Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

Demand weak in Zhoushan; VLSFO availability good across most Indian ports; weather disruptions plague Sri Lankan ports.

Published

9 months ago

January 4, 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:

3 January 2023

Demand weak in Zhoushan
VLSFO availability good across most Indian ports
Weather disruptions plague Sri Lankan ports

Singapore

Bunker demand for VLSFO has been average in Singapore coming off the New Year holidays, a source says. Recommended lead times for the grade have come down slightly to 10-12 days now, from two weeks previously.

Meanwhile, recommended lead times for HSFO in Singapore have gone up significantly, from 6-10 days to 12-14 days now. LSMGO availability remains good, with very short lead times of 2-4 days advised.

Singapore’s residual fuel oil stocks averaged 2% higher in December than in November, according to Enterprise Singapore. Singapore’s fuel oil imports and exports both averaged 15% lower in December, with imports notably declining to a seven-month low.

Meanwhile, Singapore’s middle distillate stocks remained roughly steady between November and December.

East Asia

Zhoushan continues to grapple with sluggish demand, a source says. Persistent weather disruptions throughout December contributed to cap bunker demand. Suppliers in the Chinese bunkering hub has been pricing VLSFO at competitive levels to other regional ports to spur demand.

Availability of VLSFO has been getting tighter in Zhoushan as replenishment cargoes have been delayed, a source says. Recommended lead times for VLSFO have increased slightly to around seven days for larger quantities, up from 3-4 days in the prior week. But lead times remain almost steady at 3-5 days for smaller quantities.

The arrival of replenishment cargo last week has eased the tightness for HSFO in Zhoushan, and availability of the grade no longer subject to enquiry. Another replenishment cargo is due for arrival in the second week of January, which is likely to alleviate the situation even further, a source says.

Lead times of around seven days are recommended for HSFO in Zhoushan now. Availability of LSMGO remains okay, with lead times of 3-5 days.

Demand remains very healthy in Hong Kong, and lead times of around seven days are recommended for all grades.

Meanwhile, lead times for all grades across South Korean ports are 4-8 days ahead, which is much shorter than the two weeks previously advised. Demand remains normal in South Korean ports, a source says.

Bad weather is forecast in the South Korean ports of Ulsan, Onsan, Daesan, Taean and Yeosu from Friday onwards, which might disrupt bunkering, a source says.

South Asia

VLSFO and LSMGO remains readily available in India’s Mumbai, with short lead times of 2-3 days.

Availability of VLSFO remains good in Mundra and Kandla on India’s northwest coast, with lead times of 2-3 days advised. Prompt delivery dates for LSMGO are available in Kandla. Bad weather, however, is forecast in Kandla and Sikka over the next few days, which might hamper bunkering in the ports.

Cochin and Chennai on the southern coast of India have good availability of both VLSFO and LSMGO, with lead times of 2-3 days recommended. Meanwhile, availability of both the grades remains subject to enquiry in Tuticorin.

Prompt dates are available for both VLSFO and LSMGO in Visakhapatnam on India’s southwestern coast.

Haldia on India’s east coast has good availability of VLSFO, while Paradip has almost run out of the grade.

The Sri Lankan port of Colombo has been grappling with bad weather since the beginning of this week, which has disrupted bunkering in the port’s outer port limits. However, weather has improved, and delivery of stems resumed on Tuesday, a source says.

Recommended lead times across all grades in Colombo are nine days, which is significantly up from four days last week.

Trincomalee, on the northeastern coast of Sri Lanka, has been bearing the brunt of bad weather so far this week. Suppliers have been attempting to make deliveries when the weather permits, a source says.

Middle East

Good bunker demand in Fujairah since the middle of December, coupled with tight availability, has led suppliers in the port to price its VLSFO at premiums to other major East of Suez ports.

Lead times of 8-10 days are recommended for the grade in Fujairah now. LSMGO has lead times of around nine days, while HSFO requires lead times of around seven days in the UAE port.

