Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Availability gets tighter as many avoid Russian product; prompt HSFO380 limited in several European ports; shorter credit days, some demanding cash in advance.

Published

3 years ago

March 17, 2022

Admin

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:

16 March 2022

Availability gets tighter as many avoid Russian product
Prompt HSFO380 limited in several European ports
Shorter credit days, some demanding cash in advance

Bunker fuel availability in the ARA hub is tight across all grades. HSFO380 is particularly tight and recommended lead times are generally around 10 days. Certain suppliers can offer with six days of lead time.

Some suppliers in ARA can offer prompt LSMGO deliveries, while other suppliers are struggling with availability. Recommended lead times for VLSFO and LSMGO are around 6-8 days ahead.

ARA’s independently held ARA stocks of both fuel oil and gasoil decreased by almost 2% to last week, with gasoil drawn down close to recent multi-year lows, according to Insights Global.

Supply has also been getting tighter in Hamburg. HSFO380 and LSMGO availability is tight compared to VLSFO. Certain suppliers are still offering HSFO380 produced at the Schwedt refinery, sources say.

Significant volumes of HSFO380 supplied as bunker fuel in Hamburg come from the Schwedt refinery. The refinery gets its crude supplies via pipeline from Russia, sources say. The refinery is partly owned by Russian oil company Rosneft, which is now shunned by several oil majors and bunker suppliers.

Recommended lead time in Hamburg for VLSFO and LSMGO is around 3-5 days.

In Lisbon, the availability of VLSFO and LSMGO is tight. One supplier has adequate supplies and can offer both grades, but other suppliers are struggling with availability this week, sources say.

“Prompt supplies in Lisbon could be possible however suppliers are facing troubles sourcing trucks for deliveries,” one market participant said.

Bunker fuel availability is tight in Gibraltar and recommended lead times are around 9-10 days. Certain suppliers are fully booked until 25 March, sources say.

Due to volatile crude prices and more limited bunker supplies, credit lines have come under pressure in Gibraltar and other ports. “The number of credit days has dropped to 10 and even 7 days, while few suppliers are offering cash in advance basis,” one market participant said.

In Gibraltar, port congestion has dropped to two vessels, from nine vessels on Monday, says port agent MH Bland. Two suppliers are running 4-24 hours behind schedule.

In Algeciras, bunker deliveries on Wednesday were suspended at the more weather-exposed outer Delta anchorage and are limited to the port's inner A and B anchorages, says port agent MH Bland.

Meanwhile, bunker operations continue to operate smoothly in Ceuta. Seven vessels are due to arrive for bunkers on Wednesday, according to shipping agent Jose Salama & Cia.

In Las Palmas, bunker operations continue to be partially suspended due to bad weather conditions, says port agent MH Bland. Bunker deliveries are still possible at the inner anchorage and through ex-pipe at berth in Las Palmas.

“Suppliers in Las Palmas are running slow with deliveries due to bad weather,” a source says. One supplier has stopped deliveries by barge amid rough weather conditions.

Heavy swells are set to disrupt bunkering at Las Palmas' outer anchorage for the week ahead, with a brief lull forecast on Saturday.

VLSFO and LSMGO availability are good in Piraeus, and any tightness is currently down to lack of barge capacity as opposed to availability of volumes to supply. Recommended lead times are around 5-7 days.

In Istanbul, demand continues to be slow due to the ongoing war in Ukraine and altered vessel movements in the Black Sea, sources say. Availability of VLSFO and LSMGO is good, suppliers can offer prompt deliveries.

Photo credit and source: ENGINE
Published: 17 March, 2022

Bunker Fuel

TMD Energy becomes first Malaysian bunker supplier to list on NYSE American

Straits Energy Resources’ subsidiary announces that its shares have been listed on 21 April, becoming the first Malaysian marine bunker supplier to achieve a listing on a major US exchange.

Published

9 hours ago

April 22, 2025

Admin

TMD Energy Limited (TMD Energy), a Malaysia and Singapore-based provider of integrated marine bunkering services and a Straits Energy Resources Berhad (SER) subsidiary, on Tuesday (22 April) announced that its shares have been listed on 21 April and began trading on the NYSE American under the ticker symbol “TMDE”.

Dato’ Sri Ron Ho Kam Choy, Chairman, Executive Director, and Chief Executive Officer of TMD Energy, said: “We are proud to become the first Malaysian marine bunker supplier to achieve a listing on a major US exchange, reinforcing our position as one of the industry’s leading players.

“Leveraging Malaysia’s strategic location along major shipping routes including the Straits of Malacca and the South China Sea, as well as resilient demand for bunker fuel in the region and globally, we are well positioned for further expansion. On top of that, TMD Energy is also the first Malaysian company to list on the NYSE American.

