Business

ENGINE: Americas Bunker Fuel Availability Outlook

Availability tight across Houston and off Gulf Coast; suppliers in GOLA struggle to clear backlogs; VLSFO supply tight in Montevideo.

Published

12 months ago

December 16, 2022

Admin

The following article regarding bunker fuel availability in the Americas region has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

Availability tight across Houston and off Gulf Coast
Suppliers in GOLA struggle to clear backlogs
VLSFO supply tight in Montevideo

North America

All grades remain tight for prompt dates in the Houston area and bunker locations off the Gulf Coast. Lead times of 7-9 days are generally recommended in Houston to ensure full coverage from suppliers, up from last week’s 5-7 days.

Bunker suppliers in Houston and off the Gulf Coast are closely monitoring potential knock-on impacts from the recent Keystone Pipeline disruption. The stretch of the Keystone Pipeline that carries crude from Alberta, Canada crude to the storage hub in Cushing and the US Gulf Coast has remained offline since last Wednesday, after its operator TC Energy detected an oil leak of 14,000 bbls.

On Wednesday, TC Energy restarted a minor segment of the Keystone Pipeline running to Wood River in Illinois, US, after a week of closure, but the operator is not yet certain when it will fully restart flows to the Gulf Coast.

Some suppliers in Houston and off the Gulf Coast area are rushing to get hold of any product they can as they fear less fuel to be produced as a result of the ongoing Keystone Pipeline disruption, a source says.

VLSFO and LSMGO availability is tight in Bolivar Roads. One major supplier requires at least eight days of lead time.

VLSFO and LSMGO availability is tight in the Galveston Offshore Lightering Area (GOLA). Most of the suppliers have yet to confirm their earliest delivery dates. Recent bad weather led to a significant rise in bunker backlogs.

One supplier in GOLA is able to offer on a subject to the enquiry basis, but has simultaneously warned that actual delivery prospects can be unpredictable.

Availability for all grades is tight for prompt dates in New York. Recommended lead times for VLSFO and LSMGO are about 5-7 days, slightly shorter than Houston’s.

All grades remain tight for prompt dates in the West Coast ports of Long Beach and Los Angeles. A longer lead time of at least 10-15 days is generally recommended to ensure full coverage from all suppliers. Securing HSFO is even more difficult and lead times can be unpredictable as the grade is supplied by fewer suppliers, a source says.

Overall bunker demand in Mexico’s Manzanillo has slowed coming into December, a source says. HSFO, VLSFO and LSMGO availability remains normal, and five days of lead times are recommended.

Sources doubt whether the recent tightness in the Gulf Coast area will drive demand to Mexican ports.

Caribbean and Latin America

All grades are tight for prompt dates in Panama’s Balboa and Cristobal. Supply is said to be tighter in Cristobal, primarily due to fewer suppliers. One supplier in Cristobal can deliver VLSFO and LSMGO stems with eight days of lead time, while others are hesitant to put up offers, a source says.

LSMGO availability is super tight off Trinidad. One supplier is running low on LSMGO stocks and only expects replenishment cargo volumes to arrive by early next month, sources say.

VLSFO and LSMGO availability is normal in Colombia’s Cartagena and Santa Marta. Recommended lead time for both grades is about three days.

Availability is tight for prompt dates at Argentina’s Zona Comun anchorage. One supplier requires at least seven days of lead days. Another can supply very prompt (0-3 days) as it has sufficient product loaded on its barge. Others require at least 5-8 days of lead time.

VLSFO availability is tight in Uruguay’s Montevideo. One major supplier is unable to confirm delivery dates as it has tight barge availability, sources say.

By Nithin Chandran

Photo credit and source: ENGINE
Published: 16 December, 2022

Vessel Arrest

Malaysia: MMEA detains tanker for illegal anchoring in East Johor waters

Panama-registered vessel was operated by 17 crew members, aged between 21 to 58 years, from Pakistan, India and Bangladesh.

Published

5 hours ago

November 29, 2023

Admin

Malaysia: MMEA detains tanker for illegal anchoring in East Johor waters

The Malaysian Maritime Enforcement Agency (MMEA) on Tuesday (28 November) said a Panama-registered tanker has been detained for illegally anchoring in East Johor waters on 27 November.

MMEA Tanjung Sedili Zone acting director Maritime Cmdr Mohd Najib Sam said the tanker was detained by a patrol boat at 11am at 15.8 nautical miles northeast of Tanjung Penawar.

The captain of the vessel failed to produce any documents that permission had been obtained to anchor in Malaysian waters.

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The vessel was operated by 17 crew members, aged between 21 to 58 years, from Pakistan, India and Bangladesh.

The case will be investigated under Section 491B(1)(L) of the Merchant Shipping Ordinance 1952 for anchoring without permission. If found guilty, individuals may be fined not exceeding MYR 100,000 or face an imprisonment term of not more than two years, or both.

Manifold Times previously reported law firm Oon & Bazul LLP sharing on steps shipowners should keep in mind before anchoring and conducting STS operations in Malaysian waters to avoid detention.

Photo credit: Malaysian Maritime Enforcement Agency
Published: 29 November, 2023

Alternative Fuels

DNV paper outlines bunkering of alternative marine fuels for boxships

Third edition of its paper series focuses on LNG, methanol and ammonia as alternative bunker fuel options for containerships; explores bunkering aspects for LNG and methanol.

Published

5 hours ago

November 29, 2023

Admin

DNV paper outlines bunkering of alternative marine fuels for boxships

Classification society DNV recently released the third edition of its paper series Alternative fuels for containerships, focused on LNG, methanol and ammonia as alternative bunker fuel options for containerships.

In its updated paper series, DNV examined the different alternative marine fuel options and provided an overview of the most important technical and commercial considerations for the containership sector.

It explored the bunkering technology for LNG, bunkering infrastructure for methanol, and availability and infrastructure of ammonia.

Building on the foundation laid in the second edition, which focused on the most important aspects of methanol as a fuel, this latest third edition delves deeper – exploring the technical intricacies and commercial considerations associated with adopting methanol as an alternative fuel for containerships.

Furthermore, it provides an overview of crucial aspects related to ammonia and discusses its potential as an alternative fuel for containerships.

Amongst others, the new edition of the paper looks at the following aspects:

Technical design considerations for methanol
Commercial implications of adopting methanol as an alternative fuel
Ammonia's potential as an alternative fuel
Availability, infrastructure and ship fuel technology for ammonia
Major updates based on the latest IMO GHG strategy decisions at the MEPC 80 meeting

Note: The third edition of DNV’s full paper titled Alternative Fuels for Containerships can be found here.

Photo credit: DNV
Published: 29 November, 2023

Alternative Fuels

EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Tool 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.

Published

5 hours ago

November 29, 2023

Admin

EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

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