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:
9 August 2023
- Rotterdam’s Hi5 spread shrinks to just $37/mt
- HSFO prices in Gibraltar at regional discounts
- VLSFO and LSMGO tight in Maputo
Northwest Europe
Prompt HSFO supply remains very tight in Rotterdam and in the wider ARA hub. A lead time of seven days is recommended to ensure full coverage from suppliers there, a source says. But some have urged bunker buyers to consider longer lead times when looking to book HSFO stems.
Securing prompt HSFO stems of large quantities is even more difficult now, a trader says. Some suppliers are committed to supply HSFO to meet existing contract obligations, which means less volume is available for spot demand there, another source argues.
The supply tightness of the grade is likely to continue throughout this month, the trader adds. Tighter availability of HSFO also contributed to shrink Rotterdam’s Hi5 spread to just $37/mt on Wednesday. The port’s Hi5 spread has been lingering close to $50/mt levels since June, which is much narrower than Gibraltar’s $80/mt.
Prompt availability of VLSFO and LSMGO is generally better in the ARA hub, but some claim that LSMGO supply has tightened a bit, partly as big suppliers are holding back on offers.
However, another source maintains that the LSMGO supply is normal there. Some suppliers tend to hold back on offers not due to lack of supply, but because they seek to pick and choose the best bids in the market, the source explains. A lead time of 4-5 days is recommended for VLSFO, and 3-5 days for LSMGO.
Overall demand in the ARA hub has been slow so far this week.
VLSFO and LSMGO availability remains normal for delivery off Skaw, while HSFO is relatively tighter, a source says. Recommended lead times for all grades remain unchanged at 7-10 days.
Mediterranean
Bunker operations at Gibraltar’s Western anchorage resumed last Saturday, after having been suspended for nearly four days because of an oil spill incident in the bay. The oil spill occurred on 1 August, when the LPG tanker vessel Gas Venus received bunkers from the bunker vessel Hercules 500 and saw its fuel tanks overflow, maritime analytics provider Marine Traffic said.
The bunker suspension led to an increase in congestion in Gibraltar last week, but these backlogs were quickly cleared after bunkering was allowed to resume. Some vessels were also diverted to bunker in nearby alternative locations such as Ceuta and Algeciras, a source says. Minimum congestion was reported in Gibraltar, Algeciras and Ceuta on Wednesday, port agent MH Bland said.
HSFO, VLSFO and LSMGO availability is now said to be normal across Gibraltar Strait ports. A lead time of 4-6 days is recommended for VLSFO and LSMGO, a source says. Some can even supply the grades on prompter delivery dates.
Ample HSFO supply in Gibraltar has kept a lid on its benchmark price, which was around $20/mt lower than Rotterdam’s on Wednesday. Recommended lead times are also slightly shorter at 5-6 days in Gibraltar.
VLSFO and LSMGO availability is good in the Portuguese ports of Lisbon and Sines. Gibraltar's bunker disruption last week did not result in any substantial rise in bunker-only calls in Portuguese ports, a source says.
In Italy’s Genoa, VLSFO and LSMGO availability is normal, but prompt deliveries are still subject to enquiry, a source says.
Other bunker delivery areas in the Mediterranean such as Piraeus and off Malta have good availability of VLSFO and LSMGO. All grades are also readily available for prompt delivery dates in Turkey’s Istanbul.
Africa
VLSFO and LSMGO availability is 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 still recommended, a source says.
HSFO is out of stock in Mozambique’s Nacala. A supplier is working to replenish its stocks, but has not given a timeline for when it expects to have more HSFO to offer. Meanwhile, VLSFO and LSMGO availability is good in Nacala.
In Maputo, VLSFO and LSMGO availability has tightened for prompt delivery dates this week.
By Nithin Chandran
Photo credit and source: ENGINE
Published: 10 August, 2023