Connect with us

Uncategorized

KPI OceanConnect: Modern bunker traders need to act as trusted partners after 2020

Post pandemic, players in the bunker industry need to adapt local and technical expertise, global coverage, and financial and organizational strength, said MD.

Admin

Published

on

James Enston 1

James Enston, Managing Director at KPI OceanConnect, a global independent marine energy service and solutions provider, on Monday (4 January) published a reflection of how the company weathered through the trials of 2020 and provided strategies on how the bunker industry needs to adapt in order to grow in the new environment:

Twelve months ago, some analysts predicted that the impact of IMO 2020 could be as momentous as when ships’ switched fuel types from coal to fuel oil. They often went on to predict widespread availability issues, compatibility problems, and high prices. With the exception of a few weeks at the start of the year, none of them have proven to be as consequential as those analysts feared.

Covid-19 has impacted every industry in different ways, and it is no surprise that it has been one of the factors dominating a sector as diverse and global as bunkering. The pandemic has had a major impact on marine fuels throughout the year. In some sectors, such as cruise, there was very minimal demand for many months. In others, such as containers, demand has fluctuated massively.

Twelve months ago, there were concerns that some regions would not be able to supply enough distillate fuels to meet demand for both domestic and post-IMO 2020 maritime needs. However, the global reduction in fuel demand from land sectors produced by the pandemic has meant that more than enough compliant bunkers have been available for shipping.

On the supply side, it is easy to forget that disagreements within OPEC+ in February and March over how much crude oil to produce rapidly increased oil production. Although some agreements on limiting capacity have been made, there remain several key oil producers still ‘offline’ and this means that latent supply is likely to continue to exceed actual demand for some time to come.

Yet it is important to remember that we will see a return to oil demand equilibrium at some point. As other industries return to work, and when refineries have worked through the surplus crude oil in their systems, some of the risks highlighted twelve months ago may rear their head once more – although the severest predictions we saw in 2019 are unlikely to come to pass.

A volatile year

There has been an unprecedented level of volatility across bunker prices this year. For example, VLSFO prices in Rotterdam fell from roughly $600 per ton in January to $150 per ton in May and have since risen to the low $300s. This has presented a textbook example of why it pays to consider hedging as part of a viable bunker procurement strategy.

Big price moves are nothing new in the marine fuels industry. Indeed, the market had already seen a series of more volatile years in the lead up to 2020. Shipowners, charterers, and bunker suppliers are left exposed by even modest price movements, let alone the dramatic shifts we have seen over the past 11 months.

Unexpected cost spikes can quickly eat into liquidity, let alone profitability. The only way to navigate these hazards is to implement a comprehensive and robust risk management strategy. This requires planning, an expert understanding of the risks involved, and sound financial backing.

As vaccine roll-outs commence, life will eventually return to ‘normal’ for other petrochemical-intensive industries and demand for distillates will rise. However, it is not realistic to expect bunker markets to maintain stability in the medium term.

A new dynamic

The complexity of marine fuels increases the more they are regulated. IMO 2020 has created new issues for shipowners to consider before any fuel purchase; where at one time a buyer might only have to worry about price, today they also have to consider compliance, compatibility, and availability.

This new dynamic means that the traditional, commoditised relationship between bunker suppliers and customers no longer delivers the kind of value that shipowners need. Modern bunker traders need to act as trusted partners, acting transparently and collaboratively with customers and stakeholders across the industry to implement bespoke ‘energy’ strategies that meet a shipowner’s needs, now and in the future.

As price volatility is expected to persist, at least for the medium term, risk management is becoming even more critical. This must be included in any ‘energy’ strategy, with hedging and other measures in place to safeguard a client’s liquidity from abrupt cost rises – and modern bunker traders need to be equipped with the financial strength, comprehensive insurance, and specialist knowledge to deliver this.

In this new environment, some players in the bunker industry will need to change to stay relevant and significantly adapt their business model. Local and technical expertise, global coverage, and financial and organisational strength are the base requirements to deliver in this new environment.

Earlier this year, we finalised the merger between KPI Bridge Oil and OceanConnect Marine to create KPI OceanConnect. There were a lot of clear synergies in our “people first” and consultative approach from the start, and it has already allowed us to create an organisation that not only meets these criteria but delivers advanced marine energy solutions on a global scale. Bringing together even more knowledge and expertise, new ideas and ways of thinking, and a renewed energy to a changing marketplace has been an exciting task that leaves us primed to offer even greater levels of service and confidence for our partners as the market rapidly changes.

There are challenges ahead for the industry, as bunkering transitions from a commoditised, purely transactional process to delivering comprehensive consulting services. This will become ever more important as we see greater complexity across technical, logistical and financial concerns. I am confident that the knowledge and approach we have mainstreamed in KPI OceanConnect makes us perfectly placed to help the industry manage this change, and continue to reliably deliver for our partners in the future.

 

Photo credit: KPI OceanConnect
Published: 6 January, 2020

Continue Reading

Bunker Fuel Availability

ENGINE: Europe & Africa Bunker Fuel Availability Outlook (1 April 2026)

East Mediterranean ports see high demand; Malta sees rough weather; high demand increases lead times in West Africa.

