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ENGINE: Europe & Africa Bunker Fuel Availability Outlook

HSFO supply tight across major bunker ports; VLSFO and LSMGO steady in most Mediterranean ports; VLSFO and HSFO availability tight in Nacala.

Published

2 months ago

July 20, 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:

19 July 2023

HSFO supply tight across major bunker ports
VLSFO and LSMGO steady in most Mediterranean ports
VLSFO and HSFO availability tight in Nacala

Northwest Europe

Prompt supply of HSFO has been tight in Rotterdam and in the wider ARA hub. Securing large stem sizes of the grade can be even more challenging in the bunkering hub. Most suppliers in Rotterdam are hesitant to offer stem sizes of more than 3,000 mt of HSFO due to limited product availability.

Tight availability of HSFO in Rotterdam has contributed to narrow the port’s Hi5 spread to just $60/mt now, almost half of what it was in April. Recommended lead times for HSFO and VLSFO deliveries remain unchanged from last week at 5-7 days, a source says. Bunker buyers looking to lift HSFO stems in the ARA should ideally consider a longer lead time, another source says.

Meanwhile, LSMGO is readily available in Rotterdam and in the wider ARA hub, with lead times of 2-3 days recommended for the grade.

HSFO supply has been tight in the region despite an increase in its fuel oil stocks. The ARA's independent fuel oil stocks have averaged 6% higher so far this month than across June. The inventories have grown to their bulkiest monthly level since June 2021, according to Insights Global data.

On the other hand, the region’s independent gasoil inventories - which include diesel and heating oil – have declined by 11% so far this month and to their lowest monthly level since last December.

VLSFO and LSMGO supply remains normal for delivery off Skaw, a source says. HSFO supply is relatively tighter there. Recommended lead times for all grades remain unchanged at 7-10 days. Barge availability is said to be normal off Skaw, the source adds.

LSMGO availability is normal in the Norwegian ports of Bergen and Mongstad, a trader says.

Bunker fuel availability is normal in the German ports of Hamburg and Bremerhaven, with recommended lead times of five days.

Mediterranean

HSFO availability remains tight in Gibraltar Strait ports. Lead times of up to seven days are recommended to ensure full coverage from suppliers in the region. VLSFO and LSMGO availability is relatively better across Gibraltar, Algeciras and Ceuta, with lead times of 3-5 days recommended.

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

VLSFO and LSMGO availability is also normal in Las Palmas, with recommended lead times of 2-4 days, a source says. Meanwhile, HSFO availability has been tight in Las Palmas amid limited product availability. One supplier expects to receive replenishment cargo on 21 July, which could ease some supply pressure there, a source says.

VLSFO and LSMGO availability is said to be normal in the Portuguese ports of Lisbon and Sines. Bunker fuel availability also remains steady for prompt supply off Malta and in the Greek port of Piraeus.

Africa

VLSFO and LSMGO availability remains normal in the South African ports of Durban and Cape Town, and at the Algoa Bay anchorage by Port Elizabeth, where lead times of up to seven days are recommended, a source says

Bunkering was fully suspended in Algoa Bay on Wednesday due to rough weather conditions, according to Rennies Ships Agency. Deliveries could resume from Thursday afternoon, when improved weather conditions are forecast.

VLSFO supply is tight in Mozambique's Nacala port, with limited product availability until 28 July, a source says. HSFO availability is even tighter there, with delivery dates stretching to mid-August. Meanwhile, LSMGO is readily available in the port.

In Maputo, VLSFO and LSMGO availability is normal for prompt dates.

By Nithin Chandran

Photo credit and source: ENGINE
Published: 20 July, 2023

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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.

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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.”

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“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.”

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Photo credit: TotalEnergies Marine Fuels
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