Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

HSFO and VLSFO supply improves in the ARA; bunkering limited by bad weather in Las Palmas; bunker supply normal across South African ports.

Published

2 years ago

May 17, 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:

17 May, 2023

HSFO and VLSFO supply improves in the ARA
Bunkering limited by bad weather in Las Palmas
Bunker supply normal across South African ports

Northwest Europe

Supply of VLSFO and HSFO is said to have improved from last week in Rotterdam and in the wider ARA hub, but securing prompt deliveries can still be difficult as fewer suppliers will be able to offer, a source says.

Suppliers can deliver LSMGO stems for prompt dates in the ARA, the source adds. Recommended lead times for delivery of the grade in Rotterdam are up to three days.

Independently held gasoil stocks in the ARA averaged 4% higher in the first two weeks of May than across April.

India emerged as the ARA’s top gasoil import source this month. Gasoil imports from the country have accounted for 28% of the region’s total so far this month, followed by Saudi Arabia’s 18%, according to cargo tracker Vortexa.

Other gasoil import sources for the ARA were the UAE (16%), the US (8%) and Italy (6%).

Availability of VLSFO and LSMGO is said to be normal for delivery off Skaw, a source says. However, delivery prospects for HSFO remain subject to enquiries, a source says.

Bunker fuel supply across all grades is said to be normal in the German port of Hamburg. Lead times of around 5-6 days are recommended for VLSFO, HSFO and LSMGO there, a source says.

VLSFO and HSFO deliveries remain subject to enquiries in Bremerhaven.

Mediterranean

Bunker fuel availability of all grades is said to be normal in Gibraltar, a source says. Two suppliers can deliver prompt stems of VLSFO, HSFO and LSMGO.

Minimal congestion was reported in Gibraltar and Algeciras on Wednesday, according to port agent MH Bland. One supplier in Gibraltar and two in Algeciras were behind schedule on Wednesday.

Bunker supply is said to be normal in Ceuta, where prompt delivery of VLSFO is possible. Bunker operations were progressing normally in Ceuta on Wednesday. Seven vessels were due to arrive for bunkers throughout the day, according to shipping agent Jose Salama & Co.

Meanwhile, bunker operations at Las Palmas’ outer anchorage have been suspended since last week due to bad weather. The weather is forecast to remain unfavourable until Sunday, which could cause more delays and disruptions. However, bunker deliveries via ex-pipe at berth or by barge at the port's inner anchorage will remain available, MH Bland says.

Strong winds are also forecast to hit the nearby port of Tenerife this week, which could complicate deliveries there.

Bunker fuel supply across all grades is said to be normal in Malta. Some suppliers can offer deliveries for prompt dates off Malta, a source says. However, offshore Malta is forecast to experience rough weather conditions this week, which could cause delays.

Africa

Bunkering was suspended in Algoa Bay on Wednesday morning amid adverse weather conditions, according to Rennies Ships Agency. Two vessels were waiting to receive bunkers at anchorage, while one more vessel was held up waiting in the adjacent Port Elizabeth, Rennies says. The weather is expected to improve on Thursday evening, which could allow suppliers to deliver stems.

Bunker fuels supply is said to be normal in Algoa Bay, Durban and other South African ports, sources say. But fixing prompt stems for VLSFO and LSMGO can be difficult in Durban and Algoa Bay, where lead times of up to seven days are recommended, a source says.

Prompt supply of VLSFO and LSMGO is normal in Mozambique’s Nacala port, while fixing prompt stems for VLSFO can be difficult in Maputo, a source says.

By Shilpa Sharma

Photo credit and source: ENGINE
Published: 18 May, 2023

Legal

Shell MGO bunker heist: Bunker clerk gets jail time for helping Sentek acquire misappropriated fuel

Wong Wai Meng was sentenced to seven years, four months and two weeks’ jail on 10 January for helping the company acquire more than 28,000 mt of the misappropriated fuel worth USD 13.58 million.

Published

12 hours ago

January 13, 2025

Admin

A bunker clerk, who was previously employed by Sentek Marine & Trading (Sentek), was sentenced to seven years, four months and two weeks’ jail for helping the company acquire more than 28,000 metric tonnes (mt) of the misappropriated fuel worth USD 13.58 million (SGD 18.26 million), The Straits Times reported on Friday (10 January).

Wong Wai Meng, was working for Singapore-based firm Sentek at the time of the offences.

Wong, who received more than USD 286,000 from the company for his assistance, pleaded guilty in November 2024 to 12 counts of intentionally helping the company acquire the misappropriated fuel.

He committed the offences over 46 occasions between August 2014 and December 2017.

Wong is among the three bunker clerks previously employed by Sentek, who were charged for offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and the Prevention of Corruption Act (PCA).

Another bunker clerk among the three charged, Wong Kuin Wah, 61, was sentenced to seven years and six months’ jail on 18 November for his role in misappropriating more than 27,000 tonnes of gas oil worth around USD 12.8 million (SGD 17.2 million).

The third individual who was charged, Boo Pu Wen, reportedly passed away in July 2023 and had his charges abated following his death, meaning Boo’s court proceedings over his 19 charges at the time came to an end.

