Bunker Fuel Availability

ENGINE: Europe & Africa Bunker Fuel Availability

HSFO supply improves in northwest Europe; HSFO very tight in Gibraltar; Algoa Bay bunkering comes to a standstill.

Published

1 year ago

September 28, 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 northwest Europe
HSFO very tight in Gibraltar
Algoa Bay bunkering comes to a standstill

Northwest Europe

HSFO availability is said to be normal in Rotterdam and the rest of the ARA, a source says. Availability of the high-sulphur grade has improved now, but securing stems on very prompt dates (0-2 days) can still be difficult, a trader says. Lead times of 5-7 days are recommended for grade to ensure full coverage from suppliers, a source says.

VLSFO has been in ample supply in the ARA hub, two sources say. Unlike HSFO, the low-sulphur grade is much easier to secure for prompt delivery dates.

Rotterdam’s Hi5 spread was pegged around $27/mt on Wednesday, which was only a third of where it was in June last year. It has been lingering below $50/mt for the past three months.

Some argue that production cuts from Saudi Arabia have reduced access to sour crude and supported HSFO prices in the ARA. This could contribute to keep the Hi5 spread from moving above $50/mt for the rest of the year, a trader says.

Lead times of 4-6 days are recommended for VLSFO, and 1-3 days for LSMGO in Rotterdam and in the wider ARA hub.

Availability of HSFO has shown signs of improvement in several northwest European ports, a source says. At least three suppliers in the German port of Hamburg have sufficient HSFO stocks available, the source adds. VLSFO and LSMGO supply is also good, with lead times of up to five days recommended in Hamburg.

VLSFO and LSMGO availability remains normal for delivery off Skaw. Recommended lead times for both grades are around 7-10 days.

Mediterranean

HSFO availability has been tight in Gibraltar since the start of the month. Two in three suppliers are almost out of stock, and expect replenishment cargoes to arrive by 6 October, a source says. One supplier has limited HSFO stocks available and can only deliver stems on a case-to-case basis. These are usually priced higher. The supplier expects to receive a replenishment cargo by 15 October.

Lead times of 7-12 days are recommended for HSFO in Gibraltar, up from 4-6 days last week. The port’s Hi5 spread momentarily slipped into rare negative territory on Tuesday, before flipping back to positive on Wednesday.

The narrowing of Gibraltar's Hi5 spread has diminished fuel cost savings against VLSFO for scrubber-fitted vessels. It could potentially dent HSFO sales in the port.

In nearby Las Palmas, the Hi5 spread has shrunk to just $8/mt. Its HSFO price was trading at near parity levels to Gibraltar on Wednesday, erasing its $36/mt premium over Gibraltar's HSFO in the past week.

Limited HSFO supply in the region has narrowed Hi5 spreads across several Mediterranean ports.

Prompt VLSFO and LSMGO availability is tight in Ceuta. One in two suppliers is fully committed for the remaining days left in this month, and the other supplier has its earliest delivery dates from 5 October. Meanwhile, availability of both grades is relatively better in Gibraltar and Algeciras. Lead times of 5-7 days are recommended there.

VLSFO and LSMGO availability is normal In the Portuguese ports of Lisbon and Sines, a source says. LSMGO availability is also good in the Spanish port of Tarragona, where one supplier can deliver the grade by trucks from 4 October.

Other bunker delivery locations in the Mediterranean such as off Malta, Piraeus and Istanbul have normal availability of VLSFO and LSMGO, sources say, while HSFO is tighter.

Africa

South African authorities have detained all bunker barges in Algoa Bay, two port agents have told ENGINE. This comes after the South African Revenue Service (SARS) detained five bunker barges over import duty disputes earlier this month. Since then, only one supplier has been able to operate its barges.

All operations have now been cancelled and all barges detained in the bay.

Offshore bunkering has completely stopped, one of the agents said. It seems that some backchannel talks are being held to resolve the crisis, but so far, no official confirmation has been made, the port agent added.

SARS has been conducting investigations into bunker compliance, and the bunker vessel detentions are part of an investigation, it said in a statement released last week. The South African authority has called the detentions “lawful” as the investigation is still ongoing.

By Nithin Chandran

Photo credit and source: ENGINE
Published: 28 September, 2023

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Bunker Fuel

JLC China Bunker Fuel Market Monthly Report (December 2024)

Country sold about 1.59 million mt of bonded bunker fuel in the month, with daily sales at 51,332 mt, a dip of 1.25% from a month earlier, JLC’s data shows.

