The following article regarding Europe and Africa bunker fuel availability has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

• Availability is normal in the ARA
• Gibraltar port closed due to bad weather
• Strong VLSFO demand in Mozambique

Northwest Europe

Availability is normal in Rotterdam and in the wider ARA hub, a trader said. Lead times of 4-6 days are recommended for HSFO and 4-5 days for VLSFO. LSMGO can be secured with short lead times of 2-4 days, traders said.

The ARA’s independently held fuel oil stocks have averaged 9% higher so far this month than across February, according to Insights Global data.

The ARA’s fuel oil stocks have grown to their bulkiest levels since April 2021. The region has imported 267,000 b/d of fuel oil so far this month, up from 256,000 b/d in February, according to data from cargo tracker Vortexa. The ARA has imported low-sulphur fuel oil (LSFO) and HSFO in a 43/57 ratio so far this month, compared to the 45/55 ratio in February.

Mexico has been the ARA’s biggest fuel oil import source so far this month, accounting for 25% of the region’s total imports. The UK has ranked second, accounting for 22% of the total imports, followed by Germany and Lithuania (11% each), and Poland (10%).

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have increased by 7% so far this month.

All grades remain in good supply in the German port of Hamburg. A trader recommends lead times of 3-5 days for all three bunker grades. 

LSMGO and VLSFO are mostly available for non-prompt delivery off Skaw. A trader recommends lead times of 5-7 days for both grades. HSFO supply tightness persists off Skaw, with supply only available for non-prompt delivery dates. Lead times of 7-10 days are advised for the high-sulphur grade. Weather-induced bunkering disruptions may occur off Skaw, with adverse weather forecast in the area for the rest of the week, a source said.

Mediterranean

Port operations and bunkering services have remained suspended in Gibraltar since Tuesday afternoon amid adverse weather conditions, a trader told ENGINE. Prompt availability has tightened in the port amid delays caused by bad weather conditions. Lead times of 5-7 days are recommended for all grades there, a trader said.

Suppliers are likely to face bunker backlogs once the port reopens, a source said.

The Gibraltar Port Authority has issued a gale-force wind warning effective until Wednesday night, with strong wind gusts of up to 38 knots. The weather forecast indicates continued rough conditions throughout the week, with intermittent wind gusts ranging between 22-47 knots predicted in the region.

In the nearby Ceuta port, the bunker barge SPABunker Cuarenta has halted operations since Tuesday because of bad weather, said shipping agent Jose Salama & Co. Wind gusts of 39 knots are forecast to hit Ceuta on Wednesday and will fluctuate between 21-50 knots for the rest of this week.

Availability is currently normal in the Canary Islands’ port of Las Palmas. Prompt supply is available in Las Palmas only if ships decide to receive bunkers at berth areas, as most suppliers are offering bunkers alongside or at the inner anchorage, a trader said. This has led to bunkering congestion, the trader added. The weather was extremely bad on Wednesday, with rough seas and heavy swells of more than three meters, a source said. This could hamper bunkering in the OPL area.

Other ports in the Mediterranean, such as Piraeus, off Malta and Istanbul, continue to experience poor demand, a trader said.

All grades remain in good supply in the Greek port of Piraeus, a trader said. Most suppliers can offer prompt delivery for all three grades in the port. The weather is forecast to remain calm over the week, which will facilitate smooth bunkering in the area.

Prompt availability of HSFO has improved off Malta, a source said. Availability is good for LSMGO and VLSFO as well, and prompt supply is available for both grades, the source added. Rough weather is forecast off Malta intermittently between Wednesday and next Monday, which could disrupt bunkering, a source said.

Turkey’s Istanbul has good availability for all three grades, with prompt delivery dates offered by suppliers, a trader said. Calm weather is forecast in Istanbul for most of this week, which could allow bunkering to run smoothly.

VLSFO and LSMGO availability is good in the Portuguese ports of Lisbon and Sines. But rough weather conditions have impacted deliveries there, a supplier said. Strong wind gusts of up to 37 knots are forecast in the region on Wednesday and Thursday.

Africa

Prompt availability continues to be extremely tight in the South African ports of Durban and Richards Bay.

LSMGO availability remains dry in Durban, with no signs of supply pressure easing over the coming days or weeks. Though VLSFO is available in both South African ports, the grade is very difficult to secure for prompt delivery dates. Most suppliers can offer VLSFO only for non-prompt delivery dates in Durban and Richards Bay, with lead times of 7-10 days generally recommended for the grade, a trader said.

Bad weather is forecast to hit Richards Bay and Durban over the weekend and possibly continue into Monday, further complicating deliveries.

Mozambique’s ports of Nacala and Maputo are witnessing high demand for VLSFO, a source said. Availability across all grades is currently good in both ports.

HSFO and LSMGO demand is also stable in Nacala, almost similar to last week. Similarly, in Maputo, LSMGO demand has been steady over the last few weeks, the source added

By Manjula Nair

Photo credit and source: ENGINE
Published: 28 March 2024