Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

Availability good across grades in Zhoushan; South Korean ports face weather disruptions; demand picks up in Fujairah.

Published

8 months ago

April 26, 2023

ENGINE East of Suez Bunker Fuel Availability Outlook

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:

25 April 2023

Availability good across grades in Zhoushan
South Korean ports face weather disruptions
Demand picks up in Fujairah

Singapore

Demand has been average in Singapore so far this week. Availability of VLSFO and HSFO has gotten tighter in Singapore, where stems of both grades require lead times of 9-11 days and 5-11 days, respectively. Lead times of both grades are roughly the same as last week.

LSMGO is more readily available with shorter lead times of 4-7 days – almost unchanged from last week.

Singapore’s residual fuel oil stocks have averaged 6% higher so far in April than across March, according to Enterprise Singapore. Net fuel oil imports to Singapore have declined by 6% this month. Both imports and exports are up this month. While imports have inched up 1%, exports have surged 16%.

Meanwhile, Singapore’s middle distillate stocks have averaged 10% lower this month than in March.

East Asia

Bunker deliveries resumed at all of Zhoushan's four anchorages on Tuesday, after being suspended by rough weather on Monday, a source says.

VLSFO and LSMGO stems require lead times of 3-5 days in the Chinese bunkering hub – virtually unchanged from end of last week. Lead times for HSFO are slightly longer at 5-7 days recommended.

Demand is healthy in Hong Kong and VLSFO and HSFO grades are tight, a source says. Both grades need lead times of around seven days. VLSFO lead times have gone up from four days, while availability of HSFO has improved from last week, when the grade was subject to enquiry. LSMGO is readily available.

Meanwhile, availability across all bunker grades has been getting tighter across South Korean ports, with lead times varying widely between 5-10 days. Lead times have increased across both southern and western South Korean ports, from 3-7 days and 4-5 days last week, respectively.

Bad weather conditions are forecast intermittently between 26-30 April, which could trigger suspensions or disrupt deliveries in the South Korean ports of Ulsan, Onsan, Daesan, Taean and Yeosu.

Adverse weather conditions are also predicted to hamper bunker deliveries in the Kiwi port of Tauranga between 25-26 April and 30 April-1 May.

South Asia

VLSFO and LSMGO can be delivered with around 2-3 days of lead time in several Indian ports, including Kandla on the northwest coast, Cochin and Chennai on the southern coast, and Visakhapatnam on the southwestern coast.

Availability of VLSFO and LSMGO remains subject to availability in India’s Mumbai. Meanwhile, availability of grades is subject to enquiry in Tuticorin on the southeast coast and Haldia on the east coast, while a supplier in Paradip is almost out of stock for both grades.

However, rough weather may disrupt bunkering in Kandla on 26 April and in the southwestern port of Visakhapatnam on 30 April, a source says.

Middle East

Lead times of 5-6 days are recommended for VLSFO and LSMGO in Fujairah – slightly lower than 5-7 days last week. But lead times have gone up for HSFO, from 5-7 days last week to around nine days now. Demand has been picking up this week in the port, a source says.

The Omani ports of Duqm, Sohar, Salalah and Muscat have good availability of LSMGO, with prompt dates available.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 26 April, 2023

Methanol

China: Cosco Shipping and bp to explore collaboration in methanol bunker fuel

Duo signed a MoU in Shanghai to expand their scope of strategic cooperation into new areas including lubricant supply, methanol bunker fuel supply for bunkering and offshore wind supply chain.

Published

5 hours ago

December 11, 2023

Admin

China: Cosco Shipping and bp to explore collaboration into methanol bunker fuel

Cosco Shipping on Thursday (7 December) said it has signed a Memorandum of Understanding (MoU) with bp to expand their scope of strategic cooperation into new areas on 5 December in Shanghai.

“This includes Castrol Marine lubricants and hydrocarbons transportation, offshore equipment as well as exploring collaboration opportunities in areas such as methanol supply for bunkering and offshore wind supply chain,” Cosco said.

“Together, both parties will further capitalize on the business advantages of both parties, enhance synergies, and achieve complementary advantages and common development.”

William Lin, bp Group Executive Vice President, and Lin Ji, Executive Vice President of COSCO SHIPPING, witnessed the signing. Simon Yang, bp Group Senior Vice President and bp China President, and Chen Wei, Deputy Head of the Operations Division of COSCO SHIPPING, signed the document on behalf of the two parties.

Cosco said bp has been operating in China since the early 1970s and is one of the leading foreign-invested companies in China’s energy industry.

“bp and Cosco Shipping have a longstanding history of cooperation, including the transportation of energy products, offshore equipment manufacturing services, and the supply of marine fuels and lubricants,” it added.

Photo credit: Cosco Shipping
Published: 11 December, 2023

Methanol

Maersk to deploy first large methanol-powered vessel on Asia-Europe trade lane in 2024

Ship will enter service on the AE7 string connecting Asia and Europe, which includes port calls in Shanghai and Tanjung Pelepas in Malaysia, with Ningbo in China, being its first destination.