Admin

Published

on

By

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:

  • East Mediterranean ports see high demand
  • Malta sees rough weather
  • High demand increases lead times in West Africa

Northwest Europe

Availability of all fuel grades is stable in the ARA bunkering hub, but buyers are recommended to enquire about stems around five days ahead to get competitive offers from a wide selection of suppliers, a trader said.

The ARA’s independently held fuel oil stocks slumped 20% lower in March, according to Insights Global data.

The region imported around 160,000 b/d of fuel oil in March, down from 192,000 b/d imported in February, according to cargo tracker Vortexa. Most supplies have arrived from Denmark (21%), Poland (14%) and Libya (13%).

The region’s independent gasoil inventories – which include diesel and heating oil – have dipped 1% lower in March, compared to February.

The ARA imported 289,000 b/d of gasoil, down from the 304,000 b/d in February, according to Vortexa data. Around 27% of cargo volumes have come from Kuwait, while the US has sent around 24%.

In Germany’s Hamburg, buyers are being advised to book stems with a lead time of five days, a trader said.

Bunker fuel availability is very tight in Sweden’s Gothenburg and off Denmark’s Skaw, a trader told ENGINE.

Mediterranean

Securing supplies promptly is challenging in the Gibraltar Strait ports, and buyers are advised to book around seven days in advance to secure supplies of any fuel grade, a trader said.

Demand is stable in the Port of Gibraltar, with around 40 vessels expected to call for bunkers between 1-8 April, shipping agent A Mateos & Sons said.

Congestion caused in the port last week due to rough weather conditions has completely cleared as of Wednesday morning, port agent MH Bland said.

In Barcelona, buyers are usually requested to give a week’s notice for any delivery, but supplies can be arranged sometimes on a prompt basis, a trader told ENGINE.

Bunker availability is tight in the Canary Islands bunkering hub of Las Palmas, a trader said. Suppliers are giving earliest delivery dates around 10 days out for stems with competitive prices, the trader added.

Bunkering operations are currently being conducted in the inner anchorage and at the berth due to rough seas, port agent MH Bland said.

Malta is experiencing rough winds of more than 25 knots and waves of more than 2.5 metres, and the conditions are expected to persist until 3 February.

Bunkering operations off Malta have been currently suspended, port agent MH Bland said.

Some operations can be conducted in the sheltered Area 1 and Area 4, and operations are expected to resume normally in the offshore area around Saturday, shipping agent WMR told ENGINE.

Bunker demand has decreased recently off Malta, a trader said.

Fuel availability is steady in the Greece’s Piraeus, but high demand for bunkers is causing operational challenges related to barge and berth availability, a local supplier said. The port may face tight product availability around late April or early May if the conflict continues and crude flows through the Strait of Hormuz continue to remain disrupted, the supplier added.

Fuel availability is stable in Turkey’s Istanbul and demand is very strong, a local supplier told ENGINE. Buyers are securing bunkers as they anticipate tight availability next month, the supplier added.

Africa

Ships re-routing around the Cape of Good Hope have increased bunker demand in African ports, suppliers and traders told ENGINE.

West African ports are experiencing low product availability as demand is rising and supply is not able to keep up, a major supplier in West Africa said.

Lead times have increased significantly in many bunkering hubs due to the additional demand.

In Togo’s Lome and off Namibia’s Walvis Bay, buyers are recommended to enquire about stems around 10-11 days ahead, a trader said.

In Angola’s Luanda, one supplier has stopped supplying VLSFO, while LSMGO supplies may need around 7-10 days of notice, a supplier told ENGINE.

Getting VLSFO supplies in Nigeria’s Lagos anchorage also requires around 10 days of notice, a local supplier said.

In South Africa, availability is stable off Algoa Bay, a trader said. In Durban, LSMGO is priced around $3000/mt.

By Nachiket Tekawade

 

Photo credit and source: ENGINE
Published: 2 April 2026

Continue Reading

Uncategorized

IMO: Caribbean maritime leaders draft policy recommendations to decarbonize shipping

Participants focused on moving from analysis to implementation by aligning policy, infrastructure planning, energy systems and finance.

Admin

Published

on

By

IMO: Caribbean maritime leaders draft policy recommendations to decarbonize shipping

The International Maritime Organization (IMO) on Tuesday (3 February) said Caribbean policymakers and financiers have emphasized that decarbonization will not succeed through isolated projects or technologies alone, but through coordinated action across sectors and countries, supported by evidence-based planning and investment-ready pathways. 

Senior representatives from Caribbean governments, maritime administrations, ports, energy authorities, development banks and financial institutions met for a regional roundtable convened in Port of Spain, Trinidad and Tobago (29 – 30 January) by IMO’s GreenVoyage2050 Programme, in collaboration with Global MTCC Network (GMN Phase II). 

The event, under the theme Unlocking maritime decarbonization, resulted in key draft policy recommendations for the region, including proposals for: 

  • enhanced regional coordination to harmonize national policies; 
  • knowledge-sharing; 
  • capacity building; and 
  • investment facilitation.  

