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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.

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RESIZED ENGINE Europe and Africa

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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HSFO

Baltic Exchange: Bunker Report (13 June 2024)

Bunker report panellists include Island Oil Limited, Cockett Marine Oil Pte, Monjasa A/S and KPI OceanConnect.

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Baltic bunker report 13 June

The following bunker report has been provided by freight market information provider Baltic Exchange for post on Singapore bunkering publication Manifold Times:

Note:

All values are in US$/metric ton, all-in (invoice price), delivered on board
Delivery in 7-10 days
ISO 8217:2010
IFO 380 3.5% Sulphur
IFO 380 0.5% Sulphur
DMA 0.1% Sulphur

Rotterdam – Waalhaven – Maasvlakte range
Houston – Houston Harbor
Singapore – Anchorage, under SBA Scheme
Fujairah – Offshore Anchorage Area

Submitted weekly at Close of Business UK time, on Tuesday & Thursdays

Panellists:
Island Oil Limited, Cockett Marine Oil Pte, Monjasa A/S, KPI OceanConnect

 

Photo credit and source: Baltic Exchange
Published: 14 June 2024

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HSFO

ENGINE: Americas Bunker Fuel Availability Outlook (13 June 2024)

Availability tight in NOLA; low bunker demand in GOLA; bad weather disrupts Freeport bunkering.

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RESIZED ENGINE Americas

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:

  • Availability tight in NOLA
  • Low bunker demand in GOLA
  • Bad weather disrupts Freeport bunkering

North America

Bunker demand has remained good in Houston and several other locations along the US Gulf Coast this week. Availability of all fuel grades has been normal for prompt supply in Houston. Several suppliers in Houston have ample VLSFO and LSMGO availability and are actively offering stems for prompt deliveries. VLSFO stems for non-prompt dates were being fixed at as low as $567/mt on Thursday.

Prompt VLSFO and LSMGO supply is available in Bolivar Roads and Beaumont. However, bunker deliveries in these locations remain subject to weather conditions and the availability of anchorage spaces, a source says.

Availability has tightened in the New Orleans Outer Anchorage’s (NOLA) this week. One supplier requires 7–10 days to deliver VLSFO and LSMGO stems in NOLA.

Bunkering was proceeding normally in the Galveston Offshore Lightering Area (GOLA) on Thursday amid good weather conditions. The weather is forecast to remain calm over the weekend and into next week. Overall, demand has been very low this week at the anchorage.

The ports of Los Angeles and Long Beach on the West Coast have experienced a notable surge in demand this week. One contributing factor could be the competitive bunker prices in the twin ports compared to prices seen in other West Coast ports like Seattle and Vancouver.

VLSFO and LSMGO availability has been better than normal in Los Angeles and Long Beach. One supplier can supply both grades with a lead time of just four days, which is much shorter than the typical 7-9 days observed in these ports.

Prompt VLSFO and LSMGO are available in the East Coast port of New York.

Baltimore’s main shipping channel has been restored to its full depth and width after the removal of debris from the Francis Scott Key Bridge collapse. Bunker demand has been steady there, and most suppliers are able to offer stems with a lead time of 5-7 days.

Caribbean and Latin America

Bunker fuel availability has been normal in the Panamanian ports of Balboa and Cristobal. At least four suppliers can offer all bunker grades in Balboa, with lead times of up to seven days.

Demand has surged for Balboa compared to Cristobal for prompt dates.

Bunker operations were suspended in the Bahamas’ Freeport on Thursday due to strong wind gusts of up to 27 knots. The weather is expected to remain rough until Saturday, which could cause prolonged delays and disruptions.

Operations were also suspended in Argentina's Zona Comun anchorage on Thursday due to adverse weather conditions. The area was experiencing strong wind gusts of up to 30 knots, making barge deliveries difficult there.

Availability of VLSFO and LSMGO remains tight in Zona Commune for prompt dates. One supplier can offer VLSFO stems at the anchorage only for deliveries after 20 June, a source says.

In Brazil, bunker demand has been low across most ports, including Santos and Rio de Janeiro. Several suppliers are able to offer stems with a lead time of 5-7 days.

By Debarati Bhattacharjee

 

Photo credit and source: ENGINE
Published: 14 June, 2024

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Bunker Fuel

JLC China Bunker Fuel Market Monthly Report (May 2024)

Country sold about 1.62 million mt of bonded bunker fuel in May, with the daily sales slipping by 3.42% month on month to 52,416 mt due to tepid bunkering demand, according to JLC’s data.

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JLC China Bunker Market Monthly Report (May 2024)

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

Bunker Fuel Demand

China sees another fall in bonded bunker fuel sales in May

China saw another fall in its bonded bunker fuel sales in May, due to tepid bunkering demand, despite larger LSFO production.

The country sold about 1.62 million mt of bonded bunker fuel in the month, with the daily sales slipping by 3.42% month on month to 52,416 mt, JLC’s data indicates.

Bonded bunker fuel sales by Chimbusco and SinoBunker dropped to 480,000 mt and 55,000 mt in May, while those by Sinopec (Zhoushan) and China Changjiang Bunker (Sinopec) climbed to 590,000 mt and 36,000 mt, respectively. In the meantime, suppliers with regional bunkering licenses sold 463,900 mt of bonded bunker fuel, sliding from 468,100 mt in April, the data shows.