Published

12 hours ago

January 13, 2025

Admin

JLC China Bunker Fuel Market Monthly Report (December 2024)

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for December 2024 with Manifold Times through an exclusive arrangement:

China’s daily bonded bunker fuel sales slip in December

China’s daily bonded bunker fuel sales slipped in December, as domestic LSFO supply tightened.

The country sold about 1.59 million mt of bonded bunker fuel in the month, with daily sales at 51,332 mt, a dip of 1.25% from a month earlier, JLC’s data shows. (Note: The volume of China’s November bonded bunker fuel sales has been revised to 1.56 million mt, up from 1.52 million mt stated in the report for November, with Chimubusco’s sales up from 320,000 mt to 360,000 mt.)

Bonded bunker fuel sales by Chimbusco, Sinopec (Zhoushan), SinoBunker and China Changjiang Bunker (Sinopec) settled at 450,000 mt, 500,000 mt, 40,000 mt and 15,000 mt in the month, while those by suppliers with regional bunkering licenses settled at 586,300 mt.

Overall bunkering demand was relatively stable in the month, but domestic refiners continued to cut their LSFO production amid tight quotas, resulting in a decline in daily bonded bunker fuel sales.

China’s bonded bunker fuel exports surge in November

China’s bonded bunker fuel exports surged in November, as bunker suppliers were making efforts to boost sales, also because of more re-export trade activities.

The country exported about 1.82 million mt of bonded bunker fuel in the month, with the daily exports at 60,643 mt, up by 46.57% month on month and 32.97% year on year, JLC calculated, with reference to data from the General Administration of Customs of PRC (GACC).

In breakdown, heavy bunker fuel exports climbed to about 1.71 million mt, accounting for 93.77% of the total exports, while light bunker fuel exports amounted to 113,300 mt, occupying 6.23%.

Despite a further drop in domestic LSFO output, bonded distributors exported more bonded bunker fuel in the month, in a bid to achieve their annual sales targets and lower their inventories. Meanwhile, bonded distributors saw more arrivals of imported LSFO cargoes, and they sold more bonded bunker fuel in the form of re-export trade, which also drove up the exports.

China tallied a total of 18.19 million mt of bonded bunker fuel exports in January-November, with the daily exports at 54,309 mt, inching up by 0.39% from the same months in 2023, JLC estimates, based on the GACC data. Specifically, heavy bunker fuel exports settled at 16.99 million mt in the eleven months, accounting for 93.37% of the total, while light bunker fuel exports settled at 1.21 million mt, making up 6.63%.

JLC China Bunker Fuel Market Monthly Report (December 2024)

Domestic-trade heavy bunker fuel demand strengthens in December

Domestic-trade heavy bunker fuel demand strengthened in December.

Domestic-trade heavy bunker fuel demand amounted to 400,000 mt in December, rising by 20,000 mt or 5.26% month on month, JLC’s data shows.

Shipowners just made purchases to meet rigid demand in the first half of the month when domestic bunker fuel prices rose. However, they engaged in more transactions in the second half as prices retreated and their restocking demand increased amid the approach of the Spring Festival.

On the flip side, domestic light bunker fuel demand dropped to 140,000 mt in the month, down by 10,000 mt or 6.67% from the prior month.

Market sentiment was bearish on diesel demand, attributable to lower operating rates at infrastructure construction and other outdoor projects amid falling temperatures.

Bunker Fuel Supply

China’s bonded bunker fuel imports hit 44-month high

China’s bonded bunker fuel imports soared significantly in November, hitting a 44-month high, as domestic LSFO supply tightened amid insufficient export quotas.

China imported 915,200 mt of bonded bunker fuel in the month, the highest level since March 2021, JLC calculated, with reference to data from the GACC. The imports jumped by 35.50% from the previous month and 70.46% from a year earlier.

Domestic refiners continued to cut their LSFO output as they had run short of export quotas. As a result, bonded dealers had to import more bonded bunker fuel to fill the demand gap. These refiners produced about 466,000 mt of LSFO in November, with the daily output at 15,533 mt, plunging by 38.87% month on month and 41.58% year on year, JLC’s data shows.

While LSFO imports grew, imports of bonded HSFO and MGO were still basically stable in November.