Prompt delivery dates for LSMGO are available in the Omani ports of Duqm, Sohar, Salalah and Muscat.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 4 January, 2022

Business

Singapore: Maritime Census 2023 survey deadline extended to 23 October

‘MPA is conducting an annual survey to collect timely statistics on the maritime industry’s activities, technology, sustainability and manpower developments,’ says the port authority.

Published

13 hours ago

September 28, 2023

Admin

SG bunker tanker sailing Photo by Manifold Times

The Maritime and Port Authority of Singapore (MPA) on Wednesday (27 September) said the Maritime Census 2023 survey deadline has been extended to 23 October.

“MPA is conducting an annual survey to collect timely statistics on the maritime industry’s activities, technology, sustainability and manpower developments,” it said in a social media post.

Maritime firms selected for the survey will be notified by email or post to complete the survey online via go.gov.sg/mpasurvey .

“Your participation will help us shape policies and programmes that will drive #MaritimeSG forward,” it added.

Manifold Times previously reported MPA announcing it was conducting the census to collect timely statistics.

Photo credit: Maritime and Port Authority of Singapore
Published: 28 September, 2023

Alternative Fuels

GCMD, BCG survey highlights three maritime decarbonisation archetypes

Survey identified three decarbonisation archetypes within the shipping industry, differentiated in their outlook, investment appetite and the challenges faced.

Published

13 hours ago

September 28, 2023

Admin

RESIZED Venti Views on Unsplash ship vessel

The Global Centre for Maritime Decarbonisation (GCMD) and Boston Consulting Group (BCG) conducted an industry survey to take stock of shipowners and operators’ progress in establishing six elements needed for the shipping industry to reach net zero, according to BCG on Wednesday (27 September).

The survey saw strong participation from 128 shipowners and operators across vessel types, fleet sizes and geographies, which collectively own or operate 14,000 merchant vessels, and account for USD500 billion in revenue.

The duo found high decarbonisation ambitions: Most respondents viewed net zero as a strategic priority, and 77% had already set concrete decarbonisation targets. The industry has also mobilised resources to decarbonise: respondents are investing 2% of their revenues into green initiatives, and 87% have personnel working toward green objectives.

The path to net zero for shipowners and operators requires six elements:

A robust strategy and roadmap
Four specific decarbonisation levers to reduce emissions: operational efficiency, technological efficiency, fuel transition, and shipboard carbon capture
Enablers such as dedicated sustainability teams, strategic investments in green initiatives, internal carbon prices, and digitalization

While the industry has made some progress in adopting mature and cost-effective efficiency levers, adoption of complex or nascent levers remains low. Drop-in green fuels are constrained by costs and supply-side gaps, and optimism for future cleaner fuels is yet to translate into firm commitment.

The industry is now at a pivotal point, with many shipowners and operators ramping up their decarbonisation efforts. Three-quarters of respondents plan to increase investments in green initiatives. Stakeholders can build on this momentum with a variety of supportive actions. But to be effective, they need to tailor their interventions to address the specific challenges that shipowners and operators face at each stage of decarbonisation.

Three Decarbonisation Archetypes

GCMD and BCG saw three archetypes, differentiated in their outlook, investment appetite, and the challenges faced.

Frontrunners have the greatest ambitions and are willing to invest heavily. They are pushing boundaries, adopting even nascent decarbonisation levers, such as wind propulsion and air lubrication. A majority plan to pilot shipboard carbon capture solutions by 2025. Frontrunners are also planning to adopt methanol and ammonia as early as 2026 and 2029 respectively, and the availability of fuels and bunkering infrastructure will be critical to enabling adoption.

Followers believe in decarbonising their fleets, but have tighter investment thresholds and a near-term outlook. They have kept pace with Frontrunners in adopting mature and cost-effective efficiency levers, such as main engine improvements and slow steaming, but are behind in the adoption of nascent levers, such as wind propulsion and air lubrication.

