Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

HSFO supply tight in ARA and Gibraltar Strait; low sulphur supply normal in Ceuta, Las Palmas; bad weather disrupts bunkering in Algoa Bay.

Published

3 months ago

June 21, 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:

21 June 2023

HSFO supply tight in ARA and Gibraltar Strait
Low sulphur supply normal in Ceuta, Las Palmas
Bad weather disrupts bunkering in Algoa Bay

Northwest Europe

Securing prompt delivery of HSFO grade can be difficult in Rotterdam and in the wider ARA hub. Tight availability of the product has pushed Rotterdam’s HSFO price higher in recent weeks. The grade's price has shot up by around $60/mt since 1 June, and flipped to a rare premium over Gibraltar.

Lead times of minimum 5-7 days are now recommended for HSFO bunker deliveries in the ARA, a source says. Suppliers are not offering stems for prompt dates there as several are running low on stocks, the source adds.

Multiple factors have contributed to the recent HSFO tightness in the ARA, according to various sources. A lack of access to banned Russian fuel oil imports, and crude oil to feed refineries, has rendered the ARA less resilient to supply shocks.

Since the EU banned crude imports from Russia, EU refineries have been shifting to sweet and sour grades from the US and other alternative sources. The recent Kurdish crude export suspension has prevented around 450,000 b/d of sour crude from reaching refineries in the EU and other destinations.

Shell's 404,000 b/d Pernis refinery - Europe's biggest - was offline for a three-month maintenance that was scheduled to end by late May. But a leak forced Shell to shut down two crude distillation units (CDUs) last week, Argus Media reported. Shell has been working to restart one of the CDUs that is "operating as normal" in recent days.

A recent draw of the ARA’s fuel oil stocks has added to the supply pressure in the bunkering hub. The ARA’s independently held fuel oil stocks averaged 11% lower in the first three weeks of this month, and dropped to their lowest monthly average since March, according to Insights Global data.

VLSFO requires around 5-6 days for full coverage from suppliers in the ARA.

Availability of LSMGO is better than for HSFO and VLSFO, with lead times of 3-4 days advised.

Supply of VLSFO and LSMGO is normal for delivery off Skaw, while HSFO is said to be relatively tighter. Lead times of up to seven days are advised for VLSFO and LSMGO. HSFO requires up to 10 days for delivery there, a source says.

Bunker fuel availability is normal in the German ports of Hamburg and Bremerhaven, with recommended lead times of five days. Meanwhile, bunker demand is said to be weak in both ports, a source says.

Mediterranean

VLSFO and LSMGO availability remains normal in Gibraltar and Algeciras, requiring lead times of around 3-4 days. However, securing very prompt delivery of HSFO can be difficult there. Lead times of 5-7 days are generally recommended to ensure full coverage from all suppliers in the region.

Minimum congestion was reported in Gibraltar, Algeciras, Ceuta and Malta on Wednesday, according to port agent MH Bland. Strong winds gusts of up to 26 knots are forecast to hit Gibraltar Bay in periods between Friday and Saturday, which could cause some delays.

Bunker operations are running normally in Las Palmas. Bunker fuel supply is normal there and in Ceuta. Lead times of up to five days are recommended for VLSFO and LSMGO deliveries in Ceuta.

Bunker demand has been weak in Malta so far this week, while availability is normal for all the main fuel grades, a source says.

In the Greek port of Piraeus, supply of HSFO and LSMGO is said to be normal for prompt dates, while VLSFO is currently tight. VLSFO supply is likely to improve by the end of this week, when replenishment stocks are expected to arrive, a source says.

Africa

Bunkering has been suspended in Algoa Bay since Monday due to bad weather conditions. Two vessels were waiting to receive bunkers at anchorage on Wednesday morning, according to Rennies Ships Agency. 20 vessels are scheduled to arrive for bunkers in Algoa Bay and Port Elizabeth in the remaining days of the week, it says. Heavy swells of up to 3.5 metres are forecast to continue until Friday morning, which could cause further delays and disruptions.

Meanwhile, bunker fuel supply is said to be normal in Durban and other South African ports. Lead times of up to seven days are advised for VLSFO and LSMGO deliveries in Durban, a source says.

Bunkering is progressing normally in Mozambique’s Nacala and Maputo ports amid conducive weather conditions, a source says. Bunker supply is said to be normal in both locations. A total of seven vessels are scheduled to arrive for bunkers across the ports this week, the source adds.

By Shilpa Sharma

Photo credit and source: ENGINE
Published: 22 June, 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

2 days 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

2 days 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

2 days 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