Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

HSFO supply remains tight in Gibraltar Strait ports; ARA fuel oil stocks add more weight, gasoil drawn further; suppliers working through backlog in Algoa Bay.

Published

3 years ago

June 23, 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:

22 June 2022

HSFO supply remains tight in Gibraltar Strait ports
ARA fuel oil stocks add more weight, gasoil drawn further
Suppliers working through backlog in Algoa Bay

Northwest Europe

VLSFO and LSMGO availability seems normal in ARA ports, while HSFO is tight for prompt delivery, sources say.

The recommended lead time for VLSFO and LSMGO is around three days, while HSFO requires a minimum of five days for delivery in the ARA, they say.

Independently held fuel oil stocks in the ARA added more weight last week with continuous inflows from Russia.

Fuel oil stocks increased by 460,000 bbls to 8.02 million bbls in the week to 16 June, while gasoil inventory decreased by 340,000 bbls to 10.61 million bbls, according to Insights Global data.

The region’s fuel oil stocks have gradually been increasing since a steep fall in April, and gained 47% in volume since then. Meanwhile, the ARA’s gasoil stocks plunged to fresh eight-year lows in the week to 16 June.

Russia is still estimated to be the top source of fuel oil cargoes for ARA importers, accounting for 42% of their total imports in the two first weeks of June, according to cargo tracker Vortexa.

The Port of Rotterdam said last week that the latest set of sanctions imposed by the EU on Russia have “not (yet) affected” its energy imports due to a transition period for phasing out Russian imports of energy products.

On 3 June, the European Council announced a sixth sanction package, prohibiting imports of crude and oil products from Russia. Seaborne crude imports will be phased out over six months, oil products over eight months.

In the German port of Hamburg, bunker fuel availability is said to be normal, but supply of HSFO is under pressure, a source says. Very few suppliers are offering HSFO in Hamburg and in limited quantities.

In Bremerhaven, supply of LSMGO is good while prompt deliveries of VLSFO and HSFO are more difficult to find there, a source says.

Mediterranean

HSFO supply is under pressure for prompt delivery in the Gibraltar Strait ports, sources say.

Few suppliers in the Strait currently have HSFO stocks and are offering the grade in limited quantity. However, availability of LSMGO is said to be normal, with a recommended lead time of around four days.

Minimal congestion has been reported in Gibraltar this week. Two suppliers experienced some hours of delays on Wednesday, port agent MH Bland says.

In Ceuta, availability of LSMGO seems normal, requiring lead time of around four days, a source says. Slight congestion was reported in Ceuta on Wednesday, where two vessels were waiting to bunker at anchorage and 11 more were scheduled to arrive, agent Jose Salama & Cia says.

In Malta, all bunker operations are running normally in Area 3 amid conducive weather conditions, Seatrans Shipping agency says.

Availability of VLSFO and LSMGO seems normal in Malta, as some suppliers are offering deliveries on prompt dates, a source says.

Africa

Bunker supplies remain tight in Durban and prompt deliveries of both VLSFO and LSMGO are hard to find, source say.

Some suppliers are expecting replenishment to arrive next week, which could ease pressure on supplies, a source says.

Bunkering is in progress in Algoa Bay, where suppliers have gradually been clearing a backlog of vessels, according to Rennies Ships Agency.

Adverse weather conditions during most part of the last week had built a considerable backlog of vessels in Algoa Bay and Port Elizabeth. Bunkering resumed in the bay on 16 June, after a suspension on 15 June due to rough weather conditions.

There were four vessels waiting to bunker in Algoa Bay and Port Elizabeth, and four more due to arrive later in the day on Wednesday, Rennies Ships Agency says. An additional 15 vessels are scheduled to arrive between Thursday and Sunday, it says.

Bunker fuel availability is normal in Algoa Bay, but erratic weather conditions remain a concern there, a source says. Strong winds and high swells are forecast in the bay between Friday and Saturday, which could disrupt bunker operations again.

Photo credit: ENGINE
Published: 23 June, 2022

Biofuel

Ulsan Port aims to become leading bio bunker fuel supply hub in Northeast Asia

UPA’s Director Byeong-gu Kim unveiled comprehensive plans to promote marine biofuel adoption centered on Ulsan Port at 2nd Forum on the Commercialization of Biofuels for Maritime Vessels in Seoul.

Published

9 hours ago

April 25, 2025

Admin

Ulsan Port aims to become leading bio bunker fuel supply hub in Northeast Asia

Ulsan Port Authority (UPA) on Thursday (24 April) said it is looking to position the port as a leading biofuel supply hub in Northeast Asia.

UPA, Korea’s port operator for energy and petrochemical logistics, emphasised its strategic role in building a stable marine biofuel supply chain aligned with tightening global regulations.

UPA's Director Byeong-gu Kim unveiled comprehensive plans to promote marine biofuel adoption centered on Ulsan Port at a recent biofuel forum in Seoul, highlighting the port's strategic advantages including its world-class petrochemical infrastructure, extensive storage facilities, and specialised handling expertise.

The presentation showcased UPA's commitment to developing the necessary facilities and operational frameworks to become Northeast Asia's “premier biofuel bunkering destination”.

“As IMO environmental regulations intensify, Ulsan Port Authority is strategically positioned to lead the transition to alternative fuels,” stated UPA President Jae-young Byeon.

“Marine biofuels represent a practical alternative that can be implemented immediately without requiring new vessel construction or retrofitting. UPA will continue to strengthen port-centered biofuel supply networks and create a competitive eco-friendly marine fuel market through our advanced infrastructure and technical expertise.”

