VLSFO
Freight Investor Services witnesses rapid rise in VLSFO bunker fuel sales in February
Miguel E. Andujar, Oil Derivatives Broker at Freight Investor Services, shared an article on the outlook of VLSFO bunker fuel for 2024, focusing on Rotterdam, Singapore and Houston.
Published
8 months agoon
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AdminMiguel E. Andujar, Oil Derivatives Broker at Freight Investor Services, on Tuesday (20 February) shared an article on the outlook of VLSFO bunker fuel for 2024, focusing on Rotterdam, Singapore and Houston:
As we enter Q1 2024, the maritime fuel industry is witnessing a surge in Very Low Sulphur Fuel Oil (VLSFO) sales, signalling positive trends across major ports. In Rotterdam, VLSFO prices have rebounded by $10.50/mt in February, representing a significant 82% market share of bunker sales from January. This comes as a welcome recovery following a disappointing Q4 2023, marked by an 11% decline in sales.
Rotterdam's resurgence sets a positive tone for the global bunker market, hinting at a turnaround from previous setbacks.
Singapore, a key player in the global maritime industry, replicates this momentum with a $6.00/mt increase in VLSFO prices in February. Bunker fuel sales in the strategic port surged by 12.1% year on year, reaching 4,906 million metric tons in January. This accounted for a substantial 59.2% of VLSFO sales, according to the Maritime and Port Authority of Singapore.
Houston, a vital port with significant import activity from Asia and North Europe, sees VLSFO up by $11.50/mt in February and $136/mt since the start of 2024, accounting for 62% of total bunker sales for this year.
With Crude Oil trading within a range, with a strong resistance at the $82-83 zone level, markets indicate a growing preference for LSFO and influencing bunker prices globally.
Additionally, the Red Sea conflict contributes to the shifting landscape, with longer voyages around the Cape of Good Hope raising end-user bunker consumption. As the year unfolds, these trends will continue to shape the trajectory of the global bunker market.
Photo credit: Venti Views on Unsplash
Published: 21 February, 2024
Bunker Fuel
Brazil: Raízen launches new bunkering operation in Itaqui
Operation will support both coastal and oceangoing vessels at Off Port Limits, allowing the firm’s customers to avoid full port call fees and unnecessary deviations, says Paula Georgopoulos Tinoco.
Published
1 day agoon
October 4, 2024By
AdminBrazilian energy firm Raízen has launched its new bunkering operation in Itaqui at the Outer Anchorage Area, according to Paula Georgopoulos Tinoco, Bunker Sales Coordinator at Raízen on Wednesday (3 October).
The firm is providing local supplies for the grades VLSFO380 (max. 0.5%S) and LSMGO DMA (max. 0.1%S).
“The new bunkering operation will support both coastal and oceangoing vessels with different sizes and class at the Off Port Limits, allowing our customers to avoid full port call fees and unnecessary deviations at different bunkering ports,” she said in a social media post.
In September last year, Bunker Holding subsidiary Bunker One announced that it partnered with Acelen, the largest bunker producer in the Brazilian state of Bahia, to offer the only outer anchorage bunkering operation in Brazil at the time.
Starting September 2023, vessels such as large cargo ships and tankers can be supplied in the anchorage area of the Port of Itaqui in São Marcos Bay (MA).
Related: Brazil: Bunker One and Acelen partner to launch bunkering operation outside Port of Itaqui
Photo credit: Raízen
Published: 4 October, 2024
Bunker Fuel Availability
ENGINE: Americas Bunker Fuel Availability Outlook (3 Oct 2024)
Dockworkers’ strike at East and Gulf Coast ports; low demand in Houston; Raizen starts bunker operations off Itaqui.
Published
1 day agoon
October 4, 2024By
AdminThe 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:
- Dockworkers' strike at East and Gulf Coast ports
- Low demand in Houston
- Raizen starts bunker operations off Itaqui
North America
Dockworkers across the US East and Gulf Coasts ports launched their first major strike in nearly 50 years on Tuesday, raising concerns about potential supply chain disruptions.
While the strike action directly affects container and cargo operations, sources warned that bunkering services may also face indirect delays if barge movements are hindered.
“We haven’t seen an impact on port [fuel] reserves yet, but we’re anticipating disruption,” Stone Oil’s chief operating officer Anthony Odak told ENGINE. The company supplies bunker fuels at ports along the US Gulf Coast.
Prolonged congestion at the ports could also affect the availability of bunker fuel. Although oil and gas shipments are handled through separate operational facilities, disruptions in containerized cargo movements could tighten fuel oil supply chains.
Bunker demand has been very low in Houston for prompt dates. However, the availability of all fuel grades has remained good so far this week. Most suppliers can offer VLSFO and LSMGO stems with a lead time of 5-7 days in Houston.
Bunkering was proceeding normally in the Galveston Offshore Lightering Area (GOLA) on Thursday amid pleasant weather conditions. The weather is forecast to remain calm through the weekend and most of next week. Despite this, bunker demand in GOLA has been very low this week.
The Port of New Orleans, a key Gulf Coast hub for dry bulk commodities like grains, is also experiencing severe delays in loading and unloading ships. These delays are raising shipping costs and risking supply chain disruptions. Prolonged strikes could worsen congestion and further impact industries relying on these trade routes, shipping technology company Signal Ocean stated.
All grades are tight for prompt delivery dates in the West Coast ports of Long Beach and Los Angeles. Most suppliers require more than seven days of lead time to deliver VLSFO and LSMGO stems in both ports.
