Market participants said Typhoon Hato caused a significant backlog in the system as bunkering operations were halted from Tuesday evening and through all of Wednesday due to strong wind conditions and rough seas. Sources said that terminal berths would be congested and that barge schedules will be tight over the next few days as the market struggles to catch up with orders that had to be delayed due to the halt in bunkering operations. "The backlog and tight barge schedule will last for a few days," a source said, adding that for those companies that had a tight schedule to begin with, the typhoon "only made it worse". As of Thursday morning, earliest bunker fuel delivery dates from some suppliers were said to be around August 28-29, though some also said that they were able to do it earlier. "I think things should be back to normal in the next few days, maybe around August 27 or 28," a trader said. According to the Hong Kong Observatory, Typhoon Hato battered Hong Kong with hurricane force winds of more than 118 kph on Wednesday. It raised the Hurricane Signal No. 10 which is the observatory's highest storm warning signal. The typhoon eventually moved away from Hong Kong and made landfall in southern China around noon on Wednesday. Hong Kong bunker fuel traders had said that they did not expect the storm to have a significant impact on bunker fuel prices as they would likely adopt a wait-and-see stance and assess how much of a backlog there was to clear before taking on new bunker orders.

For the original version including any supplementary images or video, visit https://www.platts.com/latest-news/shipping/singapore/hong-kong-bunkering-activity-resumes-as-typhoon-27866681

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