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ENGINE: Europe & Africa Bunker Fuel Availability Outlook (6 March 2024)

VLSFO supply improves in the ARA hub; low demand in Malta, Piraeus and Istanbul; VLSFO and LSMGO tight in Maputo.

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RESIZED ENGINE Europe and Africa

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:

  • VLSFO supply improves in the ARA hub
  • Low demand in Malta, Piraeus and Istanbul
  • VLSFO and LSMGO tight in Maputo

Northwest Europe

Availability of all grades in Rotterdam and in the wider ARA hub is good, a trader said.

Lead times of 4-6 days are advised for HSFO, while LSMGO is offered for prompter delivery with lead times of 2-4 days.

VLSFO supply in the ARA has improved over the past week. Lead times for the grade have come down from last week’s 5-7 days to 4-5 days now.

The ARA’s independently held fuel oil stocks held steady in February, according to Insights Global data.

The region imported 256,000 b/d of fuel oil in February, up from 222,000 b/d in January, according to cargo tracker Vortexa data. The ARA hub imported low-sulphur fuel oil (LSFO) and HSFO in a 45/55 ratio in February, almost similar to the 48/52 ratio in January.

The UK emerged as the ARA hub’s biggest fuel oil import source in February, accounting for 21% of the region’s total imports. Greece ranked second, accounting for 12% of the total imports. This was followed by Poland (10%), Germany and Sweden (9% each).

Despite a drop in imports, the ARA hub’s independent gasoil inventories — which include diesel and heating oil — increased by 7% in February. The ARA imported 301,000 b/d in February, down from 399,000 b/d of gasoil in January.

In the German port of Hamburg, availability is good across all three grades, a trader told ENGINE. Lead times of 3-5 days are advised for all three grades. But rough weather conditions expected from Thursday onward may disrupt bunker operations in the port until the weekend.

Off Skaw, HSFO is available only for non-prompt dates. The grade continues to show tightness, with lead times of 7-10 days advised by a trader. The availability of VLSFO and LSMGO grades is comparatively better off Skaw, with short lead times of 5-7 days recommended. Rough weather is likely to hamper bunkering off Skaw on Wednesday, a source says. 

Mediterranean

Some suppliers in Gibraltar are waiting for HSFO replenishment cargoes, a trader says. Lead times of 6-8 days are recommended for the high-sulphur grade, unchanged from last week.

In Gibraltar, the availability of VLSFO and LSMGO is currently normal, a trader says. Recommended lead times for VLSFO have come down to 3-4 days from 5-6 days witnessed last week. Lead times of 3-4 days are recommended for LSMGO, a trader said.

In the nearby Ceuta port, the bunker barge SPABunker Cuarenta has resumed operations after being in dry dock since February 9. The barge was undergoing a five-year inspection. With the barge now back in service, potential bunkering delays in the port are expected to be mitigated.

Bunkering in the Gibraltar Strait could still be challenging because of the rough weather conditions. Wind gusts of up to 28 knots and swells nearing two meters are forecast to hit the Gibraltar Strait on Thursday. The weather is forecast to remain rough throughout this week, with wind speeds forecast to intensify further and touch 41 knots on Saturday.

Rough weather could impact bunkering in the ports of Gibraltar, Algeciras and Ceuta until Sunday, a source says.

Other Mediterranean ports, such as Piraeus, Malta Offshore and Istanbul continue to witness low demand, a trader told ENGINE.

In the Greek port of Piraeus, availability is normal for all grades, with prompt delivery dates available, the trader said. Calm weather is forecast for the rest of this week and will facilitate bunkering to proceed smoothly.

Availability is normal off Malta, and prompt delivery dates are available for all grades, a trader said. Off Malta, bunkering resumed on Wednesday after bad weather impacted bunkering for a day. However, wind gusts of up to 21 knots are forecast off Malta on Friday and are expected to intensify to 43 knots on Sunday. Rough weather could possibly trigger congestion and delays.

Turkey’s Istanbul port has normal availability across all grades, with suppliers able to offer prompt delivery dates as well, a trader said. Calm weather is forecast for the rest of the week, which could allow bunkering to run smoothly.

