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ENGINE: Europe & Africa Bunker Fuel Availability Outlook

ARA gasoil stocks at one-year highs, Russian imports banned; bunkering partly halted in Algeciras, Ceuta and Malta; tighter availability amid strong demand in Nacala.

Published

10 months ago

February 9, 2023

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:

8 February 2023

ARA gasoil stocks at one-year highs, Russian imports banned
Bunkering partly halted in Algeciras, Ceuta and Malta
Tighter availability amid strong demand in Nacala

Northwest Europe

Prompt availability of LSMGO is normal in Rotterdam and in the wider ARA bunkering hub. Recommended lead times for VLSFO delivery in Rotterdam are about 4-5 days, and HSFO requires 5-6 days, a source says.

The ARA’s independently held gasoil stocks have risen to one-year highs this month as importers pulled large volumes from Russia just before the EU's ban on imports of refined Russian oil products kicked in from 5 February.

The region’s gasoil stocks - which include diesel and heating oil - have averaged 9% higher at the beginning of February than in January. And they have swelled by 56% from a low in June, when EU member states agreed to ban refined Russian oil imports.

Saudi Arabia and Russia were the ARA's two top sources of diesel and gasoil imports in January, accounting for 22% of the ARA's total imports each, according to cargo tracker Vortexa. That was down from 31% from Russia in December, while sharply up from 4% from Saudi Arabia.

The ARA’s independent fuel oil stocks have averaged 3% lower at the start of February than in January and have remained below their five-year average position for the year.

Around 10% of the ARA's fuel oil imports came from Russia in December, with larger volumes from the UK (15%) and Denmark (14%). The UK was overwhelmingly the ARA's biggest source in January, with 24% its total, while it did not import any fuel oil cargoes from Russia, according to Vortexa.

In Germany’s Hamburg, prompt supply of VLSFO and LSMGO is said to be normal. HSFO delivery prospects remain subject to enquiry there, a source says.

Bunker fuel supply is normal-to-tight for prompt dates off Skaw, requiring lead times of up to seven days, a source says. Availability of HSFO for prompt dates is tight, the source adds.

All operations at in the Turkish Port of Iskenderun have been halted after a deadly earthquake hit Turkey and Syria on Monday morning. LSMGO is typically supplied by three suppliers in the port, and VLSFO by one.

Meanwhile, bunkering is progressing as normal in Istanbul, a source says.

Mediterranean

Supply of LSMGO is said to be normal for prompt dates in Gibraltar, while VLSFO and HSFO deliveries are subject to enquiries.

Lead times of 3-4 days are advised for LSMGO delivery in Gibraltar, and around five days for VLSFO. HSFO may require a longer period of around 5-6 days, a source says.

Meanwhile, delivery of stems in Gibraltar Strait ports will be subject to weather conditions in the coming days, a source say.

Bunker operations were suspended at the outer anchorage in Algeciras on Wednesday due to rough weather, according to port agent MH Bland. Bunkering was going ahead at Algeciras' inner anchorage, while three suppliers were running 4-18 hours behind schedule in the port, MH Bland says.

Suppliers in Ceuta have also been struggling to deliver stems at anchorage. One bunker barge was suspended operations on Wednesday due to bad weather, according to shipping agent Jose Salama & Co. Two vessels were waiting to receive bunkers at anchorage in Ceuta on Wednesday, and four more vessels were due to arrive.

Bunker fuels availability is said to be normal in Ceuta and Algeciras, and some suppliers can offer prompt deliveries. But forecast of bad weather between Thursday and Saturday could complicate deliveries there, sources say.

Bunkering has been limited in Malta this week, according to Seatrans Shipping agency. Only one in six bunkering areas off Malta are open for supply due to rough weather conditions. Some bunker backlogs have been reported this week, Seatrans says.

Supply of VLSFO and LSMGO is said to be normal in and off Malta, but deliveries are subject to weather conditions, a source says.

Availability across all grades is normal in the Greek port of Piraeus, a source says.

Prompt supply of VLSFO is normal in the Portuguese port of Sines.

Africa

Bunkering resumed in Algoa Bay on Wednesday, after being suspended on Tuesday due to rough weather, according to Rennies Ships Agency. Bad weather is forecast over the weekend, which could disrupt bunker operations in the bay again. 18 vessels are scheduled to arrive for bunkers in Port Elizabeth and Algoa Bay for the rest of the week, Rennies says.

Bunker fuel supply is said to be normal in Algoa Bay and normal-to-tight in Durban. Recommended lead times for VLSFO and LSMGO deliveries in Durban are around seven days, a source says.

Meanwhile, supply of the two grades is currently tight in Mozambique’s Nacala port amid good demand, a source says. Bunker calls in Nacala have gradually increased from three vessels in each of the first two weeks of January, to 5-6 vessels in each of the last two weeks. Five vessels are expected to arrive for bunkers in Nacala this week.

Supply of VLSFO and LSMGO is said to be normal in Mozambique’s capital port city of Maputo. Four vessels are due to arrive for bunkers there this week.

Bunkering deliveries are going ahead as normal across the two ports in Mozambique.

By Shilpa Sharma

Photo credit and source: ENGINE
Published: 9 February, 2023

Vessel Arrest

Malaysia: MMEA detains tanker for illegal anchoring in East Johor waters

Panama-registered vessel was operated by 17 crew members, aged between 21 to 58 years, from Pakistan, India and Bangladesh.

Published

21 hours ago

November 29, 2023

Admin

Malaysia: MMEA detains tanker for illegal anchoring in East Johor waters

The Malaysian Maritime Enforcement Agency (MMEA) on Tuesday (28 November) said a Panama-registered tanker has been detained for illegally anchoring in East Johor waters on 27 November.

