Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Lithuania becomes the ARA’s top fuel oil import source; strikes curb resupply to French ports; availability improves in Gibraltar.

Published

1 year ago

March 23, 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:

22 March, 2023

Lithuania becomes the ARA's top fuel oil import source
Strikes curb resupply to French ports
Availability improves in Gibraltar

Northwest Europe

Securing prompt supply of VLSFO and LSMGO can be difficult in Rotterdam as delivery capacity is still under pressure with several suppliers there, a source says. Delivery dates are subject to enquiries, a source says.

Recommended lead times for LSMGO delivery in Rotterdam are around three days, a source says. Lead times of around five days are advised for VLSFO deliveries in the ARA region, and up to six days for HSFO.

The ARA’s independently held fuel oil stocks have averaged 8% higher so far this month than in February amid signs of higher net imports.

In the absence of Russian product, ARA cargo traders have sourced their fuel oil imports from the Middle East and some European countries. Lithuania has emerged as the top source for the ARA’s fuel oil imports so far this month, going by the Vortexa data. Fuel oil imports from Lithuania have accounted for 12% of the region’s total imports. Other sources of fuel oil imports have been the UK and Saudi Arabia (11% each), Italy and Poland (9% each).

The region’s gasoil inventories have averaged 1% higher so far this month than in February, supported by huge inflows from the Middle East. Saudi Arabia has become the ARA's top gasoil import source this month and accounted for 37% of its total.

Availability of VLSFO is said to be normal-to-tight for delivery off Skaw, requiring lead times of around six days, a source says. Delivery prospects for HSFO and LSMGO are subject to enquiries, the source adds.

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

In France, extended strike action by refinery workers has impacted bunker fuels supply to French ports, according to sources. Supply is said to be tight in Marseille and Le Havre ports.

In the southern French port of Marseille-Fos, one supplier is unable to load barges at the Fluxel oil terminal as striking workers have blocked supply from the terminal, a source says. Some suppliers can load LSMGO through trucks at the nearby Dépôts Pétroliers de Fos SA (DPF), but access to the terminal could be blocked any time by the striking workers, the source warns.

In the northern French ports of Le Havre and Montoir, one supplier is unable to supply VLSFO by barge. LSMGO supply is possible but depends on how accessible the port is, the source adds.

Workers across sectors in France are protesting the government's plans to reform the country's retirement system, including raising the retirement age from 62 to 64. Protests intensified late last week after the government forced the reform through parliament without a vote. President Emmanuel Macron's government faced a no confidence vote in parliament on Monday, and narrowly survived the motion.

Mediterranean

Supply of HSFO, LSMGO and VLSFO is said to be normal in Gibraltar. One supplier can offer all fuel grades with lead times of around four days, a source says. That is down from recommended lead times of up to six days a fortnight ago.

HSFO supply has also improved off Malta and in the Greek port of Piraeus, a source says.

A bit of congestion was reported in Gibraltar, Algeciras, and Ceuta on Wednesday morning, while no backlog was reported off Malta, according to port agent MH Bland. 12 vessels were scheduled to arrive for bunkers in and off Malta on Wednesday, Seatrans Shipping agency says.

Bunker fuel availability is currently normal off Malta, a source says. Some suppliers can offer prompt deliveries of all the fuel grades.

Bunker operations are limited in Las Palmas amid bad weather conditions. Suppliers have not been delivering stems at Las Palmas’ outer anchorage since Monday due to high swells, MH Bland says. Meanwhile, suppliers are offering bunker deliveries via ex-pipe at berth or by barge at the inner anchorage of the port.

Delays are expected as Las Palmas’ inner anchorage has a limited capacity to bunker one vessel at a time, MH Bland says.

Africa

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

Strong winds and heavy swells are forecast to hit Algoa Bay between Thursday and Friday. This could complicate deliveries and hold back some of the 16 vessels scheduled to arrive for bunkers this week. Bunkering was in progress on Wednesday morning, with one vessel receiving fuel at anchorage, Rennies Ships Agency says.

Bunker operations are running smoothly in Mozambique’s Nacala and Maputo ports. Supply of VLSFO and LSMGO is said to be normal in Nacala. Prompt availability of VLSFO is currently normal in Maputo, while restocking of LSMGO inventories is expected in the coming days, a source says.

A total of eight vessels are due to arrive for bunkers across the two ports this week, up from five last week.

By Shilpa Sharma

Photo credit and souce: ENGINE
Published: 23 March, 2023

Financial Result

CBL International gross profit down 32.2% on year for 1H 2024

Decline primarily driven by reduction in premium sold to customers; leading to lower gross profit per tonne even though there was an increase in volume sold, says CBL.

Published

2 hours ago

September 13, 2024

Admin

CBL International Limited (CBL), the listing vehicle of Banle Group (Banle), a marine fuel logistic company in the Asia-Pacific region, on Thursday (12 September) announced its unaudited financial results for the six months ended 30 June.

CBL said its gross profit for the period was approximately USD 2.72 million, a decrease of 32.2% compared to USD 4.01 million for 1H 2023.

