Bunker Fuel

ENGINE: Europe & Africa Bunker Fuel Availability Outlook (22 May 2024)

Availability is normal in the ARA; subdued bunker demand off Malta; VLSFO runs dry in Nacala and Maputo.

Published

8 months ago

May 23, 2024

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:

Availability is normal in the ARA
Subdued bunker demand off Malta
VLSFO runs dry in Nacala and Maputo

Northwest Europe

Bunker fuel availability is normal in Rotterdam and in the wider ARA hub. Lead times of 3-5 days are recommended to ensure full coverage from suppliers, a trader said. These lead times are roughly unchanged from the previous week.

The ARA’s independently held fuel oil stocks have averaged 4% higher so far this month than across April, according to Insights Global data. Higher imports have helped boost fuel oil stocks in the ARA. The region has imported 340,000 b/d of fuel oil so far this month, up from 252,000 b/d of fuel oil imported in April, according to data from cargo tracker Vortexa.

Nigeria has emerged as the ARA's biggest fuel oil import source so far this month, accounting for 13% of the region’s total imports. Algeria and Lithuania have ranked second, each accounting for 12% of the total imports. Other import sources have been the UK (11%) and Denmark (10%).

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have increased by 8% so far this month.

The port staff and dockers' unions in the French ports of Saint-Nazaire and Montoir have called for industrial strike action for periods this week and the next, according to GAC Hot Port News. These strikes are planned for this Thursday, as well as next Monday and Wednesday. Each strike is expected to last four hours daily and could impact bunkering in these ports.

Bunker fuel availability is normal in Germany’s port of Hamburg. Prompt delivery dates are available for all bunker grades in the port, with lead times of 3-5 days advised by a trader.

Off Skaw, very prompt supply can be tight, while supply is relatively better for non-prompt delivery dates. A trader recommends lead times of 7-10 days for all grades. Adverse weather is forecast off Skaw on Wednesday and Thursday, which may complicate bunkering in the area.

Mediterranean

Availability is normal across all grades in Gibraltar. Most suppliers can offer prompt delivery dates for all grades in the port, with short lead times of 2-4 days generally recommended for all grades in the port, according to a trader. Seven vessels were waiting for bunkers in Gibraltar on Wednesday, down from eight on Tuesday, a source said.

The weather forecast predicts calm conditions for the remainder of the week, which could potentially ease congestion in Gibraltar.

Bunker fuel availability is normal in the Canary Islands’ port of Las Palmas. Lead times have stayed consistent since last week, with traders advising 4-6 days for all grades. But weather disruptions are expected in the area starting next Tuesday, which may hamper bunkering.

Bunker demand has been very quiet in other Mediterranean ports like Piraeus, Malta Offshore and Istanbul, a trader said, adding that demand has been very limited in these ports.

Availability is good in the Greek port of Piraeus, according to a trader. Lead times of 3-4 days are recommended for all bunker grades in the port. Adverse weather is forecast to hit the port on Thursday, which may impact bunkering.

Off Malta, bunkering was proceeding smoothly on Wednesday amid normal weather conditions. Bunker fuel availability is good there, a trader told ENGINE. Lead times of 3-4 days are advised for all grades.

Bunker fuel availability is good in Istanbul, a trader said, with lead times of 3-4 days advised for all grades. Calm weather is forecast for the rest of the week, allowing bunkering to take place normally.

Africa

Availability is normal in the South African ports of Richards Bay and Durban for VLSFO. Lead times of 7-10 days are recommended by traders for optimal coverage in both ports. The earliest delivery date for VLSFO in Durban with one supplier is 1 June a source said.

LSMGO availability is normal in Durban. A trader advises similar lead times of 7-10 days for the grade in the port. Strong wind gusts of up to 25 knots are forecast in Durban on Sunday, which could hamper bunkering. Also, rough weather may impact bunkering in Richards Bay.

Prompt VLSFO supply is dry in Mozambique’s port of Nacala amid high demand for the bunker grade, a source said. HSFO supply has also tightened in the port. On the other side, LSMGO supply is relatively better compared to HSFO and VLSFO. Demand for LSMGO has been largely steady.

Like Nacala, high VLSFO demand has caused supply shortages for prompt supply in Maputo. LSMGO demand has been stable in the port, with good supply available, a source told ENGINE.

By Manjula Nair

Photo credit and source: ENGINE
Published: 23 May 2024

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China: Zhoushan Port achieves 7.26 million mt annual bunker volume for 2024

Zhoushan Hi-Tech Zone Administrative Committee highlighted the progress Zhoushan Port has made in the past year including actively planning to build an alternative fuel bunkering centre.

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China: Zhoushan Port achieves 7.26 million mt annual bunker volume for 2024

Zhoushan Hi-Tech Zone Administrative Committee on Friday (10 January) said Zhoushan, the fourth largest bunkering port of the world, delivered 7.26 million metric tonnes (mt) of marine fuel in 2024.

This marked about a 3% increase from 7.04 million mt in 2023.

The committee also highlighted the progress Zhoushan Port has made in the past year including actively planning to build an alternative fuel bunkering centre.

It has successfully obtained approval for the national biodiesel promotion and application pilot project. The construction of a project to produce an annual 1 million mt of marine biodiesel has begun.

The first methanol vehicle-to-ship pilot was carried out, and the first methanol bunkering barge in Zhoushan was officially built and is expected to be put into use by the end of 2025.

The port has also improved the fuel supply efficiency of various bunkering anchorages in Zhoushan including Tiaozhumen Anchorage adding three bunkering anchorages on top of the original five and has successfully carried out night bunkering operations.