Former Shell employees, who were key members of a group who dishonestly misappropriated fuel from Shell Pulau Bukom, were sentenced to jail in court earlier.

Earlier coverage of developments by Manifold Times regarding the Shell MGO bunker heist can be found below:

Photo credit: Katrin Bolovtsova
Published: 13 January, 2025

Winding up

Singapore: Liquidator issue notice of intended dividend for Parakou Shipping

Creditors will need to produce proofs of debt to liquidator of Parakou Shipping by 24 January, according to Government Gazette notice.

Published

12 hours ago

January 13, 2025

Admin

A notice to declare intended dividend of Parakou Shipping Pte Ltd to its creditors has been posted on the Government Gazette on Friday (10 January).

The following are the details of the notice of intended dividend for the first dividend:

Name of Company : Parakou Shipping Pte Ltd (In Creditors’ Voluntary Liquidation)

Address of Registered Office : c/o KordaMentha, 16 Collyer Quay, #30-01, Singapore 049318

Last Day of Receiving Proofs : 24 January 2025 (if not already lodged)

Name of Liquidator : Cameron Duncan

Address : c/o KordaMentha, 16 Collyer Quay, #30-01, Singapore 049318

Photo credit: steve pb from Pixabay
Published: 13 January, 2025

Alternative Fuels

DNV: LNG dominates alternative-fuel vessel orderbook for 2024

According to DNV, LNG was the industry’s alternative fuel of choice by year-end; 264 LNG vessel orders were placed in 2024, over double that of 2023 which was 130 orders.

Published

12 hours ago

January 13, 2025

Admin

The maritime industry’s exceptional newbuilding year 2024 drove a significant rise in orders for alternative-fuelled vessels, according to the latest data from DNV’s Alternative Fuels Insights (AFI) platform.

A total of 515 such ships were ordered, representing a 38% year-on-year increase compared to 2023, underscoring the industry's growing commitment to decarbonization.

The growth in alternative-fuelled vessel orders has been heavily driven by the container and car carrier newbuild boom over the last three years. In 2024, 69% of all container ship orders were for ships capable of being powered by alternative fuels, driven by cargo owners responding to consumer demands for more sustainable practices and liner companies preparing to replace older tonnage. The preferred fuel choice for this segment was LNG (67%). In total the container and car carrier segments made up 62% of all alternative fuel orders in 2024.

Knut Ørbeck-Nilssen, CEO Maritime at DNV, said: “As we work towards decarbonizing the industry, we are encouraged by the growth in alternative fuel vessels over the past few years. While recent figures are promising, we must keep pushing forward.”

“The technological transition is underway, but supply of alternative fuel is still low. As an industry we need to work with fuel suppliers and other stakeholders to ensure that shipping has access to its share of alternative fuels in the future. It is also important that the safety of seafarers is ensured as we make this transition. This will require investment in upskilling and training.”

LNG was not the only fuel on shipowners’ minds as 2024 saw them betting on multiple alternative fuels. 166 methanol orders were added (32% of the AFI orderbook), reflecting shipping’s growing interest in a diverse fuel pool as it strives to reduce greenhouse gas emissions. Most of these methanol orders (85) were in the container segment.

While methanol drove newbuilding orders for alternative-fuelled vessels at the beginning of the year, LNG was the industry’s alternative fuel of choice by year-end. The number of LNG vessel orders placed in 2024 was 264, over double that of 2023 (130).

Ammonia saw promising momentum in the earliest months of the year and continued to grow throughout 2024. A total of 27 orders were placed for ammonia-fueled vessels. The first non-gas carrier ammonia-fuelled vessels orders were placed in 2024 (10), mainly in the bulk carrier segment (5). While still in its early stages, this provides further evidence of ammonia's emergence in the alternative fuel market.

Deliveries and bunkering

The number of LNG-fuelled ships in operation doubled between 2021 and 2024, with a record number of deliveries (169) in 2024. By the end of 2024, 641 LNG-powered ships were in operation. According to the AFI orderbook, this number is expected to double by the end of the decade.

While the bunkering infrastructure for some alternative fuels remains underdeveloped, LNG bunkering is maturing. The number of LNG bunker vessels in operation grew from 52 to 64 over the last year, with continued growth expected in 2025. The significant gap between LNG bunkering supply and demand is expected to widen over the next five years based on the AFI orderbook.

Addressing this challenge by developing the appropriate infrastructure for alternative fuels – both for vessels and bunkering - can create demand signals to stimulate long-term fuel production. With the EU regulatory package, Fit for 55, setting requirements on a large network of ports to have LNG bunkering infrastructure, it is expected that the availability of LNG in ports will increase.

Jason Stefanatos, Global Decarbonization Director at DNV, said: “Market conditions, infrastructure development, fuel production updates, and cargo owners' needs are all shaping the demand for different fuels, both in the short and long term.”

“The shifting trends in LNG and methanol orders this year might be due to the slow development of green methanol production. In the long run, green methanol has potential to be part of the energy mix along with ammonia.”

“In parallel, LNG offers a vital bridging fuel option benefiting from existing infrastructure and short-term emissions reductions while being capable of acting as a long-term solution as well, assuming RNG (Renewable Natural Gas) will be available and provided at a competitive price.”

Photo credit: DNV
Published: 13 January, 2024