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ENGINE: Europe & Africa Bunker Fuel Availability Outlook (15 May 2024)

Bunker supply is normal in the ARA hub; bunkering partially suspended in Las Palmas; LSMGO very tight in Maputo.

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RESIZED ENGINE Europe and Africa

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:

  • Bunker supply is normal in the ARA hub
  • Bunkering partially suspended in Las Palmas
  • LSMGO very tight in Maputo

Northwest Europe

Bunker fuel availability is good in Rotterdam and in the wider ARA hub. Lead times for VLSFO in Rotterdam have come down from 4-5 days noted last week to 3-5 days now, a trader said. Similar lead times of 3-5 days are recommended for HSFO and LSMGO in the ARA hub.

The ARA hub has imported 362,000 b/d of fuel oil so far this month, up from 252,000 b/d of fuel oil imported in April, according to cargo tracker Vortexa.

Lithuania and Algeria have emerged as the ARA’s biggest fuel oil import sources so far this month, each accounting for 18% of the region’s total imports. Denmark holds the second spot, accounting for 17% of the region’s total imports, followed by France (13%) and Estonia (9%).

The region has imported 538,000 b/d of gasoil so far this month, up from 358,000 b/d in April.

Bunker fuel availability is normal in the German port of Hamburg. Suppliers are able to offer prompt supply for all grades in the port. Lead times of 3-5 days are advised to ensure full coverage from suppliers, a trader said.

Very prompt availability is tight across all bunker fuel grades off Skaw, with some suppliers able to offer stems only for non-prompt dates. A trader advises lead times of 7-10 days for all bunker fuel grades in the port. 

Mediterranean

Bunkering was proceeding smoothly in Gibraltar on Wednesday, with minimal congestion reported, a trader told ENGINE. The trader advised lead times of 2-4 days across all grades, down from 4-6 days seen last week.

Bunkering has been suspended in Las Palmas' outer anchorage since Monday because of rough weather conditions. Operations are unlikely to resume at the outer anchorage until Friday afternoon due to a forecast of rough weather conditions, a trader said.

Most suppliers continue to deliver stems at Las Palmas' more sheltered inner anchorage or alongside, the trader added. Availability is normal across all grades, but adverse weather conditions have increased lead times for all grades from 3-5 days advised last week to 4-6 days now.

Bunker demand has been steady in other Mediterranean ports like Piraeus, Malta Offshore and Istanbul, according to a trader.

Availability is normal in the Greek port of Piraeus. Lead times of 3-4 days are advised across all grades in the port. Calm weather has made it conducive to bunkering in the port, a source said.

Bunker fuel availability is also good off Malta. A trader recommends lead times of 3-4 days for all grades in the port. Bad weather is forecast to hit in periods until Saturday and may complicate bunker deliveries in the region, a source said. 

In Turkey’s Istanbul port, securing grades for very prompt dates can be difficult. Lead times of 3-4 days are recommended for all grades. Adverse weather conditions on Wednesday and Thursday could impact bunkering there.

Yacht races are scheduled to take place in the Bosphorus Strait on Sunday on the occasion of Atatürk, Youth and Sports Day, according to GAC Hot Port News. During this period, ship traffic will be temporarily suspended for a few hours.

Africa

Suppliers can offer VLSFO for non-prompt delivery dates in the South African ports of Durban and Richards Bay. A trader advises lead times of 7-10 days for the bunker fuel grade in both ports.

Durban also has normal availability of LSMGO. Lead times of 7-10 days are recommended. Wind gusts of up to 24 knots are forecast on Friday, which could impact bunkering in Durban.

Mozambique’s port of Nacala has good availability of HSFO and LSMGO. Demand has been steady for both grades, a source said. VLSFO availability is extremely tight in the port amid high demand for the grade.

In contrast, VLSFO availability has been good in Maputo port in Mozambique. The grade's demand has been steady there. Meanwhile, LSMGO demand has been relatively high in Maputo, which has contributed to tighten supply in the port.