Xiushandong and Mazhi anchorages have added a total of three new bonded bunkering anchorages, which can implement all-weather and fully automatic anchorage reservations, and provide advance reservations and priority refueling services for large ships and large orders.

The committee also highlighted Dong Fang Zhao Yang becoming the first domestic bunkering barge to obtain the mass flow meter system certification under the ISO22192:2021 standard. The barge conducted a successful pilot for the bunkering of bonded fuel oil using a mass flow meter at Xiushandong Anchorage on 9 December.

A spokesperson of the committee said Zhoushan will focus on promoting alternative bunker fuels such as biofuel and LNG and accelerating the completion of methanol refuelling safety assessments.

Photo credit: Zhoushan Hi-Tech Zone Administrative Committee
Published: 14 January, 2025

Bunker Fuel

Argus Media: Singapore bunker prices rise to multi-month highs

VLSFO prices on a delivered basis in Singapore jumped by $16.7/t to $590.72/t, the highest since 24 October 2024; HSFO prices jumped by $34.67/t to $507.67/t dob, the highest since 26 July 2024.

Published

23 hours ago

January 14, 2025

Admin

Bunker fuel prices in the port of Singapore touched multi-month highs today, supported by a rally crude futures.

13 January 2025

Ice Brent Singapore crude reached $81.23/bl by close of trading in the port city, following the announcement of sweeping sanctions by the US administration on Russian energy exports. Shipowners and bunker buyers in Singapore were cautious about procurement given the elevated prices. Many pushed back their bunker buying, preferring to monitor near-term market developments.

Very-low sulphur fuel oil (VLSFO) prices on a delivered basis in Singapore jumped by $16.7/t to $590.72/t, the highest since 24 October 2024. Deals concluded by 19:00 Singapore time had touched $599/dob and could breach $600/t in the coming days if strength in the energy complex continues.

"Market is firm… I would not dare to fix anything today," a ship owner said, adding that "buyers should be very careful" when making procurement decisions. Another vessel owner said its earliest VLSFO bunker requirement would be for delivery from 26 January, and it was not looking to trade at the moment.

"It is very difficult to know how things will proceed, but think it might move higher," said a UK-based bunker trader.

VLSFO supply availability is limited, which could further support upward movement in prices in the coming days.

High sulphur fuel oil (HSFO) prices jumped by $34.67/t today to $507.67/t dob, the highest since 26 July 2024. Marine gasoil (MGO) prices were at a six-month high $731/t dob in Singapore, up by $30/t from the previous session.

The upside in crude futures was reflected in marine biodiesel prices, with B24 rising in Singapore. B24, which is a blend of 24pc used cooking oil methy ester (Ucome) and 76pc VLSFO, were assessed by Argus$14-15/t higher at $721-726/t dob.

Traders said B24 prices will follow the trend in VLSFO cargo prices, but spot liquidity may remain thin.

"Today people are still trying to figure out what right value is," said a key shipowner and trader, adding that prices could rise further this week.

By Mahua Chakravarty and Cassia Teo

Photo credit and source: Argus Media
Published: 14 January, 2025

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Singapore-based EPS to invest in SulNOx, adopt fuel conditioner on at least 30 vessels

EPS will adopt SulNOxEco on a minimum of 30 vessels for a minimum of 18 months use per vessel following an extensive eight-month successful evaluation of SulNOxEco on various EPS-managed vessels.

Published

23 hours ago

January 14, 2025

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Singapore-based EPS to invest in SulNOx, adopt fuel conditioner on at least 30 vessels

Maritime green tech firm SulNOx on Monday (13 January) said it has signed an agreement with Singapore-based Eastern Pacific Shipping, which encompasses both investment into SulNOx and a major new product supply contract for its SulNOxEcoTM fuel conditioner (SulNOxEco).

The agreement follows an extensive eight-month successful evaluation of SulNOxEco on various EPS-managed vessels including container ships, tankers, bulk and gas carriers. EPS Ventures Pte. Ltd. (EPSV) will also become a strategic shareholder in SulNOx.

Under the agreement, EPS, which manages a diverse fleet of over 300 vessels on water and on order, will adopt SulNOxEco on a minimum of 30 vessels for a minimum of 18 months use per vessel.

EPS will also provide information in relation to the results of the evaluation, which the Company will be able to use in its marketing activities, along with the ongoing support of EPS.

In addition, EPS will also collaborate with and act as an introducer for SulNOxEco, to some of the world’s largest shipping companies. The agreement itself will generate significant revenue and secure committed minimum product volumes of 250,000 litres. Further, the Board anticipates attracting additional customers and driving substantial further revenue growth.

Cyril Ducau, Chief Executive Officer of EPS, said, “This partnership with SulNOx is a significant step towards achieving EPS’s long-term sustainability objectives. By enhancing our operational efficiency and reinforcing our commitment to meeting global environmental standards, this collaboration further solidifies our position as a proactive leader in sustainable shipping practices.”

Radu Florescu, Chairman of SulNOx, said, “Signing the marquee shipping name of EPS after an extensive evaluation period proves the effectiveness of SulNOx products beyond doubt at a time when the industry is crying out for solutions to reduce fuel consumption and associated emissions against a backdrop of increasing regulation.”

“With this partnership, not only have we secured substantial, committed revenues, but there is also significant additional potential revenue from EPS’ introductions to some of the world’s largest fleets. This transaction marks a new and transformative era for the SulNOx Group, and we look forward to a long and mutually beneficial partnership with EPS, delivering the energy transition together.”

Photo credit: SulNOx
Published: 14 January, 2025