Published

5 hours ago

December 11, 2023

Admin

Maersk to deploy first large methanol-powered vessel on Asia-Europe trade lane in 2024

A.P. Moller - Maersk (Maersk) on Thursday (7 December) said it was about to launch the first of its 18 large methanol-enabled vessels currently on order.

On 9 February 2024, the ship will enter service on the AE7 string connecting Asia and Europe, which includes port calls in Shanghai, Tanjung Pelepas, Colombo and Hamburg, with Ningbo, China, being its first destination.

“The container vessel built by Hyundai Heavy Industries (HHI) in South Korea has a nominal capacity of 16,000 containers (TEU) and is equipped with a dual-fuel engine enabling operations on methanol as well as biodiesel and conventional bunker fuel,” the firm said.

Maersk added it has secured sufficient green methanol to cover the vessel’s maiden voyage and continues to work diligently on 2024-25 sourcing solutions for its methanol-enabled vessel fleet.

“Deploying the first of our large methanol-enabled vessels on one of the world’s largest trade lanes, Asia - Europe, is a landmark in our journey towards our Net-Zero target. With the vessel’s capacity of 16,000 containers, this will make a significant impact in our customers’ efforts to decarbonise their supply chains, and we are looking forward to introducing more methanol-enabled vessels on this and other trades during 2024,” Karsten Kildahl Chief Commercial Officer at Maersk, said.

Ahead of its deployment, the vessel will be named at the shipyard in end January 2024. The following two sister vessels will be deployed in the first half of 2024 with naming events taking place in Yokohama, Japan, and Los Angeles, USA. Maersk said it was expected to take delivery of four additional sister vessels in the second half of 2024.

At the time of deployment of the first large vessel, it will be the only second container vessel in the world that can sail on green methanol, the first being the feeder vessel Laura Maersk which entered service in September this year.

Overview of Maersk vessels on order

Maersk has 24 container vessels on order
All vessels currently on order will be equipped with dual-fuel engines and will be able to operate on green methanol
12 of the vessels on order have a capacity of 16,000 TEU (Twenty-foot Equivalent Unit containers)
6 of the vessels on order have a capacity of 17,000 TEU
6 of the vessels on order have a capacity of 9,000 TEU
Since 2021, Maersk has had a policy of only ordering new vessels able to operate on green fuels

About Maersk’s AE7 service string

The AE7 string connects Asia and Europe through the Suez Canal
The AE7 string has the following port calls: Ningbo, Shanghai, Nansha, Yantian (all China), Tanjung Pelepas (Malaysia), Colombo (Sri Lanka), Port Tangiers (Morocco), Felixstowe (UK), Hamburg (Germany), Antwerp (Belgium), London Gateway (UK), Le Havre (France), Port Tangiers, Jeddah (Saudi Arabia), Abu Dhabi (UAE) and Jebel Ali (UAE)

Photo credit: A.P. Moller - Maersk
Published: 11 December, 2023

VLSFO

ENGINE: Petrobras’ new bunker price mechanism adds to Brazil market shake-up

With a new pricing mechanism now in place since 1 November, Petrobras bunker prices can change anytime throughout the day and final prices will depend on enquiries, a source says.

Published

5 hours ago

December 11, 2023

Admin

Since Brazilian petroleum firm and bunker supplier Petrobras shifted from posted bunker prices to indicative prices, Santos’ VLSFO discounts to Brazilian and foreign ports have narrowed.

Petrobras started issuing indicative bunker prices for Brazilian ports on 1 November, shifting from its usual pricing mechanism of posted prices. These posted prices were mostly fixed in nature, and did not tend to change despite movements in underlying crude values.

With a new pricing mechanism now in place, Petrobras bunker prices can change anytime throughout the day and final prices will depend on enquiries, a source says. The new pricing has been reflected in Brazilian bunker price dynamics.

Santos’ VLSFO price discount to Zona Comun’s VLSFO has come down from peak levels of $50/mt in September to around $35/mt in October and November and has further slid to just $4/mt.

VLSFO prices have also changed rapidly between Brazilian ports in recent weeks. Rio Grande’s VLSFO premium over Santos momentarily shrunk from nearly $40/mt in November to just $8/mt earlier this week, but then widened back to $42/mt.

Some argue that Petrobras decided to change the pricing mechanism because of the rise in competition in the Brazilian market. In recent months, several suppliers such as Ipiranga and Bunker One have expanded their Brazilian bunker operations, offering new grades and entering new ports in Brazil. Raizen also started VLSFO supply in the port of Itaqui and São Luiz in July this year.

Another source says that competition is mostly between Brazilian ports - as opposed to with foreign ports. Ships calling in Brazil will be able to pick and choose bunker-only ports with the best offers. Meanwhile, those vessels calling in Argentina will ideally pick bunkers from Zona Comun rather than Brazilian ports, the source adds.

By Nithin Chandran

Source: ENGINE
Photo credit: Gabriel Martins on Unsplash
Published: 11 December, 2023