By Manjula Nair

 

Photo credit and source: ENGINE
Published: 16 May 2024

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Business

Singapore: Sing Fuels appoints Sanket Naik as Managing Director

Sanket joined Sing Fuels in 2016 as a Credit Manager and has ‘immersed himself’ in all departments; will drive company to expand into areas like sustainability and biofuels.

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Singapore: Sing Fuels appoints Sanket Naik as Managing Director

Singapore-based provider of marine fuel solutions Sing Fuels on Saturday (7 December) said Sanket Naik, was recently promoted to Managing Director of Sing Fuels. 

The firm said Sanket joined Sing Fuels in 2016 as a Credit Manager. 

“He immersed himself across all departments, ranging from investment to business development, gaining a 360-degree understanding of the business and serving as a key driver of growth and success at Sing Fuels,” Sing Fuels said in a social media post. 

“As Managing Director, Sanket is poised to drive Sing Fuels 3.0, expanding into areas like sustainability and biofuels, ensuring we stay at the forefront of industry innovation.”

 

Photo credit: Sing Fuels
Published: 9 December, 2024

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Legal

Vietnam: Two vessels seized over 31,000 litres of illegal diesel oil

Vietnam Coast Guard said vessels were transporting various quantities of oil material: “HP-3790” was transporting about 16,000 litres and “Phuong Nam 68” transported about 15,000 liters.

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The Vietnam Coast Guard on Thursday (5 December) said it detained vessel HP-3790 in the sea bordering Hai Phong City and Quang Ninh Province. 

The Coast Guard discovered the ship at 2pm on 4 December displaying several suspicious signs and ordered the vessel to stop for administrative inspections.

The authority proceeded to inspect the vessel, which had three crew members on board, and found it to be transporting about 16,000 litres of diesel oil with no invoices or documents proving its legal origin.

HP 3790

The Coast Guard also detained another ship, Phuong Nam 68, that also had three crew members on board at 10am on 5 December. 

The ship was transporting about 15,000 liters of DO oil with no invoices or documents proving its legal origin.

As such, the ships were handed over to the Command of Coast Guard Region 1 for further investigation and handling in accordance with the provisions of law.

 

Photo credit: Vietnam Coast Guard
Published: 9 December, 2024

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Alternative Fuels

DNV: Use of ammonia as a bunker fuel among highlights in IMO MSC 109

Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted and interim guidelines for the general use of ammonia as fuel were approved during session.

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RESIZED CHUTTERSNAP on Unsplash

Classification society DNV on Saturday (7 December) shared a statutory news article that provides a summary of the 109th session of the International Maritime Organization’s (IMO) Maritime Safety Committee (MSC 109) including adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel and approved draft interim guidelines for ammonia as a marine fuel.

The following is an excerpt from the news update relating to bunker fuels:

The 109th session of the IMO’s Maritime Safety Committee (MSC 109) was held from 2 to 6 December 2024. Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted, and interim guidelines for the general use of ammonia as fuel were approved. The IGF Code was amended to improve the safety of ships using natural gas as fuel. MSC 109 further approved draft SOLAS amendments to enhance the safety of pilot transfer arrangements and progress was made on the new safety code for Maritime Autonomous Surface Ships.

Meeting highlights

  • Adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel
  • Adopted amendments to the IGF Code for ships using natural gas as fuel
  • Approved draft interim guidelines for ammonia as fuel
  • Approved draft amendments to SOLAS Regulation V/23 and the related performance standards to improve the safety of pilot transfer arrangements
  • Advanced the non-mandatory Code on Maritime Autono- mous Surface Ships (MASS)

Amendments to mandatory instruments 

Ammonia cargo as fuel (IGC Code) MSC 109 adopted amendments to Paragraph 16.9.2 of the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code) to enable the use of ammonia as fuel on ammonia carriers.

An MSC circular to encourage the voluntary early implementation of the amendments to Chapter 16 was approved. 

The amendments will enter into force on 1 July 2026.

Safety of ships using natural gas as fuel (IGF Code)

MSC 109 adopted amendments to the International Code of Safety for Ships Using Gases or Other Low-flashpoint Fuels (IGF Code), based on experience with the code since its entry into force in 2017.

