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ENGINE: East of Suez Bunker Fuel Availability Outlook

Suppliers in Fujairah struggle to offer prompt deliveries; Zhoushan demand remains sluggish amid tight availability; VLSFO availability under persistent pressure in Singapore.

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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:

  • Suppliers in Fujairah struggle to offer prompt deliveries
  • Zhoushan demand remains sluggish amid tight availability
  • VLSFO availability under persistent pressure in Singapore

 

Singapore

Bunker fuel availability remains tight across all grades in Singapore. VLSFO is particularly tight and prompt deliveries are difficult to find.

Prompt VLSFO deliveries in Singapore have recently been priced at least $100/mt higher than for dates further out, sources say. Recommended lead times are around 13-16 days for VLSFO and 9-12 days for HSFO, while LSMGO has a shorter 7-8 days.

The port has imported a lot more fuel oil in the past three weeks, and in the week to 8 June its imports rose to the highest point since mid-February this year.

According to cargo tracker Vortexa, the bulk of fuel oil imports have arrived from the UAE, Venezuela, Bahrain and Iran so far in June.

 

East Asia

VLSFO availability remains tight in Hong Kong and prompt stems are hard to book, sources say. LSMGO availability is slightly better and recommended lead times are up to seven days.

A supplier in Hong Kong expects VLSFO replenishment stocks to arrive by 25 June, a source says.

Bunker fuel availability is also tight in South Korean ports. A refinery that started offering some volumes to bunker ports at the beginning of this month has pulled back VLSFO offers again. This has sustained the pressure on other suppliers, sources say.

Recommended lead times for VLSFO and LSMGO are around 5-8 days in southern and western South Korean ports.

Bunker fuel demand in Zhoushan has been weak in the recent weeks amid tight availability and elevated prices. Tight VLSFO and HSFO availability in Zhoushan has forced some buyers to look for bunkers in 

Taiwanese and South Korean ports instead, sources say. 

Recommended lead times for VLSFO are around seven days in Zhoushan. LSMGO has been more readily available, while HSFO is tight as only some suppliers can offer the grade, sources say.

In the Philippines’ Manila, LSMGO availability is normal and recommended lead times are around three days. Demand has been sluggish in the past few weeks, a source says.

 

South Asia

Bunker fuel availability in India's Mumbai is normal. Prompt VLSFO and LSMGO stems are available with some suppliers in Mumbai, depending on weather conditions. The weather is expected to remain erratic over the coming weeks as the monsoon season intensifies. This could result in bunker delays or suspensions.

In Sri Lanka’s Colombo, availability is tight across all grades. Recommended lead times for VLSFO and LSMGO are around 5-7 days. Some suppliers are facing difficulties in sourcing cargoes from Fujairah amid tight availability there, a trader says.

VLSFO and LSMGO availability is slightly tight in Bangladesh’s Chittagong, a source says.

 

Middle East

All fuel grades are in tight availability for prompt dates in Fujairah. Some suppliers are fully booked until 29 June. A supplier can offer some prompt volumes, but these are priced at least $50-60/mt higher than for dates further out, sources say.

Recommended lead times for VLSFO and LSMGO are up to two weeks.

Suppliers in the Omani ports of Duqm and Sohar have normal availability of LSMGO. A supplier can offer prompt deliveries, a source says.

 

Photo credit: ENGINE
Published: 15 June, 2022

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Biofuel

GCMD concludes its final biofuel blend supply chain trial with Hapag-Lloyd

bp provided the B30 biofuel blend to the “TIHAMA”, a 19,870 TEU container vessel operated by Hapag-Lloyd in final trial; marks the end of a series of trials initiated in July 2022.

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GCMD concludes its final biofuel blend supply chain trial with Hapag-Lloyd

The Global Centre for Maritime Decarbonisation (GCMD) on Thursday (18 July) said it has successfully completed its final supply chain trial for biofuel blended with very low sulphur fuel oil (VLSFO). 

This marks the end of a series of trials initiated in July 2022 as part of a larger pilot to develop a framework to provide quality, quantity and GHG abatement assurances for drop-in fuels.

In this final trial, bp provided the B30 biofuel blend to the TIHAMA, a 19,870 twenty-foot equivalent unit (TEU) container vessel operated by Hapag-Lloyd.

The biofuel component used is certified to the International Sustainability & Carbon Certification (ISCC) standard – a multistakeholder certification scheme for biobased materials. The biofuel component comprised neat Fatty Acid Methyl Ester (FAME) produced from food waste.

Authentix, a tracer solutions provider, supplied and dosed the FAME with an organic-based tracer at the storage terminal outside the Netherlands. The dosed FAME was then transported to the Port of Rotterdam for blending with VLSFO to achieve a B30 blend, before the blend was bunkered onboard the TIHAMA.

