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IBIA: Change in bunkering activity – Red Sea attacks on commercial shipping

Red Sea crisis that developed in Q4 of 2023 has caused some significant and continuing shifts in both global demand patterns and pricing, says Tahra Sergeant of IBIA.

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Tahra Sergeant, International Bunker Industry Association’s (IBIA) Regional Manager of Africa and Global Head of Events, on Monday (1 July) shared on how the Red Sea crisis has reshaped global bunkering demand, particularly in Africa, Singapore, European ports and New York.

The following are excerpts of the article by Sergeant: 

The continued attacks on commercial shipping in the Red Sea have impacted the overall size and patterns of global bunker demand. In simplest terms increased distances travelled and increased speeds have added somewhere between 800,000 and 1,000,000 metric tons per month to global bunker demand. The bunker supply industry has faced two challenges to increase overall supply volumes and to adjust location of bunker supply to reflect differing demand patterns.

Increases in bunkering activity, well outside normal fluctuations, continue to be seen at ports on the African coastline, offshore Africa and Islands close to the Africa Continent. A predictable decrease in bunkering activity has been seen in supply ports of the Eastern Mediterranean. Further significant demand increases are felt at Asian ports (particularly) Singapore, European ports (particularly ARA (Amsterdam, Rotterdam and Antwerp) and Algeciras) and even at New York on the US East Coast.

Overall, the bunker supply industry has been able to both add volume and absorb these shifts in demand although this has not been without its challenges. Ports needed to quickly increase supply with uncertainty over future demand and notably as South Africa market has had to deal with specific localized supply challenges.

This report summarises feedback from various industry sources, focusing on the magnitude of bunker sales, the ability to quantify these changes, supply challenges, and future demand expectations:

Impact on bunker demand:

Africa:

Mauritius (Port Louis): The strategic position of Mauritius makes the island an important bunkering location. Demand for bunkers for most of 2023 was approximately 30,000 metric tons per month which has now increased in Q1 2024 to 60,000 to 65,000 metric tons per month.  

Mozambique: Maputo, Nacala and offshore Mozambique Channel:  Bunker volumes in these locations were limited for most of 2023 but have now anecdotally significantly increased.

South Africa: For the majority of 2023 South African bunker volumes were approximately 130,000 metric tons per month. In the crucial period of Q1 2024 this volume has unfortunately dropped to 80,000 metric tons as explained below.

  • Durban and Richards Bay: Traditionally were significant bunker locations on South African Coast but impacted by local refinery closures.  Limited ability to increase volume.
  • Algoa Bay:  Supplied between 60,000 to 70,000 metric tons per month until Q4 2023 when supply was shut down because of tax and licensing dispute with South African authorities.  This supply location remains inactive and is a major loss for South African bunker supply options.  
  • Cape Town: 2023, limited supply from Astron Refinery.  Demand in 2024 for bunkers supply in Cape Town has increased to approximately 40,000 metric tons per month. With a surplus.

Namibia:  Walvis Bay was a low to medium volume supply location in 2023 with demand reportedly doubling by Q1 2024

West African (WAF) Offshore Supply:  Significant volumes of bunkers are supplied in lightering locations off major West African ports.  These locations are not ideally suited for ships diverting around Africa.  Early 2023 bunker volumes were approximately 210,000 metric tons per month, Q1 2024 closer to 250,000 metric tons.

Europe:

Canary Islands (Spain):  Strategically located off the coast of Africa the Canary Islands has seen bunker demand increase from 315,000 metric tons per month in early 2023 to 370,000 metric tons per month in Q1 2024

Algeciras (Spain):  2023 demand increased from 270,000 metric tons per month to 300,000 metric tons per month in Q1 2024.  However, the western Mediterranean is largely unchanged in demand as ports such as Gibraltar have lost some demand.

Eastern Mediterranean:  Reportedly, demand is down in all locations but limited hard statistical data is available to support this conclusion.  

ARA (Amsterdam, Rotterdam and Antwerp):  Demand has risen from 1.45 million metric tons in 2023 to 1.58 million metric tons in Q1 2024.

North America:

New York: Demand has risen from 350,000 metric tons per month in 2023 to 400,000 metric tons per month in Q1 2024 due to container services usually transiting the Mediterranean not diverting around Africa.

Asia

Singapore: Demand has risen from 4.23 million metric tons per month in 2023 to 4.62 million metric tons per month in Q1 2024.  Singapore has absorbed 40% of the increased demand created by the Red Sea crisis.

Conclusions

The Red Sea crisis that developed in Q4 of 2023 has caused some significant and continuing shifts in both demand patterns and pricing. 

The existing fossil fuel based bunker supply industry and the buyers of bunkers have a well-proven and cooperative ability to adjust to supply and price disruptions whether created by regulation, geopolitical tensions or natural occurrences.