Though refiners ramped up LSFO production, the barge capacity at domestic ports was relatively tight amid lingering supervision of bunker barges, which dragged down the country’s bonded bunker fuel sales.

China’s bonded bunker fuel exports increase in April, but sales decline

China’s bonded bunker fuel exports continued to increase in April, but the actual sales decreased as bunkering demand was relatively weak and domestic refiners cut LSFO production.

The country exported 1.73 million mt of bonded bunker fuel in April, jumping by 321,100 mt or 22.74% month on month, with the daily exports significantly up by 26.83% to 57,777 mt, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Heavy bunker fuel exports were about 1.64 million mt in the month, accounting for 94.41% of the total, while light bunker fuel exports were 96,900 mt, accounting for 5.59%.

However, the country’s bonded bunker fuel sales dropped in April, as domestic LSFO supply tightened when refineries’ unit maintenance peaked. Meanwhile, Chinese customs strengthened the supervision of bunker barges, dampening ports’ bunkering business to some extent. The country sold about 1.63 million mt of bonded bunker fuel in the month, with the daily sales down by 7.48% month on month to 54,270 mt, JLC’s data shows.

Bonded bunker fuel exports are not equal to bonded bunker fuel sales, as the exports refer to the volume of cargoes flowing into bonded tanks while the sales refer to the actual volume of bunkering.

On a year-on-year comparison, China’s bonded bunker fuel exports soared by 21.08% in April.

China exported a total of 6.17 million mt of bonded bunker fuel in January-April, slipping by 4.07% from the corresponding period in 2023. Specifically, heavy bunker fuel exports were roughly 5.80 million mt, accounting for 93.98%, while light bunker fuel exports were 371,400 mt, accounting for 6.02%.

JLC China Bunker Market Monthly Report (May 2024)

JLC China Bunker Market Monthly Report (May 2024)

Domestic-trade heavy bunker fuel demand contracts in May

Domestic-trade heavy bunker fuel demand contracted in May, as the shipping market remained lukewarm. Domestic-trade heavy bunker fuel demand was estimated at 390,000 mt in the month, falling by 30,000 mt or 7.14% from the previous month, JLC’s data shows.

In contrast, domestic-trade light bunker fuel demand came in at 140,000 mt in May, up by 10,000 mt or 7.69% month on month. Shipowners increased their purchases as power generation demand picked up amid warmer weather.

Bunker Fuel Supply

China’s bonded bunker fuel imports fall in April

China’s bonded bunker fuel imports fell in April, as most distributors showed lower buying interest in bonded high-sulfur fuel oil (HSFO) when their inventory was relatively high.

The country imported about 341,000 mt of bonded bunker fuel in the month, a cut of 11.04% month on month and 17.61% year on year, JLC estimated, with reference to data from the GACC.

As Chinese Customs strengthened the supervision of bunker barges, the barge capacity at ports in East China declined and most companies saw a drop in their bonded bunker fuel sales, leading to a build-up of HSFO. In this case, distributors reduced purchases of bonded HSFO in April, dragging down the country’s total bonded bunker fuel imports.

However, certain distributors imported LSFO to meet demand when domestic supply tightened amid a traditional maintenance season. Chinese refiners produced about 1.23 million mt of LSFO in the month, with the daily output at 41,033 mt, down by 8.81% month on month, JLC’s data shows.

Singapore topped all bonded bunker fuel suppliers to China with 204,100 mt in April, accounting for 59.84% of the total. Malaysia and South Korea ranked second and third by exporting 105,700 mt and 31,300 mt of bonded bunker fuel to China, which accounted for 31.99% and 9.17% respectively.

China tallied a total of 1.31 million mt of bonded bunker fuel imports in January-April, soaring by 24.83% from the corresponding months in 2023, slowing down from a 52.60% surge in January-March.

JLC China Bunker Market Monthly Report (May 2024)

Domestic-trade bunker fuel supply continues to tighten in May

Domestic-trade bunker fuel supply continued to tighten in May, as low-sulfur residual oil supply decreased further and blenders’ blending interest was depressed by tepid shipping demand.

Chinese blenders supplied about 410,000 mt of heavy bunker fuel in the month, descending by 20,000 mt or 4.65% from the previous month, JLC’s data shows.

At the same time, domestic-trade MGO supply settled at 150,000 mt, a loss of 10,000 mt or 6.25% from a month earlier, the data shows. Refineries’ enthusiasm for MGO production was hit by falling diesel prices.

Bunker Prices,Profits

JLC China Bunker Market Monthly Report (May 2024)JLC China Bunker Market Monthly Report (May 2024)
JLC China Bunker Market Monthly Report (May 2024)

Editor
Yvette Luo
+86-020-38834382
[email protected]  

Sales (Beijing)
Tony Tang
+86-10-84428863
[email protected]  

Sales (Singapore)
Ginny Teo
+65-31571254
[email protected]
[email protected]  

JLC Network Technology Co., Ltd is recognized as the leading information provider in China. We specialized 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.

All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise redistributed without prior authorization from JLC.

Related: JLC China Bunker Market Monthly Report (April 2024)
Related: JLC China Bunker Market Monthly Report (March 2024)
Related: JLC China Bunker Fuel Market Monthly Report (February 2024)
Related: JLC China Bunker Market Monthly Report (January 2024)

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: 12 June 2024

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