Similar to previous trials, GCMD engaged fuel testing company Veritas Petroleum Services (VPS) to witness the operations at all stages – from biofuel cargo transfer to bunkering. VPS also collected and conducted extensive laboratory tests on samples of the biofuel and biofuel blend collected at pre-determined points along the supply chain to assess quality per Standards EN 14214 and ISO 8217.

With well-to-wake emissions of 13.74 gCO2e/MJ, the neat FAME presented a 85.4% emissions reduction compared to the emissions of the fossil marine fuel. The reduced emissions complies with the MEPC 80, which requires a minimum emissions reduction of 65% in order for biofuels to be classified as sustainable.

GCMD and Hapag-Lloyd determined that consumption of the 4,500 MT B30 blend of FAME and VLSFO resulted in 27.9% emissions reduction compared to sailing on VLSFO.

A newly developed tracer deployed with this supply chain

GCMD collaborated with Authentix to develop and deploy a new organic-based tracer to authenticate the origin and verify the amount of FAME present in the blend. The proprietary tracer blended homogeneously with FAME and was detected at expected concentrations at all sampling points along the supply chain.

This trial marks the first deployment of this tracer in a marine fuel supply chain. Previously, similar tracers were used to authenticate and quantify biofuels in road transport and LPG supply chains.

Development of a comprehensive biofuels assurance framework underway

With the completion of this trial, GCMD has deployed a diverse range of tracer technologies, including synthetic DNA and element-based tracers, in addition to the organic-based tracer used in this trial. The trials have also included the development of a chemical fingerprinting methodology and the evaluation of lock-and-seal and automatic identification systems (AIS) as additional solutions to ensure the integrity of the biofuels supply chain.

Learnings on tracer limitations and benefits will be incorporated into a framework that recommends appropriate use to ensure consistent and robust performance. This effort will complement existing ISCC by providing additional supply chain assurance through physical traceability.

The insights from these trials will be shared in a series of reports covering issues, such as traceability, biofuel degradation, supply chain optimisation and abatement costs. These findings will culminate in a comprehensive assurance framework to provide guidance on biofuels use, slated for release in the fourth quarter of 2024.

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 19 July 2024

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Ammonia

MPA, ITOCHU and partners sign MoU on ammonia-fuelled bulk carriers study

As a government agency, MPA,will review and provide their views to the designs of the ammonia-fuelled ships to ensure their safe operations, says ClassNK.

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RESIZED venti views

Classification society ClassNK on Thursday (18 July) said it signed a Memorandum of Understanding (MoU) with ITOCHU Corporation, Nihon Shipyard Co., Ltd., and Maritime and Port Authority of Singapore (MPA) regarding a joint study for the design and safety specifications of ammonia-fuelled ships which are under development by ITOCHU and partners.

“The discussion for a specification of ammonia-fuelled ships with a governmental body related to their operation is essential for a social implementation of ammonia-fuelled ships,” ClassNK said. 

“As one of parties of the MoU, MPA, a government agency overseeing the world’s busiest bunkering hub, will review and provide their views to the designs of the ammonia-fuelled ships to ensure their safe operations.”

The MoU is based on the premise that 200,000 deadweight ton class bulk carriers will be built by Nihon Shipyard with an ammonia dual-fuelled engine.

“The necessary clarifications of the specification for the ammonia-fueled ship to carry out ammonia bunkering in Singapore will be conducted among parties of this MoU, for the commercialisation of ammonia-fuelled ships,” ClassNK added.

 

Photo credit: Venti Views on Unsplash
Published: 19 July 2024

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Biofuel

“K” Line to use biofuel on three Gram Car Carriers-chartered vessels in Singapore

Biofuel will be supplied to the sister vessels “Viking Ocean”, “Viking Diamond” and “Viking Coral” while bunkering in Singapore, says Gram Car Carriers.

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“K” Line to use biofuel on three Gram Car Carriers-chartered vessels in Singapore

Norwegian transportation firm Gram Car Carriers (GCC) on Thursday (18 July) said Kawasaki Kisen Kaisha (“K” LINE) will use biofuel on three vessels chartered from GCC from July onwards. 

“The biofuel will be supplied to the sister vessels Viking Ocean, Viking Diamond and Viking Coral while bunkering in Singapore, an Asian hub for marine biofuels,” GCC said on its social media. 

“The use of biofuel is a key environmental initiative to reduce emissions across the entire value chain (well-to-exhaust) and an effective way of transitioning to low-carbon marine fuels amid globally tightening environmental regulations.”

“We support the green mobility shift. This means that GCC commit to supporting the transition of both vehicles and their logistic chain towards a zero-emission future in close cooperation with leading customers such as K-Line,” said Georg A. Whist, CEO of GCC.

 

Photo credit: Gram Car Carriers
Published: 19 July 2024

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