MMEA Tanjung Sedili Zone acting director Maritime Cmdr Mohd Najib Sam said the tanker was detained by a patrol boat at 11am at 15.8 nautical miles northeast of Tanjung Penawar.

The captain of the vessel failed to produce any documents that permission had been obtained to anchor in Malaysian waters.

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The vessel was operated by 17 crew members, aged between 21 to 58 years, from Pakistan, India and Bangladesh.

The case will be investigated under Section 491B(1)(L) of the Merchant Shipping Ordinance 1952 for anchoring without permission. If found guilty, individuals may be fined not exceeding MYR 100,000 or face an imprisonment term of not more than two years, or both.

Manifold Times previously reported law firm Oon & Bazul LLP sharing on steps shipowners should keep in mind before anchoring and conducting STS operations in Malaysian waters to avoid detention.

Photo credit: Malaysian Maritime Enforcement Agency
Published: 29 November, 2023

Alternative Fuels

DNV paper outlines bunkering of alternative marine fuels for boxships

Third edition of its paper series focuses on LNG, methanol and ammonia as alternative bunker fuel options for containerships; explores bunkering aspects for LNG and methanol.

Published

21 hours ago

November 29, 2023

Admin

DNV paper outlines bunkering of alternative marine fuels for boxships

Classification society DNV recently released the third edition of its paper series Alternative fuels for containerships, focused on LNG, methanol and ammonia as alternative bunker fuel options for containerships.

In its updated paper series, DNV examined the different alternative marine fuel options and provided an overview of the most important technical and commercial considerations for the containership sector.

It explored the bunkering technology for LNG, bunkering infrastructure for methanol, and availability and infrastructure of ammonia.

Building on the foundation laid in the second edition, which focused on the most important aspects of methanol as a fuel, this latest third edition delves deeper – exploring the technical intricacies and commercial considerations associated with adopting methanol as an alternative fuel for containerships.

Furthermore, it provides an overview of crucial aspects related to ammonia and discusses its potential as an alternative fuel for containerships.

Amongst others, the new edition of the paper looks at the following aspects:

Technical design considerations for methanol
Commercial implications of adopting methanol as an alternative fuel
Ammonia's potential as an alternative fuel
Availability, infrastructure and ship fuel technology for ammonia
Major updates based on the latest IMO GHG strategy decisions at the MEPC 80 meeting

Note: The third edition of DNV’s full paper titled Alternative Fuels for Containerships can be found here.

Photo credit: DNV
Published: 29 November, 2023

Alternative Fuels

EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Tool is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering.

Published

22 hours ago

November 29, 2023

Admin

EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Lloyd’s Register (LR) Maritime Decarbonisation Hub and Environmental Defense Fund (EDF), in collaboration with Arup, on Tuesday (28 November) introduced the Sustainable First Movers Initiative Identification Tool, a system to help shipping stakeholders align investment decisions that support the maritime energy transition away from fossil fuels.

The tool, which is presented in a preliminary findings report – The Potential of Ports in Developing Sustainable First Movers Initiatives – scores a port’s potential to produce and bunker electrofuels while delivering local environmental and community benefits in alignment with the global temperature target of 1.5 degrees Celsius set by the Paris Agreement.

“Ports can play an important role in kickstarting shipping’s decarbonisation process even before global policies are established,” said Marie Cabbia Hubatova, Director, Global Shipping at Environmental Defense Fund.

“By considering the impact sustainable first mover initiatives can have on port-side communities, climate, environment and economies, resources can be better directed to locations where these initiatives will make the biggest difference.”

With close to two billion people living near coastal zones globally, the role of, and impacts on local port communities must be intentionally considered as the sector decarbonises globally. Ports can play a crucial role in ensuring shipping decarbonisation efforts are done in a way that has positive impacts on port communities.

The preliminary phase of the Sustainable First Movers Initiative Identification Tool analyses 108 ports in the Indo-Pacific region according to five criteria including land suitability, air quality, renewable energy surplus, economic resilience and ship traffic.

It is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering. The combined criteria and scenario evaluation determines which ports have the greatest potential (high potential) for sustainable first mover initiatives to lead to significant emissions reductions and positive impacts in nearby communities, such as improved air quality and economic resilience.

“The transition to clean energy supply for shipping can be achieved only if stakeholders act together. Identifying potential port locations is the first step in this process,” said Dr Carlo Raucci, Consultant at Lloyd’s Register Maritime Decarbonisation Hub. “This approach sets the base for a regional sustainable transition that considers the impacts on port-side communities and the need to avoid regions in the Global South lagging behind.”

Regions in the Global South are fundamental in driving the decarbonisation of shipping. To make this transition effective, the rate at which different countries adopt and scale up electrofuels must be proportional to the difference in capital resources globally to avoid additional costs being passed on to local communities. Sustainable first mover initiatives can play an important role in making this happen by ensuring the sector’s decarbonisation is inclusive of all regions and by engaging all shipping stakeholders, including port-side communities.

“There’s a huge opportunity for early adopter shipping decarbonisation initiatives to unlock benefits for people and planet – shaping the way for a more equitable transition in the 2030s,” said Mark Button, Associate, Arup. “Our collective approach shows that taking a holistic view of shipping traffic, fuel production potential and port communities could help prioritise action at ports with the greatest near-term potential.”

The tool can be customised according to stakeholders’ needs and goals and is dependent on scenario desirability. The next phase of this work will include the selection and detailed assessment of 10 ports to help better understand local needs and maximise the value offered by sustainable first mover initiatives.

LR and EDF carried out a joint study on ammonia as shipping fuel, and LR and Arup have collaborated on The Resilience Shift study focused on fuel demand for early adopters in green corridors, ports, and energy systems, amongst many other projects.

Photo credit: Lloyd’s Register
Published: 29 November, 2023