Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Rotterdam refinery maintenance could curb fuel supply; HSFO still unavailable with a supplier in Las Palmas; supply normal in South Africa, rough weather forecast.

Published

7 months ago

March 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 March, 2023

Rotterdam refinery maintenance could curb fuel supply
HSFO still unavailable with a supplier in Las Palmas
Supply normal in South Africa, rough weather forecast

Northwest Europe

Supply of LSMGO is said to have improved from last week in the ARA hub, but securing prompt deliveries can still be difficult there, sources say. Lead times of 2-3 days are advised for LSMGO deliveries in the region, which is longer than usual.

Prompt supply of VLSFO is also said to be tight in the region because of barge loading delays at terminals that has had a knock-on impact on fuel availability and bunker deliveries, sources say. At least three suppliers can typically accommodate prompt stems in the spot market, a source says, while several others with fewer barges have felt more pressure on their barge delivery capacity and had more limited availability.

Buyers will not necessarily incur prompt price premiums in the ARA, but there are not as many discounts in the market as before, so prompt fixing levels are generally closer to initial offer levels.

Meanwhile, the ARA’s independently held fuel oil and gasoil stocks have both averaged 2% higher at the beginning of this month than in February, according to Insights Global data. Stocks of both fuel groups have risen above their five-year average position for the time of the year.

This comes as ARA importers sourced significant volumes of gasoil and diesel from Saudi Arabia, China and India to replace the Russian product in February, and from Singapore, Qatar and Turkey so far in March. They have also sourced most of their fuel oil imports from the UK, Denmark, Greece, Poland and Baltic countries in recent weeks, going by Vortexa cargo tracking data.

However, availability of LSMGO is expected to tighten in the ARA this month as Shell’s Shell Energy and Chemicals Park Rotterdam refinery will go into a partial maintenance. According Wood Mackenzie, one of the refinery's crude distillation units of 200,000 b/d will go offline for maintenance between 10 March and 19 April. The refinery has two crude distillation units with a total nameplate capacity of around 400,000 b/d capacity.

With the refinery operating at a reduced capacity, this could mean less fuel oil and gasoil production. A source says that LSMGO could come under pressure from less supply, and expects more upward price pressure on delivered bunkers.

In Germany’s Hamburg, supply of VLSFO and LSMGO is said to be normal, requiring lead times of around 5-6 days, a source says. Delivery prospects for HSFO are subject to enquiries, the source adds.

VLSFO and LSMGO availability is normal-to-tight for delivery off Skaw, but HSFO supply is said to be tight there, a source says. Lead times of up to seven days are advised for VLSFO and LSMGO deliveries there.

Both VLSFO and LSMGO grades have been in steady availability in Portugal's Lisbon and Sines, a source says, and the impact from the Russian phase-out has been minimal.

Mediterranean

Bunker fuels availability is said to be tight prompt in Gibraltar. Prompt supply of HSFO is particularly tight there, a source says. Lead times of up to six days are advised for deliveries in Gibraltar across all fuel grades.

A supplier in Las Palmas is “dry” on HSFO and the port’s benchmark is still at large premiums over Gibraltar Strait ports. The supplier is unable to estimate an earliest delivery date for HSFO in Las Palmas at this point. Another supplier has stocks of the grade to offer, and a third is mostly supplying on a term contract basis, several sources say.

There are some delays at a terminal in Ceuta, with two vessels waiting to berth, according to Jose Salama & Co. Another 11 vessels are scheduled to arrive for bunkers across the port’s berths and anchorages today. There is a minimal backlog in Gibraltar, with one vessel waiting for a delivery barge to become ready, MH Bland says.

Bunker fuel availability is currently normal off Malta with recommended lead times of about five days, a source says.

VLSFO is tight in the Greek port of Piraeus, while availability of HSFO and LSMGO is said to be normal there.

Africa

Supply of VLSFO and LSMGO is said to be normal in Durban and Algoa Bay, requiring lead times of up to seven days, sources say.

Algoa Bay has gale and heavy swells forecast on Wednesday and again on Saturday. This could hold back some of the 21 vessels scheduled to arrive for bunkers this week. Bunkering was in progress on Wednesday morning, with two vessels receiving fuel and another two in line, Rennies Ships Agency says.

Bunker operations are also running smoothly in Mozambique’s Nacala and Maputo ports, where a total of seven vessels are due to arrive for bunkers this week - the same as last week.

By Shilpa Sharma

Photo credit and source: ENGINE
Published: 8 March, 2023

Milestone

Singapore retains titles as Best Global Seaport and Best Seaport in Asia

Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 AFLAS Awards.

Published

1 day ago

September 29, 2023

Admin

Singapore retains titles as Best Global Seaport and Best Seaport in Asia

The Maritime and Port Authority of Singapore on Friday (29 September) said the Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 Asian Freight, Logistics and Supply Chain (AFLAS) Awards.

