorded nearly 2,500t of VLSFO spot trades yesterday.

Prices of bunker fuels are also unaffected. The VLSFO volume-weighted average price fell by just by $1/t to $338.90/t in Zhoushan yesterday from 31 July while the Shanghai VLSFO price also fell by about $1/t to $346.60/t.

Zhoushan is China's main bunkering centre, which the government has been pushing as an alternative to the regional hub of Singapore.

By Nick Mai