Malaysia was still the largest bonded bunker fuel supplier to China in November, shipping 472,200 mt of bonded bunker fuel to China, which accounted for 51.60% of China’s total imports. Meanwhile, Singapore and South Korea remained in the second and third place with 262,100 mt and 112,000 mt, accounting for 28.64% and 12.23%, respectively. Peru came in fourth with 86,900 mt, occupying 7.53%.

China imported a total of 4.95 million mt of bonded bunker fuel in January-November, skyrocketing by 29.33% from the corresponding months in 2023, versus a rise of 22.61% in January-October.

JLC China Bunker Fuel Market Monthly Report (December 2024)

Blenders raise heavy bunker fuel supply in December

Chinese blenders raised their heavy bunker fuel supply in December, as downstream restocking increased amid the approach of the Chinese New Year holiday, though supply of some blendstock such as shale oil and light coal tar was relatively tight.

These blenders supplied about 430,000 mt of domestic-trade heavy bunker fuel in the month, a boost of 30,000 mt or 7.5% month on month, JLC’s data shows.

On the contrary, domestic-trade light bunker fuel supply tightened amid weaker diesel demand and refineries’ lower operating rates. Domestic-trade MGO supply shrank to 160,000 mt in December, down by 20,000 mt or 11.11% from a month earlier, the data indicates.

JLC China Bunker Fuel Market Monthly Report (December 2024)

BunkerPrices,Profits

JLC China Bunker Fuel Market Monthly Report (December 2024)

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Tony Tang
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JLC Network Technology Co., Ltd is recognised as the leading information provider in China. We specialise in providing the transparent, high-value, authoritative market intelligence and professional analysis in commodity market. Our expertise covers oil, gas, coal, chemical, plastic, rubber, fertilizer and metal industry, etc.

JLC China Bunker Fuel Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market, demand, supply, margin, freight index, forecast and so on. The report provides full-scale & concise insight into China bunker oil market.

Note: China-based commodity market information provider JLC Technology has been providing Singapore bunkering publication Manifold Times China bunker volume data since 2020. Data from earlier periods are available here.

Photo credit: JLC Network Technology
Published: 13 January, 2024

Bunker Fuel Availability

ENGINE: Americas Bunker Fuel Availability Outlook (9 Jan 2025)

Fog season impacting US Gulf Coast bunkering; prompt availability improves in West Coast ports; rough weather causing delays in New York.

Published

4 days ago

January 10, 2025

Admin

The following article regarding bunker fuel availability in the Americas region has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

Fog season impacting US Gulf Coast bunkering
Prompt availability improves in West Coast ports
Rough weather causing delays in New York

North America

Bunker fuel availability in Houston remains tight across all grades, according to a source. High winds over the last few days have created some backlogs by delaying bunker deliveries in the port.

Deliveries can remain suspended due to high wind gusts until 10 January, a source said. Suppliers generally require lead times of 7-9 days for VLSFO and LSMGO deliveries in Houston, while HSFO could take more than nine days.

Dense fog and reduced visibility around the Galveston Offshore Lightering Area (GOLA) have disrupted bunker deliveries. “Prolonged delays are expected over the next several days due to high winds [around GOLA],” a source said.

The New Orleans Outer Anchorage (NOLA) also faces fog-related disruptions, similar to GOLA. Fog conditions in the anchorage area depend heavily on wind directions. Southerly winds from the Gulf typically result in fog, while colder, northerly winds keep visibility clear.

On the West Coast, prompt bunker availability has improved in Los Angeles and Long Beach in January, with suppliers recommending lead times of seven days for VLSFO and LSMGO.

On the East Coast, availability for VLSFO and LSMGO is good in New York, but bunkering operations may be suspended this week due to rough weather, causing potential delays, a source said. Standby tugs may be required at certain times, the source added.

High wind gusts could suspend bunker deliveries in Canada’s Montreal.

Caribbean and Latin America

Demand remains strong in the Panamanian ports of Balboa and Cristobal, amid tight availability across all grades. Suppliers require lead times of more than seven days to secure stems.

The Colombian ports of Santa Marta, Barranquilla and Cartagena have seen more demand in recent days, tightening availability. December and January are the months with the highest demand, a source remarked.

