Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

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

Published

3 weeks ago

September 7, 2023

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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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

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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
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“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
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