Asia/Pacific News
Storage Tight, Floating Storage Up as Singapore Readies for Sulfur Rule Change
Increasing signs of preparedness ahead of the International Maritime Organisation rule change on the sulfur content of bunker fuel are being seen in Singapore.
Market sources cited by Reuters in the southeast Asian port, which is the world biggest bunkering hub, say demand for storage is pushing up leasing rates.
Storage tank rates for crude and fuel oil have risen nearly 20% since the start of the year to about S$5.00 to S$5.50 ($3.68 to $4.05) per cubic meter for a lease period of six to 12 months, according to the report.
"Since April, the demand for low sulfur fuel oil has just gone up and our tanks are fully leased now," an unnamed source with a Singapore-based storage operator was quoted as saying.
The new market dynamic has also seen a regional rise in the number of tankers being used as floating storage, the report said.
