Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

HSFO supply improves in Hamburg; availability normal in Gibraltar; LSMGO tight in South African ports.

Published

2 years ago

September 7, 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:

HSFO supply improves in Hamburg
Availability normal in Gibraltar
LSMGO tight in South African ports

Northwest Europe

HSFO availability is said to be normal in Rotterdam and in the wider ARA hub, two sources say. Lead times of 5-6 days are recommended for the grade, unchanged from last week. HSFO has become more widely available with some suppliers, compared to last month when availability was limited, a trader says.

However, some still think HSFO supply will remain tight for the rest of the year.

VLSFO and LSMGO availability is normal in the ARA hub. Lead times of 4-6 days are recommended for VLSFO, and up to four days for LSMGO. Some traders say that prompt availability of LSMGO is tight in the ARA hub. A few suppliers that are offering the grade for very prompt delivery dates (0-2 days) are quoting with steep price premiums, a trader says.

Overall, demand for LSMGO has been slow in recent weeks, the trader adds.

Rotterdam’s LSMGO price swung to a discount of $35/mt to front-month ICE Gasoil futures on Wednesday, after trading at a rare premium of about $7/mt over the ICE Gasoil contract last week.

Meanwhile, ICE Gasoil is in steep backwardation, with $14/mt between the front- and second-month contracts. Its second-to-third month spread more than twice as wide at $31/mt on Wednesday. A backwardated forward structure is usually a sign of fewer incentives to store products.

In the German port of Hamburg, VLSFO and LSMGO availability is normal. Lead times of about five days are recommended for the grades. HSFO supply has improved a bit in the port, a source says.

Mediterranean

All grades remain in normal availability across Gibraltar Strait ports. Lead times of 3-5 days are recommended for VLSFO and LSMGO in Gibraltar, and 4-6 days for HSFO. Several suppliers in Gibraltar and Ceuta are able to supply VLSFO and LSMGO on prompt delivery dates, a source says.

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 good in the Portuguese ports of Lisbon and Sines.

Securing VLSFO and LSMGO for very prompt dates off Malta can be slightly difficult. One supplier is unable to supply the grade for very prompt dates due to a tight schedule, while another can supply from 10 September. But rough weather conditions are forecast between Wednesday and Friday, which could disrupt bunker operations off Malta.

Other bunker delivery areas in the Mediterranean such as Piraeus and Istanbul have good availability of VLSFO and LSMGO, a source says.

Africa

LSMGO availability is “super tight” across the South African ports of Durban, Cape Town and Richards Bay, a source says. The grade is in tight supply in the region, partly because one major supplier is running low on stocks there. VLSFO availability is relatively better and lead times of up to seven days are still recommended for the grade.

Bunkering resumed in Algoa Bay on Wednesday after being suspended for a day due to rough weather conditions, according to Rennies Ships Agency. However, strong wind gusts and heavy swells are forecast to hit the bay over the weekend, which could trigger another suspension.

VLSFO and LSMGO availability is good in Mozambique’s Nacala and Maputo ports, a source says. HSFO is almost out of stock in Nacala. One supplier expects to receive a replenishment cargo after 15 September, which could ease some supply pressure there.

By Nithin Chandran

Photo credit and source: ENGINE
Published: 7 September, 2023

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FuelEU Pooling service enables undercompliant vessels to meet their compliance targets by pooling with vessels running on GoodFuels sustainable bio bunker fuels.

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GoodFuels biofuel supplier FincoEnergies on Wednesday (16 April) announced the launch of its FuelEU Pooling service, created to enable shipowners to meet FuelEU Maritime compliance in a cost-effective way.

FuelEU Maritime, effective from 1 January 2025, mandates the reduction of greenhouse gas intensity of energy used on board ships trading in the EU. For many operators, particularly those with limited access to low-carbon fuels, compliance can be both complex and costly.

Designed for shipowners, operators, charterers, and technical managers, FincoEnergies’ FuelEU Pooling service enables undercompliant vessels to meet their compliance targets by pooling with vessels running on GoodFuels sustainable biofuels, when these vessels are overcompliant and have ‘Surplus’ emission reduction available for allocation.

FincoEnergies also partnered with Lloyd’s Register (LR), who supported the development of the service. Their technical expertise has enabled shaping a solution that aligns with both regulatory requirements and FincoEnergies' established position as a biofuel supplier in the fuel supply chain.

“FuelEU Maritime represents one of the most important regulatory shifts for the shipping industry in decades,” said Alberto Perez, Global Head, Maritime Commercial Markets at LR. “By integrating technical expertise with strategic guidance, we ensure shipowners, operators, and suppliers not only comply with evolving emissions standards, but also proactively transform their operations, embracing new technologies and alternative fuels to ensure a sustainable and profitable future.”

“With a decade of experience in biofuel bunkers and carbon certificate trading in the voluntary market, we are excited to expand our creative and solution-oriented product portfolio with FuelEU Pooling,” said Johannes Schurmann, Commercial Director International Marine at FincoEnergies.

“Thanks to our physical presence in the supply chain, shipping companies looking for FuelEU surplus can confidently rely on us as a trusted partner in their decarbonisation journey.”

Through its role as Pool Organiser, FincoEnergies streamlines the entire pooling process – from performing biofuel bunkers and prefinancing Surplus, to Surplus allocation and pool verification. With cost-effective pricing, FuelEU Pooling provides shipping companies with a competitive alternative for changing their fuel mix themselves.

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Published: 21 April, 2025

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PO/Marine launches supply of MED ECA-compliant ULSFO bunker fuel

In preparation of the upcoming Mediterranean Emission Control Area regulation, PO/Marine successfully delivered its first supply of ULSFO with 0.10% sulphur content on 15 April.

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Aydın Yıldız, Head of Marine Sales at Petrol Ofisi Group

Petrol Ofisi’s bunkering arm PO/Marine on Thursday (17 April) said it has completed the bunkering operation of ULSFO—a marine fuel with 0.10% sulphur content—in alignment with the upcoming Mediterranean Emission Control Area (MED ECA) regulation.

Under the new regulation, all vessels operating within the Mediterranean must use low-sulphur marine fuels.

Effective 1 May 2025, the Mediterranean will officially be designated as an Emission Control Area (MED ECA), prohibiting the use of marine fuels with sulphur content exceeding 0.10%.

In preparation for this regulatory transition, PO/Marine successfully delivered its first supply of ULSFO (Ultra Low Sulphur Fuel Oil) with 0.10% sulphur content on 15 April.

PO/Marine launches supply of MED ECA-compliant ULSFO bunker fuel

Aydın Yıldız, Senior Maritime Manager at Petrol Ofisi Group, said: “Our leadership in the maritime fuel sector is defined not only by our market share but also by the innovative steps we take to shape the industry.

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“With our ULSFO bunkering, we have once again demonstrated that we are setting the standard in Türkiye’s marine fuel landscape. The designation of the Mediterranean as an Emission Control Area is not only a regional development but a historic turning point for global maritime operations.”

Photo credit: PO/Marine
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Oilmar completes first ULSFO bunker fuel delivery in Türkiye

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UAE-based marine fuel and petroleum products trader Oilmar DMCC on Friday (18 April) announced the successful completion of its first ULSFO 0.1% Sulphur delivery in Istanbul, marking one of the very first trades of its kind in the country.

“With this milestone, Oilmar proudly steps forward as one of Türkiye’s pioneering trading companies in ULSFO 0.1% Sulphur fuel,” it said in a social media post.

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Photo credit: Dima Rogachevskiy on Unsplash
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