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:

• HSFO supply improves in the ARA
• Prompt VLSFO availability tight in Piraeus
• LSMGO is tight in Durban and Richards Bay

Northwest Europe

VLSFO availability has tightened in the ARA hub, a trader said. Lead times of 5-7 days are recommended to ensure full coverage from all suppliers, up from 3-5 days in the previous week.

HSFO supply has shown signs of improvement in the ARA hub in recent days. Some suppliers are now able to offer the grade with lead times of less than three days. However, for smooth coverage, lead times of 5-7 days are still recommended.

The ARA’s independently held fuel oil stocks have averaged 14% higher so far this month, than in October, according to Insights Global data. The stocks have grown to three-month highs despite indications of lower imports.

According to cargo tracker Vortexa, the region has imported 225,000 b/d of fuel oil so far this month, down from 243,000 b/d imported in October.

The UK has emerged as the ARA's biggest fuel oil import source this month, accounting for 22% of the region's total imports. Fuel oil imports from Turkey accounted for 21% of the total imports, followed by Lithuania (10%). ARA has also sourced its fuel oil imports from Poland (6%) and Germany (5%).

Meanwhile, the ARA hub’s independent gasoil inventories — which include gasoil and heating oil — have declined by 4% this month.

HSFO availability remains tight for delivery off Skaw, partly because of fewer suppliers offering the grade. Lead times of 7-10 days are recommended for the grade.

LSMGO availability is very tight in the Norwegian port of Oslo. The grade is typically delivered by trucks and lead times of 5-7 days are recommended there, a trader says.

In the German port of Hamburg, lead times of 3-5 days are recommended for all three bunker grades

Mediterranean

Prompt HSFO supply is available in Gibraltar, with some suppliers having adequate product available to cater to prompt enquiries. Lead times of up to three days are recommended for HSFO, down from 4-6 days in the previous week.

Lead times of 3-5 days are recommended for VLSFO and LSMGO deliveries in Gibraltar, a trader says.

VLSFO and LSMGO availability is good in the Portuguese ports of Lisbon and Sines, according to a source.

Due to rough weather conditions off Malta, bunker supply was only available in the more sheltered bunkering area four out of the six bunkering areas on Wednesday, port agent MH Bland said. The forecast for persistent rough weather over the coming days and through the weekend suggests that bunker operations could remain disrupted, potentially extending delivery lead times further ahead.

Some suppliers are able to supply small quantities of bunkers for prompt delivery dates off Malta as and when weather permits. Meanwhile, one supplier can offer the earliest delivery by 5 December for all three grades, a trader says.

VLSFO availability is tight in the Greek port of Piraeus. The earliest delivery date with a supplier for the grade is 5 December.

Adverse weather conditions have also impacted bunkering in the Turkish port of Istanbul. Strong winds and heavy swells have prevailed in the region since the end of last week, a source said.

Turkey’s Ceyhan and Iskenderun Bay areas have also been experiencing bad weather since Saturday. This has disrupted smooth bunker deliveries there, according to the source.

Africa

LSMGO supply remains tight in the South African ports of Richards Bay and Durban. Recommended lead times for the grade are more than ten days at both ports, according to a trader.

VLSFO availability is relatively better and lead times of up to 5-7 days are recommended in both Richards Bay and Durban.

Offshore bunkering in Algoa Bay has remained suspended for nearly three months now. The deliveries came to a standstill after the South African Revenue Service (SARS) detained bunker barges over import duty disputes in September

Negotiations between offshore bunker suppliers and authorities have reached an advanced stage and a decision may be announced in December, a port agent told ENGINE. 

Meanwhile, bunker supply is available in the adjacent Port Elizabeth, where only one supplier is delivering stems, the port agent added.

Bunker demand has spiked in Mozambique's ports of Nacala and Maputo in recent months because of the ongoing bunkering crisis in Algoa Bay. One supplier has recently received a new VLSFO cargo at Nacala, which could ease supply pressure and help cater to increased demand.

“The arrival of a new VLSFO cargo at Nacala has helped ease supply pressure and reduce lead times for booking stems,” the supplier said.

Availability is good for all three bunker grades in Nacala. Meanwhile, VLSFO availability is tight in Maputo with one supplier able to supply the grade from 7 December. LSMGO availability is normal in the port.

By Manjula Nair

Photo credit and source: ENGINE
Published: 30 November, 2023

Lloyd’s Register (LR) Maritime Decarbonisation Hub and Environmental Defense Fund (EDF), in collaboration with Arup, on Tuesday (28 November) introduced the Sustainable First Movers Initiative Identification Tool, a system to help shipping stakeholders align investment decisions that support the maritime energy transition away from fossil fuels.

The tool, which is presented in a preliminary findings report – The Potential of Ports in Developing Sustainable First Movers Initiatives – scores a port’s potential to produce and bunker electrofuels while delivering local environmental and community benefits in alignment with the global temperature target of 1.5 degrees Celsius set by the Paris Agreement.

“Ports can play an important role in kickstarting shipping’s decarbonisation process even before global policies are established,” said Marie Cabbia Hubatova, Director, Global Shipping at Environmental Defense Fund.

“By considering the impact sustainable first mover initiatives can have on port-side communities, climate, environment and economies, resources can be better directed to locations where these initiatives will make the biggest difference.”

With close to two billion people living near coastal zones globally, the role of, and impacts on local port communities must be intentionally considered as the sector decarbonises globally. Ports can play a crucial role in ensuring shipping decarbonisation efforts are done in a way that has positive impacts on port communities.

