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Global Risk Management on Red Sea crisis: Demand for bunker fuels will increase due to longer voyages

The customised hedging solutions provider presented a chart deck during a weekly internal meeting it hosted for its sister company bunker supplier Bunker Holding to discuss the Red Sea situation.




Global Risk Management logo

The demand for bunker fuels will increase due to longer voyages and possible higher speed of sailing following the Red Sea crisis, says Arne Lohmann Rasmussen from Global Risk Management on Thursday (21 December).

The customised hedging solutions provider is part of the Danish USTC Group with its sister companies including bunker supplier Bunker Holding and tanker shipping firm Uni-Tankers. Global Risk Management also has an office in Singapore, besides its headquarters in Middelfart and Copenhagen office. 

“Our sourcing operation already reports rising demand in African ports, whereas the operations in ARA and Asia seem less impacted,” he said in a social media post while presenting a chart deck he used for a weekly internal meeting with Bunker Holding Group. 

“This is no surprise as the vessels are heading for Africa, passing Cape Town, and have not yet reached Europe after the long voyage south of Africa.”

According to the chart deck, shipowners will be forced to sail around the South of Africa without access to the Suez canal, adding at least 10 days to journey times, equating to around 250-420 mt extra bunker demand for LR2s (115k dwt). This was according to analysts at S&P Global Commodity Insights.

“S&P Global analysts estimate that engine power limitation, a favoured cost-cutter among vessel operators, reduces fuel consumption by 30%-40%, meaning higher speeds could produce dramatic demand shifts,” it said.

It has been reported that recent attacks on vessels has forced big shipping firms including Maersk, Mediterranean Shipping Company and CMA CGM to reroute around the Cape of Good Hope to avoid the Suez Canal, which is the shortest shipping route between Europe and Asia.

Photo credit: Global Risk Management
Published: 21 December, 2023

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Bunker Fuel Availability

ENGINE: Europe & Africa Bunker Fuel Availability Outlook (24 July 2024)

VLSFO and LSMGO supply is tight in the ARA; HSFO is tight in Piraeus; bunkering remains suspended off Algoa Bay.





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:

  • VLSFO and LSMGO supply is tight in the ARA
  • HSFO is tight in Piraeus
  • Bunkering remains suspended off Algoa Bay

Northwest Europe

Prompt LSMGO and VLSFO availability have tightened in the ARA hub because of bunker barge loading delays at some oil terminals. Some barges are experiencing delays in loading products from oil terminals, a trader said. This has resulted in product shortages for some suppliers. Recommended lead times for both grades have increased from last week's 3–5 days to 4–6 days now.

Prompt HSFO supply has been tight for the third consecutive week in the ARA hub. Some sources said that shortages in HSFO supply have also resulted from delays in the arrival of replenishment cargoes. Lead times of 5–7 days are recommended for the high-sulphur grade.

The ARA’s independently held fuel oil stocks have averaged 8% lower so far in July than across June, according to Insights Global data.

The region has imported 308,000 b/d of fuel oil so far this month, up from 235,000 b/d of fuel oil imported in June, according to data from cargo tracker Vortexa. The UK has been the ARA's biggest fuel oil source this month, accounting for 18% of the region's total imports, followed by Mexico (17%), Lithuania (11%), France (10%) and the US (7%).

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have decreased by 4% so far this month. The region has imported 260,000 b/d of gasoil so far this month, down from 356,000 b/d imported in June, according to Vortexa data.

Availability is normal in Germany’s Hamburg, with prompt delivery dates available, a trader said. Lead times of 3–5 days are generally advised for maximum coverage from suppliers.


Bunker availability is normal in Gibraltar, with lead times of 3–5 days advised by traders.

On Wednesday, the Gibraltar Port Authority cautioned that thick fog could reduce visibility in the port area. Reduced visibility could impact bunkering in the port as barge deliveries become more difficult. Two vessels were waiting for bunkers in Gibraltar on Wednesday, down from three on Tuesday, a source said.

Bunkering was proceeding smoothly in nearby Ceuta on Wednesday, shipping agent Jose Salama & Co. told ENGINE. Bunker fuel availability is normal in the port. Ten vessels were due to arrive for bunkers in Ceuta on Wednesday, up from six on Tuesday, the shipping agent said. Dredging work is still being carried out in the port area, but it has not caused any bunkering delays so far this week.

Availability is normal across all three bunker fuel grades in the Canary Islands’ port of Las Palmas, a trader told ENGINE. Lead times remain unchanged from last week’s 3–5 days for optimal coverage. Calm weather is forecast in Las Palmas for the rest of the week, making it conducive to bunkering.

Demand continues to be low in other bunker ports in the Mediterranean like Piraeus, Malta Offshore and Istanbul, a trader said.

The Greek port of Piraeus has ample availability of VLSFO and LSMGO with lead times of 3–4 days advised. But HSFO is running tight and most suppliers can offer the grade for non-prompt delivery dates. One of the Greek refineries is almost out of HSFO stock, which has led to a supply crunch, a trader said. The grade is expected to remain tight for the remaining days of this month.

Bunkering disruptions are likely to occur between Wednesday and Saturday in Piraeus amid adverse weather conditions forecast in the area. 

Bunker availability is normal in Turkey’s Istanbul port. A trader recommends lead times of 3–4 days in the port area.

Off Malta, availability is normal across all three bunker grades, according to a source. Lead times have remained consistent over the past few weeks at 3–4 days. Rough weather is forecast off Malta on Wednesday and Thursday, which may hamper bunkering in the area.


Algoa Bay’s offshore bunkering suspension remains in force well into its tenth month in July. The suspension began last September after the South African Revenue Service (SARS) detained bunker barges due to import duty disputes. In June, some of the bunker suppliers removed their barges from Algoa Bay amid the suspension.