“Our listing in NYSE American will help us to enhance our international profile, expand our reach, capture new markets, and deliver sustainable, higher returns to our shareholders.”

TMD Energy’s share price opened at USD 3.26 on Monday, rising to an all-time high of USD 4.12 on its market debut before closing at USD 3.63, which was 11.69% higher than its initial public offering (IPO) price of USD 3.25 per share. This gave the company a market capitalisation of USD 83.85 million (equivalent to approximately MYR 367.2 million) on its first day as a publicly listed company.

TMD Energy’s IPO was priced at USD 3.25 per share, and total gross proceeds (excluding the over-allotments) before deducting underwriting discounts and other related expenses were approximately USD 10.08 million (equivalent to approximately MYR 44.13 million).

Proceeds from the IPO will be used for the purchase of cargo oil; defraying listing expenses; and working capital and other general corporate purposes.

The company has granted the underwriter a 45-day option to purchase up to an aggregate of 465,000 additional shares to cover over-allotments at the IPO price, If the underwriter exercises their option to purchase the additional shares in full, the total gross proceeds before deducting underwriting discounts and other related expenses from the offering are expected to be approximately USD 11.59 million.

Dato’ David Yoong Leong Yan, Executive Director of TMD Energy, said: “Our debut on the NYSE American is a key milestone in our journey of growth. While continuing to drive strong organic growth, as part of our strategic growth initiatives, we remain focused on identifying and pursuing strategic mergers and acquisition opportunities that align with our long- term vision and strengthen our regional presence.”

Manifold Times previously reported SER announcing its proposal to list its oil bunkering segment via the listing and quotation of the ordinary shares in its 76.68%-owned subsidiary, TMD Energy, on the New York Stock Exchange American (NYSE American).

TMD Energy and its subsidiaries (TMD Energy Group) are mainly involved in marine fuel bunkering services specialising in the supply and marketing of marine gas oil and marine fuel oil to various types of ships and vessels at sea. In addition, the company provides vessel chartering services and vessel management services.

TMD Energy Group operates in 19 ports across Malaysia, with a fleet of 15 well-maintained bunkering vessels with capacities ranging from 540 dwt to 7,820 dwt, of which nine are double-bottom and double-hull vessels with an average cargo-carrying capacity of 4,200 dwt each. Its customers include ship owners and operators, shipping lines, logistics and freight companies, as well as oil and gas traders or brokers.

TMD Energy’s growth strategy includes expanding its market presence across Southeast Asia, growing its bunkering fleet, providing ship management services to external customers and diversifying its fuel offering to include eco-friendly alternative fuels such as biodiesel.

TMD Energy is part of SER, a Fortune Southeast Asia 500 company listed on the ACE Market of Bursa Malaysia Securities.

Photo credit: TMD Energy
Published: 22 April, 2025

LNG Bunkering

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

After departing from Saijo Shipyard, LNG fuel will be supplied directly to “Verde Heraldo” through shore-to-ship bunkering at Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

Published

9 hours ago

April 22, 2025

Admin

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

Mitsui OSK Lines (MOL) on Friday (18 April) said the naming and delivery ceremony for the LNG-fuelled Capesize bulker, which MOL ordered for JFE Steel Corporation, was held at the Saijo Shipyard of Imabari Shipbuilding.

The vessel was named the Verde Heraldo, which means “Green Pioneer” in Spanish, by JFE Steel President and CEO Masayuki Hirose. MOL executives including President & CEO Hashimoto were also on hand for the ceremony.

After departing from Saijo Shipyard, LNG fuel will be supplied directly to the vessel through shore-to-ship bunkering at the Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

The Verde Heraldo will sail under long-term transport contracts to supply raw materials for JFE Steel's mills, providing both reduced environmental impact and safe and reliable marine transport services.

About Verde Heraldo

LOA: 299.99 m
Breadth: 50.00 m
Draft: 18.436 m
Deadweight tonnage: 210,321 tonnes
Shipyards: Imabari Shipbuilding and Nihon Shipyard

Photo credit: Mitsui OSK Lines
Published: 22 April, 2025

Business

ENGINE: Adverse weather keeps bunker operations suspended in Zhoushan’s OPL area

Bunker deliveries at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages have been suspended due to rough weather; some suppliers expect to fully resume operations in OPL area by 22 April.

Published

9 hours ago

April 22, 2025

Admin

Bunker deliveries at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages have been suspended since Saturday due to rough weather, according to a source on Monday (21 April).

However, bunker operations have resumed this morning at Zhoushan’s more sheltered Xiushandong anchorage and the inner anchorage of Mazhi.

The port is currently experiencing strong wind gusts of 24–27 knots and swells approaching one meter.

Several suppliers expect to fully resume bunkering operations in the OPL area by tomorrow (22 April), the source said.

By Tuhin Roy

Photo credit: Manifold Times
Published: 22 April, 2025