Bunker fuel availability has not been affected by the ongoing strike action in the East Coast port of New York. Most suppliers are still able to offer VLSFO and LSMGO stems within five days of lead time.
Caribbean and Latin America
Bunker demand has been good in Panamanian ports amid more daily transits through the Panama Canal. Availability has also remained good for prompt dates in both Balboa and Cristobal.
Denmark's The Bunker Firm has launched new bunker operations in Cartagena, Columbia, supplying VLSFO and LSMGO.
VLSFO and LSMGO grades are readily available at Argentina’s Zona Comun anchorage. Demand has picked up this week for both the fuel grades.
Bunker fuel demand has been good in most Brazilian ports this week. VLSFO availability is good in most of the ports, according to most suppliers.
Brazilian energy company Raízen has also launched new bunker operations at Itaqui Outer Anchorage, supplying VLSFO and LSMGO.
By Debarati Bhattacharjee
Photo credit and source: ENGINE
Published: 4 October, 2024
Bunker Fuel Availability
ENGINE: Europe & Africa Bunker Fuel Availability Outlook (2 Oct 2024)
Prompt LSMGO remains tight in the ARA hub; HSFO availability good in Gibraltar; prompt bunker supply tight in Port Louis.
Published
2 days agoon
October 3, 2024By
AdminThe 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:
- Prompt LSMGO remains tight in the ARA hub
- HSFO availability good in Gibraltar
- Prompt bunker supply tight in Port Louis
Northwest Europe
Prompt availability of LSMGO remains very tight in Rotterdam and in the wider ARA hub, a trader told ENGINE. Some suppliers in Rotterdam are experiencing barge loading delays. This has stretched lead times for the grade from 3–5 days last week, to 7–10 days now.
Most suppliers are unable to offer LSMGO for prompt deliveries in Rotterdam, as their barges have been held up for days waiting to load product at oil terminals, the trader said.
Prompt supply of VLSFO and HSFO is good in the ARA hub, with lead times of 3–4 days recommended for both grades.
The ARA’s independently held fuel oil stocks have averaged 6% lower so far this month than across August, according to Insights Global data.
The region has imported 269,000 b/d of fuel oil in September so far, up from 223,000 b/d imported in August, according to data from cargo tracker Vortexa. The ARA has imported low-sulphur fuel oil (LSFO) and HSFO in a 55/45 ratio so far this month.
The US has emerged as the region’s biggest fuel oil import source so far this month, accounting for 15% of the total imports. The UK has come in second place, accounting for 13% of the ARA’s total imports, followed by the Bahamas (11%), Brazil (10%) and Poland (8%).
The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have increased by 13% so far this month. The region has imported 293,000 b/d of gasoil in September so far, down from 355,000 b/d of gasoil imported in August, according to Vortexa data.
Bunker fuel availability is normal in Germany’s Hamburg port, a trader said. Lead times have remained steady in the past few months, with suppliers offering all three grades within 3–5 days.
Mediterranean
Prompt supply of all bunker fuel grades is good in Gibraltar. Lead times of 3–5 days are advised for optimal coverage from suppliers. Gibraltar is forecast to experience rough weather conditions in periods between today and Friday, which could impact bunkering. Wind gusts of up to 21 knots are forecast to hit the port.
Securing prompt HSFO deliveries can be difficult in the Canary Islands’ port of Las Palmas, a trader said. Lead times remain unchanged since last week, with 5–7 days advised for the grade's delivery in the port.
Availability of VLSFO and LSMGO is good in Las Palmas and suppliers are able to offer prompt deliveries, with lead times of 3–5 days for both grades.
Bunker demand is moderate in other Mediterranean ports like Piraeus, Malta Offshore and Istanbul, a trader told ENGINE.
Availability of VLSFO and LSMGO is good in the Greek port of Piraeus, the trader said. Suppliers are able to offer prompt delivery dates for the two grades in the port. Prompt HSFO supply is subject to enquiry, the trader added. Calm weather is forecast in Piraeus for the rest of the week, making it conducive to bunker there, a source said.
Prompt availability of all grades is good off Malta, a trader said. Lead times of 3–4 days are generally recommended. Adverse weather is forecast intermittently off Malta from Wednesday till Friday, which could complicate deliveries, according to a source.
In Turkey’s Istanbul port, all bunker fuel grades are readily available. Lead times of 3–4 days are advised for optimal coverage from suppliers, a trader said.
Africa
Prompt supply of VLSFO and LSMGO remains tight in South Africa’s Durban port. Recommended lead times for LSMGO stretch up to two weeks, while lead times of 7–10 days are advised for VLSFO deliveries, according to a trader.
Durban is forecast to experience adverse weather conditions between Friday and Sunday, which could impact bunkering. Strong wind gusts in the range of 19-31 knots are forecast to hit Durban during this period.
VLSFO supply is tight in Richards Bay, where lead times of 7–10 days are advised for the grade, a trader said.
Securing prompt bunker deliveries can be challenging in Mauritius’ Port Louis. Lead times of over ten days are recommended for all three grades there, a trader said. Port Louis could face bunkering disruptions between Saturday and Monday, when rough weather is forecast in the port, a source said.
In Angola’s Luanda port, a state-run bunker supplier halted VLSFO supply in August. It is yet to provide an update on when the supply will resume in the port. LSMGO availability is currently good in Luanda, with supply available by barge, a source said.
By Manjula Nair
Photo credit and source: ENGINE
Published: 3 October, 2024
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