These adjustments are at times challenging and can be damaging or beneficial to different supply locations.

Prices will rise, perhaps to modify over time, but shifts in demand will be recognised and covered. The energy transition within shipping provides potentially more significant challenges in that new lower GHG fuels will at first only be available in limited ports and smaller volumes. Geopolitical disruption may be more challenging to the future bunker supply chain.

Note: The full article by IBIA’s Tahra Sergeant can be found here.

 

Photo credit: International Bunker Industry Association
Published: 5 July, 2024

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Alternative Fuels

Singapore-based Proteus Energy introduces hydrogen fuel cell system for maritime sector

Company has partnered with hydrogen fuel cell company Symbio France to develop the Proteus Maritime Fuel Cell Solution, a modular hydrogen fuel-based system for ports and vessels.

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Singapore-headquartered clean energy provider Proteus Energy on Wednesday (18 June) has developed the Proteus® Maritime Fuel Cell Solution, a modular hydrogen fuel-based system for ports and vessels. 

The first offering is the Proteus®75. Each fuel cell stack is 75 kW output, and these can be combined for larger power requirements. The vessel types being targeted are harbour craft, and vessels in the coastal, offshore support, and in-land waterway segments.

The technology has been developed in partnership with Symbio France, a world leading hydrogen fuel cell company with over 30 years track record. Symbio is jointly owned by global industrial groups Michelin, Stellantis, and Forvia.

“The maritime industry needs viable clean energy solutions today,” said Dr Lars Gruenitz, CEO of Proteus Energy. “We are providing a high energy density solution that is compact and lightweight, which is critical for vessels where space and weight considerations are imperative. This best-in-class system is the logical and most cost-effective choice to help operators make a quantum leap in their decarbonisation efforts”.

The Proteus® Maritime Fuel Cell Solution can be delivered as a modular powerpack or customised and fitted into vessels.

Proteus’ fuel cell technology also complements electric propulsion and offers a powerful solution for hybrid vessels by extending their range and easing the load on batteries, thus improving space efficiency and vessel performance.

The Proteus® Maritime Fuel Cell Solution will be backed by a two-year performance guarantee from Symbio France.

Symbio’s systems have already logged millions of kilometers powering cars, buses and commercial trucks across Europe. Now, that same rigorous, road-tested performance is being deployed at sea with added protections for marine operating conditions.

The fuel cell stacks are produced at Symbio’s gigafactory in Lyon, France, using robotic assembly systems capable of producing thousands of units annually.

This high-throughput capability ensures that Proteus can meet rising demand without sacrificing quality – something only established and proven hydrogen fuel cell manufacturers can claim.

What also sets Proteus apart is its ability to bring economies of scale, continuous R&D, and tried and tested reliability from land transport into the marine environment. 

To provide a convenient fuel storage option, Proteus also offers high-pressure hydrogen storage tanks developed with its partner Forvia, a major global components and technology company. The DNV type-approved tanks, which are already available for delivery, offer a safe and easy way to store hydrogen onboard vessels and will be produced on an industrial scale.

In addition, Proteus works with port operators to provide them with customised refueling solutions and infrastructure.

The Proteus® Maritime Fuel Cell Solution is expected to be available for delivery beginning January 2026, with type approval from DNV anticipated before the end of this year. Proteus is ready to work with customers now.

 

Photo credit: Proteus Energy
Published: 19 June, 2025

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Sanctions

UK slaps sanctions on bunker company and Russian shadow fleet of oil tankers

Government has imposed sanctions on 20 oil tankers and Rosneft’s bunker fuel trading subsidiary Rosneft Marine (UK) Limited, in its latest action targeting Russia’s financial, military and energy sectors.

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The UK government on Tuesday (17 June) has imposed sanctions on 20 oil tankers and Rosneft’s bunker fuel trading subsidiary Rosneft Marine (UK) Limited, in its latest action targeting Russia’s financial, military and energy sectors.

The new sanctions crack down further on Russia’s shadow fleet, targeting 20 of oil tankers. The UK is also tightening the net around those who enable Putin’s illicit oil trade, sanctioning Orion Star Group LLC and Valegro LLC-FZ, for their role in crewing and managing shadow fleet vessels. 
The action also targets Russia’s military capabilities, hitting the military agency leading the development of Russia’s underwater intelligence gathering operations (GUGI), protecting the UK from attacks on subsea infrastructure, restricting Putin’s war machine and increasing our security at home. 

“These sanctions strike right at the heart of Putin’s war machine, choking off his ability to continue his barbaric war in Ukraine,” Prime Minister Keir Starmer said.

“We know that our sanctions are hitting hard, so while Putin shows total disregard for peace, we will not hesitate to keep tightening the screws.

