East China port tank utilization has hit 92% — a year-to-date high. This is driven directly by the +1.26% surge in fuel oil futures to ¥5,058/t and concentrated vessel arrivals: 78% of fuel oil import berthing windows overlapped across Ningbo, Zhoushan, and Yangshan ports in early October (industry consensus). Above 90% utilization triggers rigid dispatch constraints — bonded tank release approvals now take T+3 days, and ad-hoc stacking fees have jumped 18% w/w to ¥128/t·day, with priority given to long-term contract holders. Meanwhile, asphalt futures fell 1.54% to ¥5,319/t, confirming weak demand coexisting with forced inventory build: refinery offloading slowed, yet import vessels kept arriving, pushing asphalt tank occupancy in East China to 89% — just 3 pts below fuel oil. Demurrage has spiked to $18,500/day (+7.0% w/w), as average anchorage delay stretched from 2.1 to 3.7 days (Shanghai Shipping Exchange). This breaches SNSUC’s arbitrage breakeven threshold: for a 50,000-dwt MR tanker moving fuel oil from Singapore to Shanghai, total logistics cost — including CIF freight ($32.5/t), demurrage ($18,500/day × 1.2 days), and bonded storage (¥85/t × 3 days) — now stands at ¥372/t, exceeding the current Shanghai–Singapore fuel oil price differential of only ¥315/t. The collapse in economics is already visible: three fuel oil re-export orders scheduled for berthing on Oct 12 were postponed by buyers today, rescheduled post-Oct 22. For SNSUC clients, spot fuel oil re-export into domestic end-users now requires simultaneous demurrage hedging — we recommend BunkerEX’s SGX fuel oil-linked demurrage options, with strike set at $17,000/day. A Brent break below $101.5/bbl or East China tank utilization falling to ≤85% would ease pressure rapidly. Conversely, if USD/CNY breaches 6.73, RMB-denominated storage costs will further compress arbitrage margins.