Africa

VLSFO availability has improved in the South African ports of Durban and Richards Bay. Lead times for VLSFO have come down from over 10 days last week to 7-10 days in both ports, a trader said. LSMGO, however, continues to run dry and is extremely tight in both ports. Lead times of well over ten days are advised for LSMGO.

In Richards Bay, vessel berthing delays averaging 2-4 days in the port are likely to impact bunker operations, a source said.

In South Africa’s Cape Town, the availability of all bunker grades is good, according to shipping agent Trade Ocean. Vessels calling for bunkers are encountering delays of 24-48 hours due to port congestion caused by additional demand coming from Red Sea diversions, Trade Ocean says.

At Algoa Bay in South Africa, offshore bunkering continues to remain suspended at the anchorage, according to a source. Bunker deliveries in Algoa Bay were suspended in September last year after the South African Revenue Service (SARS) detained bunker barges over import duty disputes. Since then, only in-port deliveries have been offered by one supplier in Port Elizabeth.

Mozambique’s Nacala and Maputo ports have witnessed average demand in the past week, a source told ENGINE. In Nacala, availability has been good for all three grades. In contrast, Maputo is grappling with tightening availability for prompt dates for both VLSFO and LSMGO grades. The port is also struggling with tight bunker barge schedules, which may cause supplier delays in the port.

By Manjula Nair

 

Photo credit and source: ENGINE
Published: 7 March 2024

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Biofuel

Chimbusco and SPG complete first biofuel bunkering operation in Northern China

Chimbusco’s “DA YUAN YOU 8” tanker refuelled the “HMM VANCOUVER” with 1,300 metric tonnes of B24 biofuel at Qingdao Port.

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Chimbusco and SPG achieves first biofuel bunkering operation in Northern China

China Marine Bunker (PetroChina) Co Ltd (Chimbusco) and Shandong Port Group (SPG) recently said they successfully completed the first B24 biofuel bunkering operation in Northern China on 14 June.

Chimbusco’s “DA YUAN YOU 8 ” tanker refuelled the “HMM VANCOUVER” with 1,300 metric tonnes (mt) of B24 biofuel at Qingdao Port.

Chimbusco said the successful bunkering operation not only marks a milestone in the bonded biofuel bunkering business for international voyage vessels in northern China but also represents a critical milestone in the green and low-carbon transformation of the shipping industry around the Bohai Sea and throughout northern China. 

B24 biofuel is a blend of 24% waste cooking oil and 76% high-sulphur fuel oil. Authoritatively certified, the company said this fuel can significantly reduce carbon emissions from vessel operations by up to 20%, providing shipowners with an efficient and convenient low-carbon solution to comply with increasingly stringent International Maritime Organization (IMO) emission reduction regulations. 

Since the beginning of this year, Chimbusco said it has achieved top records of bunkering volumes in the green fuel sector. From the first successful operation at Ningbo-Zhoushan Port in eastern China to subsequent bunkering operations in Shenzhen, Xiamen, and other major ports across the country, the company has further consolidated its regular supply capabilities. 

During this in-depth cooperation with SPG’s Qingdao Port, Chimbusco’s “Green Energy Label” made its debut at the operation site. 

“This further confirms that Chimbusco is deploying green fuel bunkering services to help Chinese ports accelerate the construction of a maritime green energy supply network,” the company said. 

 

Photo credit: Shandong Port Group
Published: 20 June, 2025

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Ammonia

Korea to develop global standards for discharge of toxic effluent from ammonia-fuelled ships

KR and major Korean shipyards such as HD Hyundai Heavy Industries, HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Samho and Samsung Heavy Industries will be part of the group.

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Korea to develop global standards for discharge of toxic effluent from ammonia-fuelled ships

Classification society Korean Register (KR) said it has launched a joint working group to establish international standards for the safe discharge of toxic ammonia effluent generated from ammonia-fuelled ships.

Major Korean shipyards such as HD Hyundai Heavy Industries, HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Samho, Samsung Heavy Industries, Hanwha Ocean, and the Korea Testing & Research Institute (KTR) will be part of the group. 

KR said ammonia is attracting attention as an eco-friendly alternative fuel that does not emit carbon dioxide, a greenhouse gas, but due to its strong toxicity and concerns about marine pollution, it is essential to establish separate safety standards. 