Supply is currently limited to in-port deliveries by one supplier in Port Elizabeth, which is adjacent to Algoa Bay.

By Manjula Nair


Photo credit and source: ENGINE
Published: 25 July 2024

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Bunker Fuel

Cargo ship “Tony Stark” detained in Spain for bunker fuel spill

Authorities have not allowed the Antigua & Barbuda-flagged ship to leave the port on Africa’s north coast until the owners pay bail of EUR 120,000.





Marine Traffic / Raul Buque

Spain detained a cargo ship for causing a spill during a bunkering operation near the Spanish enclave of Ceuta, according to Reuters on Tuesday (23 July). 

Authorities have not allowed the Antigua & Barbuda-flagged Tony Stark ship to leave the port on Africa's north coast until the owners pay bail of EUR 120,000 (USD 130,129), Reuters reported, citing comments from Spain’s Merchant Fleet. 

Trails of fuel oil were found in front of Benitez beach, the breakwaters of the port and San Amaro beach in Ceuta, in the Alboran sea.

The Merchant Fleet estimated the size of the fuel spill was one metric tonne. It opened a disciplinary procedure that will determine the final fine.


Photo credit: Marine Traffic / Raul Buque
Published: 24 July 2024

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DNV: Leading maritime cities driving decarbonization of shipping

Dr Shahrin Osman, Business Development Director, DNV Maritime Advisory and co-author of Leading Maritime Cities report, explains the central importance that decarbonization and digitalization occupy within shipping.





Dr Shahrin Osman, Business Development Director, DNV Maritime Advisory

Dr Shahrin Osman, Business Development Director, DNV Maritime Advisory and co-author of the Leading Maritime Cities report, explained the central importance that decarbonization and digitalization occupy within shipping in this article published on Tuesday (23 July). 

He outlined how maritime cities are the centres of gravity driving this forward, facilitating innovation and coming up with the solutions which are needed for shipping to reach its ambitious decarbonization goals:

The Leading Maritime Cities report shines a light on the key cities driving the maritime industry forward. With decarbonization and digitalization key factors in today’s maritime world, the report’s co-author explains how these are being advanced by activities in the leading maritime cities.

The latest edition of the Leading Maritime Cities (LMC) report was published in April this year. The collaboration between DNV and Menon Economics delivers fresh insights into the maritime cities which offer the best policy measures, infrastructure and supporting institutions, and how these are driving advancements in the maritime industry.

Leading maritime cities in a world of transition

The LMC report recognizes the central importance that decarbonization and digitalization occupy within shipping. The impact of these two dimensions cuts across the traditional pillars that cities are benchmarked on. To address their transformative effect, this year’s report introduces new indicators – such as capabilities in the adoption of digital technologies and automated processes for port operations, and proactivity in implementing green and sustainable financing practices.

“The maritime industry is in the midst of a major transformation,” says Dr Shahrin Osman, Business Development Director, DNV Maritime Advisory and co-author of the report. “Decarbonization targets mean that the entire industry is looking at how it can undergo a transformation of technologies and fuels to reduce emissions, all of this being supported by advances in digitalization.”

Singapore dominates rankings with strong decarbonization efforts

“Maritime cities are the centres of gravity driving this forward. This is where the leading companies and talents are residing and where the real transformations are taking place. They provide platforms for progress and serve as conduits, linking the industry with the wider global economy.”

Like in the previous edition of this report in 2022, a combination of objective and subjective indicators are used to rank the different cities. Singapore was once again recognized as the leading maritime city, followed by Rotterdam and London, with Shanghai and Oslo making up the remainder of the top five. The Asian city-state hit the top spot in three out of the report’s five pillars, retaining its position as leader in Attractiveness and Competitiveness and overtaking Athens and Shanghai in Shipping Centres and Ports and Logistics. Much of this is due to Singapore’s strong positioning towards decarbonization.

The Silicon Valley of the maritime industry

“Driven by key bodies like the Maritime and Port Authority of Singapore and the Global Centre for Maritime Decarbonization, Singapore has a forward-leaning, future-ready approach. They look at things not just for the next few years, but for the next decade,” says Shahrin. “This includes policies towards building up a multi-fuel infrastructure, the electrification of harbour craft, and the promotion of green shipping corridors.”

“Overall, this has made Singapore an attractive location for shipping businesses, to the point where we now regard it as the Silicon Valley of the maritime industry.”

Government policies driving the green transition in key cities

As the example of Singapore has shown, strong, progressive government policy is one of the key factors behind the evolution of maritime cities, underpinning a forward-leading approach. This can attract companies and top talent to a city, while creating a competitive economic environment with well-developed infrastructure can encourage these actors to stay.

“This is especially relevant for decarbonization initiatives, where returns on investments take longer, and are dependent on wider infrastructure being in place,” says Shahrin. “Government support mechanisms can be crucial in facilitating innovation, so that new products and solutions can be developed.”

Shahrin points to the Norwegian Green Shipping Programme as a prime example of good government policy in action. This brings together public and private actors to overcome key decarbonization barriers, supported by funding from the Norwegian parliament.

Attraction of talent to cities key to progress

Central to the attractiveness and competitiveness of a maritime city is its ability to attract and retain top talent. The presence of research and educational institutions can help to develop talent within that location. The availability of professional opportunities and general high standards of living will encourage leading talents to relocate.

“Achieving technological progress is dependent on aggregating available knowledge that could otherwise be located in silos, and bringing it all together in clusters,” says Shahrin.

Note: DNV’s full Maritime Impact can be viewed here


Photo credit: DNV
Published: 24 July 2024

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