Bunker Fuel

IBIA on navigating new waters: Africa’s role in global bunkering

Repercussions of geopolitical and strategic shifts are already evident in the changing bunkering volumes across various African ports including Port Louis and Walvis Bay, says Tahra Sergeant of IBIA.

Published

9 months ago

March 14, 2024

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Tahra Sergeant, International Bunker Industry Association Board’s (IBIA) Regional Manager of Africa and Global Head Events

Tahra Sergeant, International Bunker Industry Association’s (IBIA) Regional Manager of Africa and Global Head Events, on Friday (8 March) released an article after spending a week in Cape Town with the regional and global bunker industry, taking a look at the opportunities and pitfalls of bunkering in Africa:

Amidst maritime tensions and regional disruptions, Africa’s eastern coast is emerging as a new hub for bunkering services, signalling a pivotal shift in the marine fuels sector.

In recent times, the maritime industry has found itself navigating through a sea of challenges and changes, particularly with the persistent tensions in the Red Sea region. These geopolitical ripples have led to a strategic re-routing of vessels around the Cape of Good Hope, spotlighting the potential of African nations such as Djibouti, Kenya, Tanzania, and Mozambique to significantly bolster their bunkering services. This development is not merely a response to circumstances but a testament to the continent’s burgeoning capability to redefine its position within the global maritime economy.

Ambassador Nancy Karigithu, Kenya’s Special Envoy and Presidential Advisor for Maritime and Blue Economy, has been at the forefront of advocating for this transformative vision. Speaking at Maritime Week Africa, she emphasised the need for substantial investment in maritime infrastructure, including the development of storage tanks, pipelines, and terminals. Such enhancements are crucial for accommodating the increasing demand for bunkering services, thereby attracting international investors and stimulating economic growth along Africa’s east coast.

Ambassador Karigithu underscored the importance of collaborative ventures in this evolving landscape. She proposed that African bunkering companies forge partnerships with international shipping and fuel suppliers to leverage collective expertise, technology, and market access. This collaborative approach is pivotal for driving growth in Africa’s marine fuels sector, making it more resilient and adaptable to the dynamic demands of global shipping.

The call for bolstered maritime security was another critical point raised by Ambassador Karigithu, especially in the wake of recent shipping attacks in the Red Sea. Enhancing security measures is essential for building confidence among shipping operators, which, in turn, would lead to an increased utilisation of African bunkering services. A secure and reliable maritime environment is foundational for the sustainable growth of the bunkering sector.

The repercussions of these geopolitical and strategic shifts are already evident in the changing bunkering volumes across various African ports. For instance, the closure of Algoa Bay resulted in an immediate spike in volumes at Port Louis and Walvis Bay.

Port Louis, in particular, saw its bunkering volume double, propelled by its competitive market and the presence of high-quality, low-cost VLSFO suppliers. This saturation and competitiveness are beneficial for keeping prices favourable for shipping companies and for Mauritius, enhancing its allure as a bunkering destination.

Durban port witnessed a modest increase in bunkering activities, primarily from vessels already scheduled to call at the port. The challenges faced by Durban, particularly in selling imported MGO duty-free for export due to tax legislation issues, highlight the broader need for modernising customs and tax laws to support efficient bunkering operations in South Africa.

Cape Town and Luanda are also reaping the benefits of the current maritime shifts. Cape Town has seen significant increases in bunkering volumes, aided by the addition of two barges, despite the high local prices. Luanda, with its local refinery, has become an attractive option for buyers seeking the continent’s cheapest VLSFO, despite the uncertainties surrounding supply operations.

The emergence of Walvis Bay as a key player in capturing the rerouted trade further illustrates the dynamic changes within the African bunkering landscape. The steady increase in volumes since September, with a notable surge post-December, underscores the port’s growing significance in the industry.

These developments call for a concerted effort to modernise customs legislation and improve port operations across Africa. Such reforms are crucial for enhancing the continent’s attractiveness as a bunkering location and fostering a more efficient and competitive bunkering sector. Engaging with legislative processes and advocating for private partnerships in port management are essential steps toward achieving this goal.

As the Regional Manager (Africa), I am witnessing an era of potential growth and transformation in Africa’s bunkering sector. The continent’s strategic response to recent maritime challenges, coupled with a proactive approach to infrastructure development and international collaboration, will set the stage for a more prominent role in the global maritime economy.

