Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

VLSFO, HSFO supply slightly tight in Gibraltar Strait ports; Russia becomes the ARA’s biggest fuel oil source again; Bunker supply normal in Durban and Algoa Bay.

Published

2 years ago

October 20, 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:

19 October 2022

VLSFO, HSFO supply slightly tight in Gibraltar Strait ports
Russia becomes the ARA’s biggest fuel oil source again
Bunker supply normal in Durban and Algoa Bay

Northwest Europe

Prompt supply of LSMGO and VLSFO is said to be normal in Rotterdam and other ports in the ARA hub, sources say. Recommended lead times for the two grades in Rotterdam are 3-4 days, while HSFO requires longer lead times of 5-7 days, a source says.

Meanwhile, independently held fuel oil and gasoil inventories in the ARA dropped last week, according to Insights Global data. The region’s fuel oil stocks decreased by 460,000 bbls to 6.65 million bbls in the week to 13 October and remained below their five-year average position.

Russia has regained its position of top fuel oil exporter to the ARA, according to Vortexa cargo tracking data. Most of the region’s fuel oil imports have come from Russia so far in October, and some quantities have arrived from other countries including Estonia, Colombia, France, Bulgaria and Poland.

This came as a surprise as there were no Russian fuel oil volumes imported to the ARA in July, August and September, Vortexa data shows. EU countries have agreed to phase out imports of Russian crude oil and oil products towards embargo deadlines by December and February, respectively. This means that there is still scope for fuel oil and gasoil inflows until February.

The region’s gasoil stocks decreased by a significant 1.43 million bbls to 12.38 million bbls last week. And the stocks continue to be far below their five-year average position.

Supply of VLSFO and LSMGO is normal off Skaw, a source says. Recommended lead times for VLSFO and LSMGO deliveries are around seven days. HSFO requires a longer lead time of around 10 days.

Bunker supply is said to be tight across key ports in France including Dunkirk and Le Havre as nation-wide strike over pay hike disputes has hit the supply chain. Workers at ExxonMobil’s two French refineries ended strike late last week, while workers at TotalEnergies' three refineries are still on strike.

Workers at ExxonMobil's 140,000 b/d Fos and 240,000 b/d Port Jerome refineries are gradually returning to work after a strike action that lasted more than three weeks. These refineries could take 2-3 weeks to fully restart operations, a company spokesperson told Reuters.

Mediterranean

Securing prompt delivery of VLSFO can be slightly difficult in Gibraltar, a source says. One supplier in the Gibraltar Strait expects to be low on VLSFO stocks until around 24 October.

Gibraltar’s VLSFO price is at a slight discount to Las Palmas, while at premiums over other regional ports including Algeciras, Malta and Ceuta. Prompt supply of LSMGO is said to be normal in Gibraltar, while HSFO remains subject to enquiries.

Availability of VLSFO and LSMGO is said to be normal in Algeciras, Malta, Ceuta and Las Palmas, sources say.

Bad weather conditions have raised concerns over smooth bunker deliveries in Las Palmas. Swells of 1.5 metres hit Las Palmas on Wednesday. Strong swells are forecast on Thursday and Friday, which could disrupt deliveries at the port's weather-exposed anchorages.

Minimal congestion has been reported in Gibraltar and Algeciras this week, according to port agent MH Bland. Bunker operations are running normally in Ceuta. Eight vessels were due to arrive for bunkers on Wednesday, shipping agent Jose Salama & Cia said.

All bunkering areas are open for supply in Malta. 10 were due to arrive for bunkers in and off Malta on Wednesday, up from seven on Tuesday, according to Seatrans Shipping agency.

Prompt supply of VLSFO and LSMGO is said to be tight in the Spanish port of Huelva, a source says.

Africa

No bunker backlogs were reported in Algoa Bay on Wednesday, according to shipping agent Sturrock Grindrod. Gale-force winds of up to 38 knots are forecast to hit the region on Thursday, which could disrupt smooth bunker deliveries. Eight vessels are scheduled to arrive for bunkers in Port Elizabeth and Algoa Bay this week, Sturrock Grindrod says.

Bunker supply is said to be normal in Algoa Bay. VLSFO continues to be priced considerably lower than in nearby Durban.

In Durban, availability of VLSFO and LSMGO is said to be normal. Recommended lead times for both the grades are around seven days.

Port and rail workers at South Africa’s logistic company Transnet ended a strike this week. Transnet reached a three-year wage deal with one of the two unions that represent the majority of its workers. A resolution to the strikes is expected to ease cargo congestion in Durban and other South African ports, and allow for exports from the country to pick up again.

By Shilpa Sharma

Photo credit and source: ENGINE
Published: 20 October, 2022

Winding up

Singapore: Liquidator of Vanda Marine Services issues notice of dividend

First and final dividend of company is payable from 23 January at Rock Stevenson Pte Ltd, 8 Burn Road, Trivex #16-12, Singapore 369977, according to Government Gazette notice.

Published

5 hours ago

January 23, 2025

Admin

A notice was published in the Government Gazette on Thursday (22 January) regarding the first and final dividend to creditors of Vanda Marine Services Pte Ltd.