Participants focused on moving from analysis to implementation by aligning policy, infrastructure planning, energy systems and finance. The participation of multilateral and regional development banks alongside policymakers and industry linked technical ambition with financial realism at an early stage. 

Dr Jose Matheickal, Director of the IMO’s Technical Cooperation and Implementation Division, underscored the need to bridge global ambition and national delivery: “The IMO GHG Strategy sets a clear global direction, but implementation happens at country and regional level. What is critical is creating the conditions, policy, institutional capacity and credible project pipelines, that allow finance to flow and turn ambition into action.” 

The first day of discussions connected the 2023 IMO GHG Strategy with delivery through technical cooperation and regional collaboration.  

Findings from the Jamaica Maritime Alternative Fuels Study, supported by the GreenVoyage2050 Programme, were shared to ground the regional dialogue in a concrete country example. The study illustrated how Caribbean States can assess future fuel demand, supply pathways, infrastructure needs and policy implications to inform investment and planning decisions. 

Building on this evidence, participants discussed credible fuel pathways for the region, barriers to adoption and where regional coordination could accelerate progress. Interactive mapping exercises captured existing initiatives, infrastructure gaps and opportunities for collaboration across the Caribbean, while practical examples demonstrated how policy intent is already translating into action through green port development, fleet initiatives and pilot projects. 

 

The second day of the roundtable focused on unlocking investment, with development banks and financial institutions outlining what is needed to improve project bankability and mobilize public and private finance.  

Discussions explored financial instruments, risk-sharing approaches and policy signals required to support investment in ports, clean fuels and maritime infrastructure, reinforcing the importance of aligning national priorities with financier expectations. 

Ms Thandi McAllister, Director – Legal Services, Maritime Administration Department, Guyana, said: “This Regional Roundtable provided a vital platform for States and other maritime stakeholders to gain valuable insights into the impact and opportunities that are optimizable by Caribbean SIDs and LDCs in their pursuit of decarbonisation goals.” 

Finally, the participants visited the ammonia-fuelled ship Fortescue Green Pioneer for a first-hand look at alternative fuel technology in use onboard.

 

Photo credit: International Maritime Organization
Published: 5 February, 2026

Continue Reading

Uncategorized

ICS and 47 governments submit GHG pricing mechanism proposal to IMO

Key purpose of mandatory GHG charge will be to reduce cost gap between zero/near-zero GHG emission fuels and conventional bunker fuels to incentivise accelerated uptake of green energy sources.

Admin

Published

on

By

IMO

The International Chamber of Shipping (ICS) on Thursday (9 January) said it has joined 47 governments in a joint submission to the final round of negotiations at the United Nations’ International Maritime Organization (IMO) to adopt a maritime greenhouse gas (GHG) emissions pricing mechanism to achieve net zero GHG emissions from international shipping by 2050. 

The joint text is supported by major shipping nations such as Greece, Japan, Korea and the United Kingdom, the world’s largest flag States including Bahamas, Liberia, Marshall Islands and Panama, all EU States (and the European Commission), other African countries such as Nigeria and Kenya, plus Small Island Developing States from the Caribbean and the Pacific.

The joint submission by governments sets out convergent regulatory text for amendments to the IMO MARPOL Convention, which will require shipping companies operating ships on international voyages to make GHG contributions per tonne of CO2e emitted to a new “IMO GHG Strategy Implementation Fund”.

ICS said the key purpose of this mandatory GHG charge will be to reduce the cost gap between zero/near-zero GHG emission (ZNZ) fuels such as green methanol, ammonia and hydrogen and conventional bunker fuels, to incentivise the accelerated uptake of green energy sources. 

Revenue generated will be used to reward the production and uptake of ZNZ marine fuels, whilst also providing billions of US dollars annually to support the maritime GHG reduction efforts of developing countries.

International Chamber of Shipping Secretary General, Guy Platten, said: “The industry fully supports the adoption by IMO of a GHG pricing mechanism for global application to shipping.”

“The joint text put forward by this broad coalition is a pragmatic solution and the most effective way to incentivise a rapid energy transition in shipping to achieve the agreed IMO goal of net zero emissions by or close to 2050.”

“We are very pleased that such a large and diverse group of nations now firmly supports a common approach to maritime carbon charging. This proposed joint text has been hard fought and is broadly based on ideas which ICS has been advocating for the past ten years.

“While a large number of governments now support a universal flat rate GHG contribution by ships – or something similar – a minority of governments continue to have concerns. Working in co-operation with all IMO Member States we will do our best to allay such concerns during the final stages of these critical negotiations about regulatory text.”

This mature regulatory proposal will be considered by a critical IMO meeting in February – in the week of 17 February 2025 at ISWG-GHG 18. 

If the MARPOL amendments are approved by IMO in April 2025, they should enter into force globally in early 2027, with the collection of annual GHG contributions from ships commencing in 2028.

Note: The joint proposal to IMO for a maritime GHG emissions pricing mechanism can be found here.

 

Photo credit: International Maritime Organization
Published: 10 January, 2025

Continue Reading

Trending