Loadings at the Universal Terminal in Singapore remain severely constrained, a month after a cluster of Covid-19 cases emerged there, according to several local market participants.
A new Covid-19 cluster emerged in Jurong Island around mid-October, causing delays to barge loading of bunker fuel which have persisted until now.
Bunker suppliers are increasingly worried that they will only have limited volumes to sell, as their barges are unable to load both high sulphur fuel oil (HSFO) and very low sulphur fuel oil (VLSFO).
"I am pushing my HSFO availabilities to 19 November, as we're simultaneously facing cargo operations delays, some quality issues and a huge load list of barges queuing", said one local trader.
Barges of several customers were heard waiting for a berth for over 24 hours.
The logistical issues at the terminal are made worse by a sudden increase in demand because of the midweek Diwali holiday.
"The market is definitely tight on the front end, with a solid number of enquiries seen over the past week and all those vessels now coming in by 10 November", remarked another local trader.
As a result, the delivered premium of VLSFO, or the premium of delivered fuel to the cargo price, has been on the rise over the past few days. Argus last assessed the premium at $15/t on 3 November, up from an average of $8/t over the past two months. The premium was last seen at these elevated levels in January this year.