The current momentum not only presents an opportunity for Africa to cement its position as a bunkering hub but also serves as a call to action for stakeholders to navigate these new waters with foresight, cooperation, and a shared vision for a prosperous maritime future.

Photo credit: International Bunker Industry Association
Published: 14 March 2024

Business

Singapore: Sing Fuels appoints Sanket Naik as Managing Director

Sanket joined Sing Fuels in 2016 as a Credit Manager and has ‘immersed himself’ in all departments; will drive company to expand into areas like sustainability and biofuels.

Published

8 hours ago

December 9, 2024

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Singapore: Sing Fuels appoints Sanket Naik as Managing Director

Singapore-based provider of marine fuel solutions Sing Fuels on Saturday (7 December) said Sanket Naik, was recently promoted to Managing Director of Sing Fuels.

The firm said Sanket joined Sing Fuels in 2016 as a Credit Manager.

“He immersed himself across all departments, ranging from investment to business development, gaining a 360-degree understanding of the business and serving as a key driver of growth and success at Sing Fuels,” Sing Fuels said in a social media post.

“As Managing Director, Sanket is poised to drive Sing Fuels 3.0, expanding into areas like sustainability and biofuels, ensuring we stay at the forefront of industry innovation.”

Photo credit: Sing Fuels
Published: 9 December, 2024

Legal

Vietnam: Two vessels seized over 31,000 litres of illegal diesel oil

Vietnam Coast Guard said vessels were transporting various quantities of oil material: “HP-3790” was transporting about 16,000 litres and “Phuong Nam 68” transported about 15,000 liters.

Published

8 hours ago

December 9, 2024

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The Vietnam Coast Guard on Thursday (5 December) said it detained vessel HP-3790 in the sea bordering Hai Phong City and Quang Ninh Province.

The Coast Guard discovered the ship at 2pm on 4 December displaying several suspicious signs and ordered the vessel to stop for administrative inspections.

The authority proceeded to inspect the vessel, which had three crew members on board, and found it to be transporting about 16,000 litres of diesel oil with no invoices or documents proving its legal origin.

HP 3790

The Coast Guard also detained another ship, Phuong Nam 68, that also had three crew members on board at 10am on 5 December.

The ship was transporting about 15,000 liters of DO oil with no invoices or documents proving its legal origin.

As such, the ships were handed over to the Command of Coast Guard Region 1 for further investigation and handling in accordance with the provisions of law.

Photo credit: Vietnam Coast Guard
Published: 9 December, 2024

Alternative Fuels

DNV: Use of ammonia as a bunker fuel among highlights in IMO MSC 109

Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted and interim guidelines for the general use of ammonia as fuel were approved during session.

Published

8 hours ago

December 9, 2024

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Classification society DNV on Saturday (7 December) shared a statutory news article that provides a summary of the 109th session of the International Maritime Organization’s (IMO) Maritime Safety Committee (MSC 109) including adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel and approved draft interim guidelines for ammonia as a marine fuel.

The following is an excerpt from the news update relating to bunker fuels:

The 109th session of the IMO’s Maritime Safety Committee (MSC 109) was held from 2 to 6 December 2024. Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted, and interim guidelines for the general use of ammonia as fuel were approved. The IGF Code was amended to improve the safety of ships using natural gas as fuel. MSC 109 further approved draft SOLAS amendments to enhance the safety of pilot transfer arrangements and progress was made on the new safety code for Maritime Autonomous Surface Ships.

Meeting highlights

Adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel
Adopted amendments to the IGF Code for ships using natural gas as fuel
Approved draft interim guidelines for ammonia as fuel
Approved draft amendments to SOLAS Regulation V/23 and the related performance standards to improve the safety of pilot transfer arrangements
Advanced the non-mandatory Code on Maritime Autono- mous Surface Ships (MASS)

Amendments to mandatory instruments

Ammonia cargo as fuel (IGC Code) MSC 109 adopted amendments to Paragraph 16.9.2 of the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code) to enable the use of ammonia as fuel on ammonia carriers.

An MSC circular to encourage the voluntary early implementation of the amendments to Chapter 16 was approved.

The amendments will enter into force on 1 July 2026.