Bunker operations at Argentina’s Zona Común anchorage may face some disruptions due to rough weather and strong wind gusts. Prompt VLSFO availability is tight at the anchorage, with lead times of at least seven days advised, a source said.

By Aparupa Mazumder

Photo credit and source: ENGINE
Published: 10 January, 2024

Bunker Fuel Availability

ENGINE: Europe & Africa Bunker Fuel Availability Outlook (8 Jan 2025)

High LSMGO demand in the ARA; bunker supply good in Lisbon; LSMGO still dry in Durban.

Published

5 days ago

January 9, 2025

Admin

High LSMGO demand in the ARA
Bunker supply good in Lisbon
LSMGO still dry in Durban

Northwest Europe

HSFO supply is still tight for very prompt delivery dates in Rotterdam and other ARA ports, a trader said. Lead times of 5-7 days are advised for the grade.

VLSFO and LSMGO supply is good in Rotterdam, with lead times of 3-5 days advised for full coverage from suppliers. LSMGO demand has been on the increase in the ARA recently, according to a source.

The ARA’s independently held fuel oil stocks increased 9% in December compared to November, according to Insights Global data.

The region imported 161,000 b/d of fuel oil in December, significantly down from 301,000 b/d imported in November, according to data from cargo tracker Vortexa.

The UK (27% of the total) was the ARA's biggest fuel oil import source in December, followed by Poland (17%), Denmark (13%), Germany (11%) and Colombia (9%).

The ARA hub’s independent gasoil inventories - which include diesel and heating oil - held steady in December. The region imported 238,000 b/d of gasoil and diesel in December, down from 359,000 b/d imported in November, according to Vortexa data.

Workers in the French ports of Saint-Nazaire and Montoir will go on strike on and off for four hours at a time this month, a trade union has announced according to GAC Hot Port News. The trade union will also hold a two-day strike, starting on 3 February.

The strikes could impact bunkering in these ports, a trader told ENGINE, adding that bunker demand in France is currently weak.

Germany’s Hamburg port has good bunker supply across VLSFO, HSFO and LSMGO. A trader advised lead times of 3-5 days for all three grades.

Mediterranean

Bunker availability is good in Gibraltar, with recommended lead times of 3-5 days for all three grades, a source said. Gibraltar witnessed adverse weather intermittently last week, which continued into Monday. This led to severe congestion in the port until Tuesday, when the congestion began easing. Bunker deliveries have been proceeding smoothly since.

Rough weather could impact bunkering in Gibraltar on Wednesday and Thursday, with strong wind gusts of up to 23 knots forecast in the port area.

The Canary Islands' port of Las Palmas is still struggling with tightness in supply for all three grades, a trader said. Lead times of 5-7 days are recommended for optimal coverage.

Meanwhile, Portugal’s Lisbon and Sines have good bunker supply with ample availability of all grades, according to a trader.

Suppliers in the Greek port of Piraeus are witnessing very weak demand despite good availability across fuel grades, a trader told ENGINE. Some suppliers are able to offer prompt delivery dates.

Turkey’s Istanbul has normal supply of VLSFO, LSMGO and HSFO. Lead times of 3-4 days are advised by traders across. Demand has been moderate recently with very few stems being booked, a trader said.

Bunker demand is stable off Malta, where availability is good for all grades, a trader said. Lead times of 4-5 days are recommended. Bunkering disruptions may occur off Malta on Wednesday, Friday and Saturday when rough weather is forecast in the area.

Africa

VLSFO availability is tight for prompt supply in South Africa’s Durban and Richards Bay, a trader told ENGINE. Lead times of 7-10 days are advised for the grade in both ports.

Securing LSMGO is a challenge in Durban as it continues to be dry in the port, according to a trader.

Mauritius’ Port Louis has good availability across VLSFO, HSFO and LSMGO, with prompt availability offered by suppliers. Rough weather is forecast in Port Louis from Friday to Monday, which may impact bunkering.

Bunkering is normal in Mozambique’s Nacala and Maputo ports and has not been impacted by the civil unrest in the urban areas, a source told ENGINE. Nacala has good availability of all three grades, while Maputo has normal supply of VLSFO and LSMGO.

Bunker demand in Mozambique is recovering now after a decline in the last two weeks during Christmas and the New Year, a source said. Overall, bunker demand was subdued in December compared to the previous year, the source added.

By Manjula Nair

Photo credit and source: ENGINE
Published: 9 January, 2025