The firm said the decline was primarily driven by the reduction in premium sold to customers and led to lower gross profit per tonne, which was partially offset by an increase in volume sold.

CBL also reported its Consolidated revenue for 1H 2024 increased by 44.4% to approximately USD 277.23 million, compared to USD 191.96 million in the same period in 2023.

“This significant growth was driven by a 39.4% year-over-year increase in sales volume, attributed to the expansion of the Company's global supply network and higher marine fuel demand due to geopolitical factors,” it said.

The company announced the pricing of its initial public offering on Nasdaq Capital Market on 22 March last year.

“We are pleased with the robust growth in our revenue and sales volume during the first half of 2024, despite the challenging market conditions. Our strategic initiatives, including the expansion of our service network and our focus on sustainable fuel solutions, have positioned us well to navigate these challenges and capitalise on emerging opportunities,” said Teck Lim Chia, Chairman & CEO of Banle Group.

“While the current market environment has pressured our margins, we remain confident in our long-term strategy and our ability to deliver value to our shareholders.”

Other Financial Highlights:

Operating Expenses: Operating expenses rose by 64.0% to approximately USD 4.12 million, up from USD 2.51 million in 1H 2023. This increase was attributed to higher selling and distribution expenses related to our sales growth, strategic expansion in the Company's supply network to new geographic areas, and the development of our biofuel operations.
Net Income: The company reported a net loss of approximately USD 1.62 million, compared to a net income of USD 1.15 million in 1H 2023. The loss was driven by lower gross margin and higher operating costs.
Cash Flow: Net cash provided by operating activities was approximately USD 2.30 million, a significant improvement from a cash outflow of USD 7.24 million in 1H 2023, reflecting better management of working capital.
Cash position: As of June 30, 2024, Banle's consolidated cash balance increased by approximately USD 2.29 million, or 30.9%, to USD 9.69 million, compared to USD 7.40 million as of December 31, 2023. This increase was primarily driven by improved working capital management. The Company also reported a significant increase in accounts receivable and accounts payable balances, reflecting the growth in its sales activities.

Operational Highlights:

Global Network Expansion: As of June 30, 2024, Banle expanded its global service network from 36 ports at our IPO in March 2023 to over 60 ports across Asia, Europe and Africa. This strategic expansion has enabled the Company to secure new bunkering business opportunities, particularly in European markets where environmental regulations are increasingly stringent. The opening of the Company's new office in Ireland in late 2023 has bolstered our market coverage and enhanced local sourcing capabilities. Notably, the Company completed inaugural bunkering services through a local physical supplier in Mauritius in May 2024, further strengthening our market presence.
Biofuel Initiatives: Banle continued its commitment to sustainability by expanding its B24 biofuel operations, obtaining ISCC EU and ISCC Plus certifications in 2023. The Company successfully commenced biofuel bunkering services through local physical suppliers in Hong Kong, China, and Malaysia, positioning itself as a pioneer in sustainable fuel solutions. The B24 biofuel blend, which includes 24% UCOME (used cooking oil methyl ester), offers a 20% reduction in greenhouse gas emissions compared to conventional marine fuels, aligning with global decarbonisation efforts.
Response to Macroeconomic Environment: The global economy has shown signs of moderate growth in 2024, with emerging markets, particularly in Asia, driving this recovery. However, the shipping industry continues to face challenges such as fluctuating freight rates, port congestion, and disruptions in major trade routes due to the ongoing Red Sea Crisis. Banle has proactively adapted to these conditions, coordinating increased fuel supplies in Asian ports to meet heightened demand, ensuring that our customers' needs are met despite logistical challenges.

Looking ahead, Banle said it remains focused on expanding its market presence, particularly in the biofuel sector, and continuing to enhance its global supply network.

Photo credit: Essow on Pexels
Published: 13 September, 2024

Alternative Fuels

KPI OceanConnect expands Asia footprint with new Tokyo office

New office will help existing and new clients navigate increasing operational complexity in the marine energy sector, from new alternative bunker fuels to tightening environmental regulations.

Published

2 hours ago

September 13, 2024

Admin

KPI OceanConnect expands Asia footprint with new office in Japan

Marine energy solutions provider KPI OceanConnect on Thursday (12 September) announced the opening of its new office in Tokyo, Japan, to strengthen its regional presence and support to local customers.

The office is KPI OceanConnect’s fifth in Asia, reflecting an increasing commitment to strategic growth in the region.

Japan is a leading innovator in the maritime industry, operating the third largest merchant fleet and is an important market for KPI OceanConnect.

The new office, led by Ken Kobayashi, Head of Japan, will help existing and new clients navigate increasing operational complexity in the marine energy sector, from new alternative fuels to tightening environmental regulations.

The announcement follows KPI OceanConnect’s recent publication of robust financial results for the year 2023/2024 and demonstrates its continued commitment to investing in building strong partnerships across the marine fuels value chain worldwide.