Safety of ships using natural gas as fuel (IGF Code)

MSC 109 adopted amendments to the International Code of Safety for Ships Using Gases or Other Low-flashpoint Fuels (IGF Code), based on experience with the code since its entry into force in 2017.

The amendments include:

Clarified application provisions
Alignment with the IGC Code on suction wells for fuel tanks extending below the lowermost boundary of the tank
Alignment with the IGC Code on discharge from pressure relief valves to discharge to tanks under certain conditions
Clarified requirements to fire insulation for deck structures in relation to fuel tanks on open deck
Clarified requirements for hazardous ducts through non-hazardous spaces and vice versa
Updated requirements for the hazardous zone radius for fuel tank vent mast outlets, increasing to 6 metres for zone 1 and 4 metres for zone 2

The amendments will enter into force on 1 January 2028.

Goal-based new ship construction standards

Goal-based standards (GBS) for the new construction of bulk carriers and oil tankers are, conceptually, the IMO’s rules for class rules. Under the GBS, IMO auditors use guidelines to verify the construction rules for bulk carriers and oil tankers of class societies acting as Recognized Organizations (Resolution MSC.454(100)).

Initial GBS verification of Biro Klasifikasi Indonesia (BKI) BKI has requested GBS verification of their ship construction rules for bulk carries and oil tankers. MSC 109 agreed that the BKI rules comply with the GBS, provided non-conformities and observations are rectified and verified in a new audit.

North Atlantic wave data (IACS Recommendation No. 34, Revision 2) MSC 109 noted that IACS is currently undertaking a review of its Common Structural Rules (CSR) for bulk carriers and oil

tankers to reflect advances in data, materials, technologies and calculation methodologies. The CSR are implemented in the individual class rules of the IACS members, which are subject to compliance with the GBS.

MSC 109 further noted that IACS has now issued a revision of the North Atlantic wave data to ensure more scientific data as a basis for the rule formulas in the CSR. The new scatter diagram in Revision 2 of IACS Recommendation No. 34 shows the probability of occurrence of different sea states and is based on wave data from advanced hindcast wave models combined with ships’ AIS data for all SOLAS vessels in the period from 2013 to 2020.

MSC 109 agreed that an observation from the initial CSR audit in 2015, that the scatter diagram in Revision 1 of IACS Recommendation No. 34 was based on past statistics, was now considered addressed.

MSC 109 further invited IACS to provide more information about the assumptions, modelling and technical background for Revision 2 of IACS Recommendation No. 34, and agreed that the GBS audit of the revision to follow should be carried out in conjunction with the consequential rule changes in the CSR.

New technologies and alternative fuels

Identification of gaps in current IMO instruments MSC 109 continued its consideration of potential alternative fuels and new technologies to support the reduction of GHG emissions from ships from a safety perspective. The intention is to identify safety obstacles, barriers and gaps in the current IMO instruments that may impede the use of the various alter- native fuels and new technologies.

MSC 109 agreed to add “swappable traction lithium-ion battery containers” to the list of alternative fuels and new technologies. The list already includes fuels and technologies such as ammonia, hydrogen, fuel cell power installations, nuclear power, solar power, wind power, lithium-ion batteries and supercapacitor energy storage technology.

Recommendations to address each of the identified barriers and gaps in the IMO regulatory framework will be considered in a Correspondence Group until MSC 110 (June 2025). Application of the IGF Code

MSC 109 agreed on draft amendments to SOLAS to clarify that the IGF Code applies to ships using gaseous fuels, whether they are low-flashpoint or not. The term “gaseous fuels” was added to the definitions in SOLAS Regulation II-1/2 and to the application provisions of SOLAS Regulations II-1/56 and 57.

The draft amendments are expected to enter into force on 1 January 2027, subject to adoption by MSC 110 (June 2025).

Carriage of cargoes and containers

Ammonia as fuel

MSC 109 approved draft interim guidelines for the safety of ships using ammonia as fuel.

Ships carrying liquefied gases in bulk (IGC Code)

MSC approved draft amendments to the IGC Code to incorporate the large number of Unified Interpretations developed since the latest major review of the code, which entered into force in 2016. The primary objective of the draft amendments is to remove ambiguity and promote the consistent implementation of the IGC Code requirements.

Photo credit: CHUTTERSNAP on Unsplash
Published: 9 December, 2024