The amendments include:

  • Clarified application provisions
  • Alignment with the IGC Code on suction wells for fuel tanks extending below the lowermost boundary of the tank
  • Alignment with the IGC Code on discharge from pressure relief valves to discharge to tanks under certain conditions
  • Clarified requirements to fire insulation for deck structures in relation to fuel tanks on open deck
  • Clarified requirements for hazardous ducts through non-hazardous spaces and vice versa
  • Updated requirements for the hazardous zone radius for fuel tank vent mast outlets, increasing to 6 metres for zone 1 and 4 metres for zone 2

The amendments will enter into force on 1 January 2028.

Goal-based new ship construction standards

Goal-based standards (GBS) for the new construction of bulk carriers and oil tankers are, conceptually, the IMO’s rules for class rules. Under the GBS, IMO auditors use guidelines to verify the construction rules for bulk carriers and oil tankers of class societies acting as Recognized Organizations (Resolution MSC.454(100)).

Initial GBS verification of Biro Klasifikasi Indonesia (BKI) BKI has requested GBS verification of their ship construction rules for bulk carries and oil tankers. MSC 109 agreed that the BKI rules comply with the GBS, provided non-conformities and observations are rectified and verified in a new audit.

North Atlantic wave data (IACS Recommendation No. 34, Revision 2) MSC 109 noted that IACS is currently undertaking a review of its Common Structural Rules (CSR) for bulk carriers and oil

tankers to reflect advances in data, materials, technologies and calculation methodologies. The CSR are implemented in the individual class rules of the IACS members, which are subject to compliance with the GBS.

MSC 109 further noted that IACS has now issued a revision of the North Atlantic wave data to ensure more scientific data as a basis for the rule formulas in the CSR. The new scatter diagram in Revision 2 of IACS Recommendation No. 34 shows the probability of occurrence of different sea states and is based on wave data from advanced hindcast wave models combined with ships’ AIS data for all SOLAS vessels in the period from 2013 to 2020.

MSC 109 agreed that an observation from the initial CSR audit in 2015, that the scatter diagram in Revision 1 of IACS Recommendation No. 34 was based on past statistics, was now considered addressed.

MSC 109 further invited IACS to provide more information about the assumptions, modelling and technical background for Revision 2 of IACS Recommendation No. 34, and agreed that the GBS audit of the revision to follow should be carried out in conjunction with the consequential rule changes in the CSR.

New technologies and alternative fuels 

Identification of gaps in current IMO instruments MSC 109 continued its consideration of potential alternative fuels and new technologies to support the reduction of GHG emissions from ships from a safety perspective. The intention is to identify safety obstacles, barriers and gaps in the current IMO instruments that may impede the use of the various alter- native fuels and new technologies.

MSC 109 agreed to add “swappable traction lithium-ion battery containers” to the list of alternative fuels and new technologies. The list already includes fuels and technologies such as ammonia, hydrogen, fuel cell power installations, nuclear power, solar power, wind power, lithium-ion batteries and supercapacitor energy storage technology.

Recommendations to address each of the identified barriers and gaps in the IMO regulatory framework will be considered in a Correspondence Group until MSC 110 (June 2025). Application of the IGF Code

MSC 109 agreed on draft amendments to SOLAS to clarify that the IGF Code applies to ships using gaseous fuels, whether they are low-flashpoint or not. The term “gaseous fuels” was added to the definitions in SOLAS Regulation II-1/2 and to the application provisions of SOLAS Regulations II-1/56 and 57.

The draft amendments are expected to enter into force on 1 January 2027, subject to adoption by MSC 110 (June 2025).

Carriage of cargoes and containers

Ammonia as fuel

MSC 109 approved draft interim guidelines for the safety of ships using ammonia as fuel.

Ships carrying liquefied gases in bulk (IGC Code)

MSC approved draft amendments to the IGC Code to incorporate the large number of Unified Interpretations developed since the latest major review of the code, which entered into force in 2016. The primary objective of the draft amendments is to remove ambiguity and promote the consistent implementation of the IGC Code requirements.

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 9 December, 2024

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