The preliminary phase of the Sustainable First Movers Initiative Identification Tool analyses 108 ports in the Indo-Pacific region according to five criteria including land suitability, air quality, renewable energy surplus, economic resilience and ship traffic.

It is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering. The combined criteria and scenario evaluation determines which ports have the greatest potential (high potential) for sustainable first mover initiatives to lead to significant emissions reductions and positive impacts in nearby communities, such as improved air quality and economic resilience.

“The transition to clean energy supply for shipping can be achieved only if stakeholders act together. Identifying potential port locations is the first step in this process,” said Dr Carlo Raucci, Consultant at Lloyd’s Register Maritime Decarbonisation Hub. “This approach sets the base for a regional sustainable transition that considers the impacts on port-side communities and the need to avoid regions in the Global South lagging behind.”

Regions in the Global South are fundamental in driving the decarbonisation of shipping. To make this transition effective, the rate at which different countries adopt and scale up electrofuels must be proportional to the difference in capital resources globally to avoid additional costs being passed on to local communities. Sustainable first mover initiatives can play an important role in making this happen by ensuring the sector’s decarbonisation is inclusive of all regions and by engaging all shipping stakeholders, including port-side communities.

“There’s a huge opportunity for early adopter shipping decarbonisation initiatives to unlock benefits for people and planet – shaping the way for a more equitable transition in the 2030s,” said Mark Button, Associate, Arup. “Our collective approach shows that taking a holistic view of shipping traffic, fuel production potential and port communities could help prioritise action at ports with the greatest near-term potential.”

The tool can be customised according to stakeholders’ needs and goals and is dependent on scenario desirability. The next phase of this work will include the selection and detailed assessment of 10 ports to help better understand local needs and maximise the value offered by sustainable first mover initiatives. 

LR and EDF carried out a joint study on ammonia as shipping fuel, and LR and Arup have collaborated on The Resilience Shift study focused on fuel demand for early adopters in green corridors, ports, and energy systems, amongst many other projects.

Photo credit: Lloyd’s Register
Published: 29 November, 2023

The following article regarding regional bunker fuel availability outlook for the East of Suez region has been provided by online marine fuels procurement platform ENGINE for publication on Singapore bunkering publication Manifold Times:

• VLSFO and HSFO availability tight in Singapore
• Tight VLSFO supply in Zhoushan
• Bunker fuels availability normal in Tokyo

Singapore

VLSFO availability remains very tight in Singapore. Recommended lead times for the grade range up to 15-18 days. Some suppliers can deliver the grade with shorter lead times, but these offers are limited and often priced higher, a source says.

Product loading delays persist in oil terminals, which have held up bunker delivery vessels from loading. Terminals have been jammed by several tankers loading and discharging cargoes. Some argue that loading delays have eased a bit, however, loading remains jammed for near dates.

At least six bunker suppliers in Singapore are currently facing tight delivery schedules, a source claims.

Prompt HSFO supply also remains under pressure there. Lead times of 11-13 days are recommended for the grade. LSMGO availability is relatively better than other grades in Singapore, with lead times of 4-6 days recommended for smaller stems and around seven days for larger stems, a source says.

According to Enterprise Singapore, the port’s residual fuel oil stocks have averaged 2% lower so far this month than across October. Fuel oil imports have declined by 30% this month, while exports have dropped by 6% so far this month.

The port’s middle distillate stocks, however, have surged 15% on the month.

China, East Asia and Oceania

A trader says VLSFO availability is still tight in Zhoushan as several suppliers are running low on stocks. Most suppliers have refrained from providing lead times and deliveries of the grade remain subject to enquiries. HSFO availability, on the other hand, has improved in the port, with lead times reducing from 5-7 days last week to 3-5 days now. LSMGO remains in good supply, with prompt dates available.

In northern China, VLSFO and LSMGO supply is good in Dalian. In Tianjin, VLSFO availability is good, but LSMGO and HSFO supply is tight, with deliveries subject to enquiries. In Qingdao, prompt VLSFO and LSMGO availability is limited, and HSFO availability is also subject to enquiry.

Prompt availability of VLSFO and LSMGO is tight in the southern Chinese ports of Shanghai and Xiamen. HSFO availability is under pressure in Shanghai, as it has been in recent weeks.

Prompt bunker fuel availability has shown signs of tightness in Hong Kong, a trader says. Wind gusts of up to 20 knots are forecast on Tuesday and Wednesday, which could impact bunkering in the port.

Lead times for HSFO deliveries varied widely between 5-13 days in South Korean ports. VLSFO and LSMGO lead times have gone up from four days in the previous week to 5-6 days now.

Availability of all grades is normal in the Japanese port of Tokyo. Lead times of seven days are recommended for deliveries there.

Adverse weather conditions are forecast in the Philippine port of Subic Bay between 28-30 November, and in the Thai ports of Koh Sichang and Leam Chabang between 2-3 December.

South Asia

Prompt VLSFO and HSFO availability is tight in the Sri Lankan port of Colombo. The earliest delivery date with a supplier for HSFO is as far away as 10 December, a trader says. LSMGO availability is relatively better for prompt dates.

Middle East

All grades remain under pressure in Fujairah. The supply pressure is due to product loading delays at oil terminals, compounded by bunker backlogs caused by weather disruption over the weekend, a source explains. Strong bunker demand has also contributed to tight supply there.

Lead times of around 7-10 days are recommended for all grades in the Middle Eastern bunker hub – virtually unchanged from last week. Meanwhile, lead times of around five days are recommended for all grades at nearby Khor Fakkan port.

By Nithin Chandran

Photo credit and source: ENGINE
Published: 29 November, 2023