These accolades recognise the contributions by the Port of Singapore serving as a key node in the global supply chain, and Singapore’s leadership in driving maritime decarbonisation and transformation.

The annual AFLAS Awards is organised by freight and logistics publication, Asia Cargo News, to honour leading service providers in the supply chain community for demonstrating leadership as well as consistency in service quality, innovation, customer relationship management and reliability. Winners were determined by votes cast by readers of the publication.

Mr Chee Hong Tat, Acting Minister for Transport and Senior Minister of State for Finance, said: “Singapore is honoured to be named the Best Global Seaport and Best Seaport in Asia. These awards are the result of the shared effort and strong collaboration between the Government, industry, unions and workers. We will continue to grow our port as an efficient, sustainable, and trusted node in global supply chains.”

Mr Teo Eng Dih, Chief Executive of MPA, said: “These awards are testament to the partnership and collaboration between Maritime and Port Authority of Singapore (MPA) with industry and international partners, the research and enterprise community, as well as unions. MPA remains committed to fostering an environment that encourages enterprise, innovation, and talent development.”

“We will continue to work with our partners to enhance Singapore’s connectivity, advance digitalisation efforts, and accelerate the decarbonisation of international shipping in line with the 2023 IMO strategy on reduction of GHG emissions from ships.”

Photo credit: Maritime and Port Authority of Singapore
Published: 29 September, 2023

Employment

Melvin Lum appointed as KPI OceanConnect Global Accounts Commercial Director in Singapore

Lum will take on the position of Commercial Director from Thomas Lee who was recently promoted to Head of APAC in a management restructure within KPI OceanConnect.

Published

1 day ago

September 29, 2023

Admin

Melvin Lum appointed as KPI OceanConnect Global Account Commercial Director in Singapore

Global marine energy solutions provider KPI OceanConnect on Thursday (28 September) announced the appointment of Melvin Lum as Commercial Director for its Global Accounts team in Singapore.

Lum will take on the position of Commercial Director from Thomas Lee who was recently promoted to Head of APAC in a management restructure within KPI OceanConnect.

The Global Accounts team is an expert unit within KPI OceanConnect, specialised in providing long-term, tailored fuel strategy solutions to a portfolio of Key Accounts on a global scale. Dedicated regional teams located in London, Houston and Singapore work seamlessly across the world and around the clock to support their clients.

Lum joined KPI OceanConnect in 2021 as Senior Key Account manager and has made a significant contribution to the development of the team and optimisation of the daily operations of the unit in Singapore. Lum has vast experience across the supply chain and previously worked with TotalEnergies, Glencore and Global Energy Group prior to joining KPI OceanConnect.

Henrik Zederkof, Head of Global Accounts at KPI OceanConnect, said: "It is always a pleasure to witness the growth of our team members, and Melvin's progression is no exception. I have full confidence in Melvin's expertise, ability to lead the unit and dedication to his team. I look forward to seeing the progress of Melvin and his team, which will undoubtedly bring significant value to our numerous partners and the wider organisation.”

"Melvin will assume a pivotal role within the Global Accounts management team, leveraging his extensive experience in supply chain management and profound insight into emerging technologies. In his new role, Melvin will further enhance our team's skill set, aligning them with our ongoing objectives of supporting our partners in their green transition and digitalisation endeavours."

Melvin Lum, Commercial Director of KPI OceanConnect Global Accounts in Singapore, said: "I am very appreciative of the support and confidence from our management team as I take on this exciting new role. I am enthusiastic to work with the team as we continue to deliver an exceptional experience to our partners and stakeholders with dedication, innovation and passion."

Photo credit: KPI OceanConnect
Published: 29 September, 2023

Biofuel

TotalEnergies Marine Fuels renews ISCC EU certification for bio bunker fuel

Firm’s operations teams in Singapore and Geneva successfully renewed its ISCC EU sustainability certification for the supply of biofuel bunkers, says Louise Tricoire, Vice President.

Published

1 day ago

September 29, 2023

Admin

TotalEnergies Marine Fuels renews ISCC EU certification for bio bunker fuel

Louise Tricoire, Vice President of TotalEnergies Marine Fuels recently said the firm’s operations teams in Singapore and Geneva successfully renewed its International Sustainability and Carbon Certification (ISCC) EU sustainability certification for the supply of biofuel bunkers.

“This means that TotalEnergies Marine Fuels can continue sourcing and supplying marine biofuels in accordance with EU renewable energy regulations ensuring the highest sustainability standards,” she said in a social media.

“It's the third year in a row that we have successfully renewed this certification, after a deep and comprehensive audit which showed zero non-conformity.”

She added marine biofuels have grown in demand among shipping companies that want to cut greenhouse gas emissions immediately.

“TotalEnergies Marine Fuels offers marine biofuels commercially in Singapore and we are starting in Europe. This certification enables us to accompany our customers in their decarbonisation journey with the best standard solutions available today.”

Photo credit: TotalEnergies Marine Fuels
Published: 29 September, 2023