In particular, ammonia effluent generated from wet treatment systems currently has no clear treatment standards, which causes considerable technical and operational uncertainty in ship design and operation.

Accordingly, the group aims to establish international standards related to the storage, treatment, and discharge of ammonia wastewater generated from ships and to officially propose this to the International Maritime Organization (IMO) through the Korean government.

The launch of this consultative body is a follow-up measure to a proposal by KR and the Korean government to the IMO in 2024 for the need to establish safety standards for ammonia effluent, which was officially approved at the 83rd IMO Marine Environment Protection Committee (MEPC) in April 2025. The group plans to propose a draft standard to the IMO in 2026 and lead international discussions.

Kim Tae-seong, Head of the KTR headquarters, said: “We will provide reliable scientific data to establish ammonia wastewater management guidelines and treatment standards. We will actively cooperate to secure the international competitiveness of the domestic shipbuilding and shipping industries.”
Kim Kyung-bok, Vice President of KR, said: “This consultative body is a symbolic case of our shipbuilding and shipping industries joining forces to lead the establishment of international safety standards based on our country’s advanced technologies.”

“KR will continue to support the development of alternative fuel safety standards and international standardisation efforts together with our government.”

 

Photo credit: Korean Register
Published: 20 June, 2025

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Legal

Florida bunker supplier indicted over alleged USD 5 mil SEA Card fuel purchase fraud

Owner of Independent Marine Oil Services, allegedly submitted fake invoices to US Navy ships and other vessels through the SEA Card Program, which allows US vessels to purchase fuel from suppliers at ports.

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RESIZED Pepi Stojanovski from Unsplash

The US Department of Justice recently said a federal grand jury in Miami returned an indictment recently charging a Florida business owner with multiple counts of wire fraud, money laundering, and forgery for his alleged role in orchestrating a scheme to defraud the US Department of Defense and other federal agencies. 

He allegedly did so by submitting altered and fake invoices to US Navy ships and other vessels through the SEA Card Program, which allows US vessels to purchase critical fuel from suppliers at ports around the world.

According to court documents filed in the Southern District of Florida, between August 2022 and January 2024, Jasen Butler, 37, of Jupiter, Florida, the owner of Independent Marine Oil Services LLC, submitted dozens of falsified documents to multiple U.S. warships — including the USS Patriot — demanding and receiving over USD 5 million dollars in payments for phony expenses that Butler had not incurred. 

These ships were attempting to purchase fuel in international ports such as Saudi Arabia, Singapore, and Croatia, among others. Butler also concealed his identity from government officials by using a false name and feigning employment by a fictitious fuel division of a different company. As alleged in the indictment, Butler used the millions in fraud proceeds to personally enrich himself and purchase multiple properties, including in Florida and Colorado. 

“This indictment sends a clear, public message: the Antitrust Division and its Procurement Collusion Strike Force under President Trump will not rest until all who defraud the brave men and women of the U.S. military and the American taxpayers receive swift justice,” said Assistant Attorney General Abigail A. Slater of the Justice Department’s Antitrust Division.

“Our office is steadfast in its commitment to prosecute individuals that seek to unjustly profit at the expense of the U.S. military,” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida. “Such fraud undermines military readiness and jeopardizes the dedicated service members who selflessly defend our country.”

“Mr. Butler’s alleged involvement in unlawfully submitting fraudulent invoices related to U.S. naval ships receiving fuel during port visits is an affront to the warfighter and taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS remains committed to thoroughly investigating those who commit fraud impacting the Department of Navy.”

“Those who exploit the Department of Defense for personal gain — by inflating costs, falsifying bids, or manipulating the contracting process — will be relentlessly pursued and held accountable,” said Special Agent in Charge Jason Sargenski of the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS), Southeast Field Office. 

“DCIS and our law enforcement partners remain unwavering in our mission to protect taxpayer dollars and preserve the integrity of DoD contracts that directly support our nation’s warfighters.”

If convicted, Butler faces maximum penalties of 20 years in prison for each count of wire fraud, up to 10 years for each count of forgery, and up to 10 years for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

The case was investigated by the Coast Guard Investigative Service, Defense Criminal Investigative Service, and Naval Criminal Investigative Service.

 

Photo credit: Pepi Stojanovski from Unsplash
Published: 20 June, 2025

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