The following are details of the notice of dividend of the company:

Name of Company : Vanda Marine Services Pte Ltd(In Creditors’ Voluntary Liquidation)

Unique Entity No. / Registration No. : 201209660C

Address of Registered Office : 8 Burn Road, Trivex #16-12, Singapore 369977

Amount per centum : 23 per centum of all admitted ordinary claims

First and Final or otherwise : First and Final

When payable : 23 January 2025 onwards

Where payable : c/o Rock Stevenson Pte Ltd, 8 Burn Road, Trivex #16-12, Singapore 369977

Manifold Times previously reported several resolutions for Vanda Marine Services, including winding up the company voluntarily, were passed during an extraordinary meeting in March last year.

Photo credit: steve pb from Pixabay
Published: 23 January, 2025

Methanol

China launches first simulation training platform for methanol bunkering operations

Through the real-life simulation, the platform helps ship operators improve their safety management and emergency response capabilities, improving the development of green shipping technologies.

Published

5 hours ago

January 23, 2025

Admin

China launched its first training platform to simulate methanol bunkering operations at Putuo District, Zhoushan on 15 January.

The Methanol Bunkering System Simulation Training Platform V1.0 was created to fill technical gaps in domestic methanol bunkering training and exercises, in light of the growing demand and popularity for methanol in the shipping industry.

Through the real-life simulation, the platform helps ship operators improve their safety management and emergency response capabilities, improving the development of green shipping technologies.

The platform was jointly developed by Zhejiang Ocean-U New Energy System Engineering and Zhejiang Ocean University.

At the press conference , Zhejiang Ocean-U New Energy System Engineering successfully signed its first purchase agreement with Seacon Ships Management (Zhejiang), making Seacon the first customer to purchase the platform service.

Wang Guofeng, chairman of Seacon, said that the platform has great potential in improving crew operating efficiency and safety, and he looks forward to deeper cooperation with Zhejiang Ocean-U New Energy System Engineering in the future.

Professor Lu Jinshu, Vice President of Zhejiang Ocean University, said they will continuously improve the platform to contribute more in the field of green shipping solutions to the industry.

Photo credit: Manifold Times
Published: 23 January, 2025

Hydrogen

Klaipėda Port launches Lithuania’s first hydrogen-powered vessel

Tanker’s power system, which will consist of two electric motors powered by 2,000 kWh batteries and a hydrogen fuel cell system, will enable it to operate for up to 36 hours without additional power charging.

Published

5 hours ago

January 23, 2025

Admin

Klaipėda Port launches Lithuania’s first hydrogen-powered vessel

Klaipėda State Seaport Authority on Wednesday (22 January) said the first ever green hydrogen and electricity-powered ship in Lithuania has been moved from shipyard into water.

Leaving no trace on the environment, it will clean other vessels entering the port, accepting waste from them.

According to the current rules, vessels are obliged to hand over the waste they produce when they arrive and before they leave Klaipėda Port. The Seaport Authority was entrusted with the collection of the waste, and the company decided to use modern and environmentally friendly equipment to further improve the quality of the ship waste collection service.

The tanker’s main function is to collect storm water, sewage, sludge and garbage, as well as to ensure efficient waste management. The ship will be equipped with special tanks and a modern rainwater treatment plant that will allow the treated water to be transferred to the city’s sewage treatment plants. The tanker will be ready to work around the clock and collect up to 400 cubic metres of liquid waste.

The tanker is 42 metres long and 10 metres wide. The ship’s power system will consist of two electric motors powered by 2,000 kWh batteries and a hydrogen fuel cell system. Depending on the intensity of the work, the tanker will be able to operate in the port of Klaipėda for up to 36 hours without additional power charging.

This ship building project with a total value of EUR 12 million (USD 12.5 million) has been commissioned by the Port Authority and is being built by West Baltic Shipyard together with Baltic Workboats under a joint operating agreement.

“We have not only launched a tanker, but also a new approach to port operations – cleaner, smarter and more environmentally friendly. This first ever hydrogen and electricity-powered ship is not only an innovative technological solution, but also an important step in strengthening Lithuania’s image as a modern maritime nation,” said Algis Latakas, Director General of Klaipėda State Seaport Authority.

“At the moment, the tanker is getting used to the seaport water, so to speak, and at the end of the year we expect it to start its important mission of taking care of the clean seaport environment. Such a decision will not leave a footprint on nature, but it will certainly leave a strong mark on our path to a greener future.”

In June last year, a symbolic keel-laying ceremony at the West Baltic Shipyard of the West Baltic Shipyard Group marked the start of the ship’s construction. To date, the hull has been fabricated and painted, with piping, valves, coolers, shaft lines, rudder feathers, heat and fire insulation installed.

Once the tanker is moved into the water, the engine room equipment will be installed, the interior of the wheelhouse will be redecorated, the electrical wiring and the main electrical engines will be installed, the hydrogen system will be installed and other work necessary for the operation of the ship will be carried out.

Photo credit: Klaipėda State Seaport Authority
Published: 23 January, 2025