Chief Executive of the Korea Maritime Cooperation Center (KMC), Hong Sun-bae, emphasised that “the strategic partnership between the shipping industry and the logistics sector has become more important than ever in this era of climate-friendly economic transition.”

The 2nd Forum on the Commercialisation of Biofuels for Maritime Vessels, hosted by the Ministry of Oceans and Fisheries and co-organized by UPA and KMC, drew around 300 key stakeholders from across the shipping, energy, terminal, shipbuilding, and finance sectors.

The event underscored the increasing urgency of eco-friendly fuel adoption, following the International Maritime Organization (IMO)'s approval of mid-term greenhouse gas reduction measures.

Expert sessions featured actionable insights and market intelligence from key players in the maritime and energy sectors:

Key outcomes from the 83rd Marine Environment Protection Committee (MEPC83) by Team Leader Dae-jung Hwang of KMC
Biofuel utilisation and demonstration cases by Manager Dae-sik Seo of HMM
Current usage status and challenges of B100 biofuel by Manager Min-guk Jang of G-Marine Service
Market outlook for marine biofuels by Chief Surveyor Jae-hoon Lim of DNV
Case studies of biofuel applications for marine engines by Team Leader Jae-yup Seo of HD Korea Shipbuilding & Offshore Engineering
Global marine biofuel market trends and bunkering developments by Senior Manager Yul-kyung Hong of Hyundai Fuels

Photo credit: Ulsan Port Authority
Published: 25 April, 2025

Shipping Corridor

SFOC report proposes green methanol-fuelled Korea-Europe shipping corridor

Corridor will run between Pyeongtaek Port—the largest hub for automobile imports and exports in South Korea—and major European ports of Bremerhaven, Antwerp, Zeebrugge, and Southampton.

Published

9 hours ago

April 25, 2025

Admin

SFOC report proposes green methanol-fuelled Korea-Europe green shipping corridor

Korean non-government organisation Solutions for Our Climate (SFOC) on Wednesday (23 April) released a report proposing the establishment of a green methanol-fuelled South Korea-Europe shipping corridor.

The proposed corridor will run between Pyeongtaek Port—the largest hub for automobile imports and exports in South Korea—and major European ports of Bremerhaven, Antwerp, Zeebrugge, and Southampton, presenting strategic pathways for the decarbonization of the maritime sector.

South Korea has announced its “Greenship-K Program” to accelerate the adoption of eco-friendly vessels and set a national goal to achieve a 100% reduction in greenhouse gas (GHG) emissions from shipping by 2050.

Focusing on a green methanol-fuelled Pure Car and Truck Carrier (PCTC) operation model, the report quantitatively assessed the potential for greenhouse gas reduction along key routes. Notably, the Bremerhaven–Pyeongtaek route alone is estimated to reduce more than 1.4 million tonnes of CO₂ emissions annually, given its high cargo volume.

The report proposed the adoption of green methanol as the primary fuel for the corridor, with a long-term goal to transition toward e-methanol. This shift is expected to reduce CO₂ emissions by more than 70% compared to conventional fossil fuel use.

Beyond fuel switching, the report emphasised the importance of securing a stable green fuel supply chain, establishing supportive legal and institutional frameworks, and fostering close public-private cooperation among shipping companies, cargo owners, port operators, and fuel suppliers to make the corridor a viable reality.

“With these foundational elements in place, Pyeongtaek Port is well positioned to become the starting point of Korea’s transition toward a decarbonised maritime sector,” SFOC said.

Note: The full report by SFOC can be viewed here and it is also available in Korean here.

Photo credit: Solutions for Our Climate
Published: 25 April, 2025

Biofuel

MASH Makes powers first vessel trial with bio bunker fuel from carbon-negative process

NORDEN and MASH Make completed the world’s first commercial vessel trial using B20 blend produced from a carbon-negative process; vessel operated on a roundtrip voyage from Singapore to Brazil.

Published

9 hours ago

April 25, 2025

Admin

MASH Makes powers first vessel trial with bio bunker fuel from carbon-negative process

Global shipping company DS NORDEN and renewable energy company MASH Makes on Thursday (21 April) successfully completed the world’s first commercial vessel trial using biofuel produced from a carbon-negative process.

The vessel operated on a roundtrip voyage from Singapore to Brazil, successfully using 65 tonnes of fuel blend with 20% MASH Makes biofuel in its auxiliary engine.

“This trial proves that MASH Makes’ biofuel is suitable for marine engines, and it marks an important milestone towards bringing the fuel into our operation,” said Henrik Røjel, Head of Decarbonisation and Climate Solutions, NORDEN.

The trial demonstrated that MASH Makes’ biofuel is technically a drop-in fuel, compatible with existing systems and capable of reducing reliance on fossil fuels in specific marine applications.

The results point to a practical path for shipowners to cut emissions without waiting for new infrastructure.

If the new agreement by the International Maritime Organization (IMO) to cap and price excess emissions globally is ratified in October 2025, MASH Makes offers a solution that enables shipowners to start significantly reducing their emissions well before the agreement takes effect in 2028.

“Our biofuel meets the technical requirements of the shipping industry and can be used in unmodified engines. It’s a seamless, scalable alternative ready to cut emissions today,” said MASH Makes CEO Jakob Bejbro Andersen.

Unlike emerging fuels like green hydrogen or ammonia, which require new infrastructure, MASH Makes biofuel integrates directly with existing systems.

NORDEN acquired a minority stake in MASH Makes in 2023 to strengthen its future supply of renewable fuels. Since the acquisition, the two companies have worked closely together to validate the biofuel for marine usage.

Photo credit: DS NORDEN
Published: 25 April, 2025