The expansion of the local team in Japan will enable KPI OceanConnect to actively engage with Japanese buyers and suppliers on a daily basis to exchange knowledge and expertise to support the development of innovative energy transition strategies for its clients.

The launch of the new office was celebrated with an opening reception on 10 September. The event was attended by the group’s owner, Nina Østergaard Borris and the Executive Management team of KPI OceanConnect, including Anders Grønborg, CEO, Dorthe Bendtsen, COO, and Jesper Sørensen, Global Head of Alternative Fuels and Carbon Markets.

To celebrate this milestone, KPI OceanConnect hosted an opening reception at the XEX Tokyo restaurant, just steps away from its new office in the Burex building. The event also featured music by DJ Yumi.

Anders Grønborg, CEO of KPI OceanConnect, said: “KPI OceanConnect has worked closely with clients in Japan for a very long time. As a key market for our sector and our business, this new office allows us to be closer to our customers and other important local stakeholders.”

“It is a time of transformation in the maritime value chain, and we are ready to work with our partners to identify opportunities for further collaboration and innovative solutions. We believe that our values of decency, good governance, transparency and long-term sustainability resonate well in this market.”

Ken Kobayashi, Head of Japan, KPI OceanConnect, said: “KPI OceanConnect is here to support its clients in turning today’s challenges and future uncertainties into opportunities for growth and innovation. From new fuels to new regulations, our network of experts is focused on delivering tailored, value-adding services to clients to future-proof their decision making, no matter the complexity.

“With a partnership-driven approach, we’re enabling greater transparency and innovation and are helping rewrite the bunkering playbook to support clients through the energy transition.”

Photo credit: KPI OceanConnect
Published: 13 September, 2024

Alternative Fuels

European shipowners and bunker fuel producers launch Clean Maritime Fuels Platform

Members of the initiative include ECSA, FuelsEurope, eFuel Alliance, European Waste-based & Advanced Biofuels Association, HydrogenEurope and Methanol Institute.

Published

2 hours ago

September 13, 2024

Admin

European shipowners and bunker fuel producers launch Clean Maritime Fuels Platform

The European Community Shipowners’ Associations (ECSA) on Thursday (12 September) announced the launch of the Clean Maritime Fuels Platform.

The new Clean Maritime Fuels Platform is a bottom-up industry initiative aiming to enhance communication between the shipping sector and fuel producers and to identify common challenges and possible solutions, considering the implementation of the Fit for 55 package and the transition to a net-zero economy by 2050.

Members of the initiative include ECSA, FuelsEurope, eFuel Alliance, European Waste-based & Advanced Biofuels Association (EWABA), HydrogenEurope and Methanol Institute.

According to ESCA, access to clean maritime fuels is a top priority for the decarbonisation of the shipping sector.

The recently published Draghi report on the Future of European Competitiveness identifies shipping as one of the most difficult sectors to decarbonise, requiring around 40 billion in annual investments between 2031 and 2050.

The report highlighted that, while the EU is a world leader in sustainable renewable and low-carbon fuels for the decarbonisation of transport, it has limited installed capacity and planned production. The EU needs to start building a supply chain for clean fuels, or the costs of meeting its targets will be significant.

Representatives of ECSA, FuelsEurope, eFuel Alliance, EWABA, HydrogenEurope and Methanol Institute held their first meeting on 12 September and agreed on the objectives and the working principles of the new platform. Members also started to discuss the key topic of infrastructure gaps.

The platform will focus on policies and tools to support the production and uptake of clean maritime fuels in Europe including areas such as maritime in EU ETS and funding opportunities.

The platform will hold regular meetings with ECSA taking care of the secretariat’s tasks.

“Today, the shipping and energy industry join forces and launch a dialogue platform that can facilitate better flow of information about the common challenges we are facing. We need all hands on deck to make the energy transition happen. In order to meet our targets, we need clean fuels available in the market in sufficient quantities and at an affordable price. European shipowners are proud to launch with the fuel producers the Clean Maritime Fuels Platform”, said Sotiris Raptis, ECSA Secretary General.

“We are very excited to launch the Clean Maritime Fuels Platform today. Our 55+ members from across the EU are working tirelessly to produce waste-based and advanced biodiesel of the highest quality requirements and GHG savings to bring a new era of clean shipping to Europe. We believe that a closer collaboration between renewable fuel suppliers and ship owners will significantly reduce technical, operational, and financial barriers across the supply chain for the development and uptake of renewable maritime fuels”, said Angel Alvarez Alberdi, Secretary General of EWABA.

“The energy transition is a gradual journey, not an overnight change. It demands a robust regulatory framework and collaboration among all stakeholders involved to drive effective decarbonization. As we work alongside our 100 members through the complexities of this transition, the Clean Fuels Maritime Platform will play a crucial role in accelerating our shift to cleaner fuels and innovative technologies. By combining our collective expertise and efforts, we are not only tackling the pressing need for emission reductions but also laying the groundwork for a more resilient and sustainable maritime industry”, said Greg Dolan, CEO of Methanol Institute.

Photo credit: European Community Shipowners’ Associations
Published: 13 September, 2024