New FOBAS report flags ‘significant concern’ over off-spec bunker fuel issues

Lloyd’s Register’s Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) on Thursday (27 February) highlighted rising biofuel uptake, ongoing issues with off-specification fuels and the impact of new regulatory measures in its latest report. 

Mirroring trends from the first half of 2024, the FOBAS Fuel Quality Report H2 2024 identified off-specification sulphur content results as a significant concern.  

Almost 2.5% of tested Very Low Sulphur Fuel Oil (VLSFO) samples, particularly ISO8217 RMG380 grade, recorded sulphur levels between 0.50% mass and 0.53% mass. 

“Although these fuels technically comply with MARPOL Annex VI regulations when accounting for test precision allowances, they continue to create uncertainty for ship operators,” it said. 

A further 0.8% of VLSFO samples exceeded 0.53% mass, placing vessels at risk of non-compliance. 

“The data shows some improvement from 2023, but suppliers are urged to aim for stricter adherence to the 0.50% limit to avoid compliance disputes,” it added.

The report also highlighted that total sediment remained a major issue, with 2024 seeing a rise after previous improvements. Asphaltene instability in fuel blends is a common cause, with Houston and Antwerp identified as high-risk areas in this respect.  

Distillate fuels, while generally of higher quality, also presented issues, particularly in cold flow properties and compliance with the SOLAS flash point requirement of minimum 60oC. The number of marine gas oil (MGO) samples with flash points below 60oC increased in 2024, a trend that poses both statutory compliance and safety risks. This can partly be attributed to unintentional or intentional mixing with automotive diesel in some countries which has a lower flash point limit.  

Looking ahead, the report anticipated that the Mediterranean SOx (Sulphur Oxides) Emission Control Area (SECA), may alter bunkering patterns and fuel quality in specific ports. Ships operating in the Mediterranean will need to use fuels with a sulphur content of 0.10% mass or lower, unless using approved SOx abatement technology. This regulatory shift may drive changes in fuel availability and pricing across key Mediterranean ports, requiring careful planning by ship operators.

The latest analysis from FOBAS also highlighted a significant increase in biofuel usage, primarily driven by EU and IMO regulations, including the Mediterranean SECA coming into effect on 1 May 2025. 

Biofuels continue their rise in the marine fuel mix, driven by regulatory incentives and industry decarbonisation commitments. 

The report noted the increasing use of Fatty Acid Methyl Ester (FAME) residual blends (RF grade), particularly in Singapore, Algeciras, and the ARA region. 

“While many vessels have successfully adopted biofuels without reported issues, concerns remain regarding transparency in composition and the potential risk of unknown quality biofuel stocks entering the supply chain,” it said.

 Usman Muhammad, FOBAS Product Manager, said: “Fuel quality continues to be a key operational concern for the maritime industry. While we see some improvements in certain areas, the recurrence of high sediment levels, sulphur compliance issues, and emerging challenges with biofuels underline the need for rigorous fuel testing, reassessment of onboard fuel management and supply chain transparency.”

“As the regulatory landscapes evolve and alternative fuels gain traction, ship operators must remain proactive in assessing fuel quality to ensure compliance and maintain high operational efficiency.”

Note: The latest FOBAS Fuel Quality Report can be found here. 

Photo credit: Hans Reniers on Unsplash
Published: 28 February, 2025