“The threat posed by Russia cannot be underestimated, so I’m determined to take every step necessary to protect our national security and keep our country safe and secure.”

According to Rosneft’s website, Rosneft Marine UK, a Rosneft trading division, was established in 2010 to carry out bunker fuel trading for international cargo shipping.

In 2010, an office was opened in London, then in Beijing in 2012.

 

Photo credit: balesstudio on Unsplash
Published: 19 June, 2025

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Ammonia

DNV awards AiP to SeaTech Solutions for new ammonia bunkering vessel design

Vessel is specifically designed to deliver low-carbon ammonia to ammonia dual-fuelled bulk carriers at the Port of Dampier and can supply up to 9,000cbm of fuel.

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DNV awards AiP to SeaTech Solutions for new ammonia bunkering vessel design

Classification society DNV on Wednesday (18 June) said it has awarded an Approval in Principle (AiP) to SeaTech Solutions International (SeaTech) in collaboration with Oceania Marine Energy (Oceania) for the design of a new 10,000cbm ammonia bunkering vessel. 

This AiP builds on a recent Memorandum of Understanding (MoU) between DNV, SeaTech, and Oceania, initiated at Singapore Maritime Week and signed in April this year.

Located in the Pilbara region, home to the world’s largest bulk export port, the Port of Dampier is emerging as a potential hub for low-carbon ammonia bunkering.

Driven by a rising demand for low- and zero-carbon shipping fuels from the region’s mining and export industries, the port has built considerable experience in dealing with ammonia cargoes and vessels and is developing a strategy to facilitate ammonia bunkering operations. This includes the successful completion of its first ship-to-ship pilot bunkering transfer in September 2024. 

Measuring 130-metres, the ammonia bunkering vessel is specifically designed to deliver low-carbon ammonia to ammonia dual-fuelled bulk carriers at the Port of Dampier. It can supply up to 9,000cbm of fuel, sufficient to support two round-trips of iron ore shipment between Australia and North Asia. The vessel’s optimized arrangement and advanced containment systems enable efficient ship-to-ship transfers while ensuring the safe handling of ammonia as both a cargo and marine fuel.

Nick Bentley, Managing Director at Oceania Marine Energy, said: “Oceania is proud to have worked in tandem with DNV and SeaTech to deliver a flagship, low-emissions marine fuel solution at the heart of Australia’s heaviest resource export hub. The completion of this MOU and Approval in Principle (AiP) award by DNV for our 10,000m³ clean ammonia bunker vessel marks a major milestone in developing the supply and bunker operation foundations for the low-carbon shipping Pilbara–Asia green-corridor.

“This initiative reinforces Oceania’s commitment to deliver 1 million tonnes of clean marine fuel by 2030 and positions Dampier in Western Australia as a future leader, enabling the shipping industry’s transition to near net-zero marine fuel.”

Prabjot Singh Chopra, Vice President of Technology at SeaTech Solutions, said: “We are proud to work alongside Oceania and DNV to bring this innovative ammonia bunkering vessel design to life. As part of the maritime industry’s multi-fuel transition to low- and zero-carbon energy, ammonia stands out as a viable option for long-haul shipping—and enabling its safe and efficient delivery is critical.”

“Our vessel design incorporates a high level of automation and smart control systems to ensure safe handling of ammonia, enhancing both crew safety and operational reliability during ship-to-ship transfers. This Approval in Principle marks a key milestone, not just for the vessel, but for the broader ecosystem that must be in place to support ammonia bunkering. With Dampier emerging as a green marine fuel hub, and with SeaTech (Australia) actively engaged in supporting decarbonisation initiatives aligned with Australia’s net zero ambitions, we bring a strong track record and deep expertise to deliver practical, scalable solutions that enable the decarbonisation of global shipping.”

Antony M Dsouza, Senior Vice President & Regional Manager, South East Asia, Pacific & India, Maritime at DNV, added: “Scaling up production and bunkering infrastructure remains one of the biggest challenges in the maritime energy transition, and will be vital to the adoption of alternative fuels at scale.”

“This AiP is another step in realizing operationally ready bunkering capabilities and strengthening industry confidence in the potential of ammonia as a carbon-free fuel for shipping. At DNV, we’re proud to support forward-thinking partners like SeaTech and Oceania with the trusted technical assurance and deep expertise needed to realize the industry’s decarbonization ambitions.”

DNV has a long history of working on initiatives to support the development and uptake of ammonia as a marine fuel, including a recent ammonia bunkering safety study for the Global Centre for Maritime Decarbonisation (GCMD), which was utilized in the ship-to-ship ammonia transfer pilot at the Port of Dampier.

Related: GCMD: STS ammonia transfers pave way for ammonia bunkering in Pilbara region

 

Photo credit: DNV
Published: 19 June, 2025

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