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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

8 months 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

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

21 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