Conservatives are still early in their decarbonisation journey, likely due to a lack of awareness and familiarity with the various decarbonisation levers, and the capabilities to assess and deploy them. They are best supported by measures that increase their familiarity with the levers and help contextualise them to their specific fleets and operational requirements.

The research highlights five key actions for stakeholders:

Conduct technical pilots and facilitate data sharing, especially for nascent levers

Create innovative financing mechanisms to de-risk adoption of less mature levers
Raise awareness, contextualize levers, and build capabilities, especially among Conservatives
Start to build out future fuels infrastructure at ports
Develop mechanisms to equalize and share the costs of levers across the ecosystem
Maritime decarbonization is a complex, critical endeavor. The successful implementation of these five key actions demands a whole-of-value-chain approach. By working together, stakeholders can transform the maritime sector into a beacon of environmental stewardship, and set a course for a greener future where decarbonization and commercial success go hand in hand.

Note: The GCMD-BCG Global Maritime Decarbonisation Survey report can be downloaded here.

Photo credit: Venti Views on Unsplash
Published: 28 September, 2023

Ammonia

Itochu enters MoU with firms for study of ammonia bunkering safety for container carrier

Through this cooperation, several companies and organisations will come together to discuss and study safety issues during ammonia bunkering of a container carrier that uses ammonia as a bunker fuel.

Published

13 hours ago

September 28, 2023

Admin

Itochu enters MoU with firms for study of ammonia bunkering safety for container carrier

Tokyo-based Itochu Corporation on Tuesday (22 September) said it has executed a Memorandum of Understanding for a joint study of ammonia bunkering safety for an ammonia-fuelled container carrier among eight companies and organisations with the aim of implementing the use of ammonia as a bunker fuel in shipping industry.

Through this cooperation, several companies and organisations will come together to discuss and study safety issues during ammonia bunkering of a container carrier that uses ammonia as a main fuel.

“This MOU for Ammonia Bunkering Safety for Container Carrier is an important milestone for social implementation of the use of ammonia as marine fuel on a global scale, and also a necessary step toward the realisation of the Integrated Project consisting of the construction of a global ammonia supply chain and the development of ammonia-fuelled ships by ITOCHU and its partner companies,” the firm said in a statement.

A joint study that will be carried out under the MOU is a successive phase of the existing Joint Study Framework launched in 2021 by 34 companies and organizations including ITOCHU and Joint Study Framework for Ammonia Bunkering Safety launched in 2022 by 16 companies and organizations including ITOCHU, and focused on discussion and study of safety issues of ammonia bunkering to ammonia-fueled container carriers among experts from port authorities, container liner operators, bunkering related players and shipping company.

A key subject of the joint study under this MOU for Ammonia Bunkering Safety for Container Carrier is the safety assessment for simultaneous operations of container cargo operations and ammonia bunkering in a container terminal, which is generally required for container carriers to achieve operational efficiencies.

ITOCHU said it is promoting a development of ammonia-fueled container carriers with potential partners following the development of ammonia-fuelled bulk carrier, which obtained Approval in Principle in 2022. ITOCHU will accelerate the development of an ammonia-fueled container carrier based on findings of this MOU for Ammonia Bunkering Safety for Container Carrier and plans to bring it to the international shipping market in late 2020s.

ITOCHU will accelerate the development of sustainable energy systems through these initiatives and ensure its contributions to the SDGs and improvement of related efforts, one of the basic policies laid out in its new medium-term management plan, as the company pursues a low-carbon society.

The eight companies and organisations are; Algeciras Bay Port Authority, Spain; Port of Rotterdam, Netherlands; CMA CGM, France; A.P.Moller Maersk A/S, Denmark; Mitsui O.S.K. Lines, Japan; Pavilion Energy Singapore, Singapore; TotalEnergies Marine Fuels, Singapore; and ITOCHU.