ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Northwest Europe

Overall bunker demand in Rotterdam and in the wider ARA hub has been slow so far this week, a trader says.

Prompt HSFO supply remains tight in the ARA. Several suppliers have limited product availability and recommend lead times of at least 5-7 days. VLSFO and LSMGO availability is said to be normal in the bunker hub. A lead time of 5-7 days is recommended for VLSFO, and 2-4 days for LSMGO.

The ARA’s independently fuel oil stocks averaged 2% higher on the month in July, according to Insights Global data. On the other hand, the region’s gasoil inventories – which include diesel and heating oil – averaged 10% lower in July.

VLSFO and LSMGO availability remains normal for delivery off Skaw, while HSFO is relatively tighter, a source says. Recommended lead times for all grades remain unchanged at 7-10 days.

Bunker fuel availability is normal in the German port of Hamburg, with lead times of five days advised.

Mediterranean

Port operations, including bunkering, remains suspended in Gibraltar after an oil spill incident was reported in the bay on Tuesday. According to Gibraltar Port Authority, the oil spill incident was reported at 8.22 local time (6.22 GMT) on Tuesday in the southern part of the Western anchorage, when a vessel taking bunkers saw its tanks overflow.

The amount of oil that seeped into the water is still unquantified, it said. The port authority has initiated a contingency plan to clean up the oil spill. Bunkering was completely halted at the port’s Western anchorage on Wednesday, port agent MH Bland told ENGINE. It is unclear when the port authority will allow bunkering to resume at the anchorage, it added.

The oil spill is said to be minor and is likely to be cleared soon, another source told ENGINE. However, if Gibraltar’s closure is extended further, or leads to heavy congestion, then ships seeking bunkers there may be diverted to alternative locations such as Algeciras and Ceuta, a trader says.

The suspension has triggered congestion in Gibraltar, with 12 vessels awaiting bunkers on Wednesday, up from nine on Tuesday, MH Bland said. Meanwhile, bunkering continues to run smoothly in the nearby ports of Algeciras and Ceuta. VLSFO and LSMGO availability is said to be good in both ports.

In Ceuta, VLSFO and LSMGO availability is said to be good, with one supplier able to deliver stems for very prompt dates (0-2 days), a source says. A cargo with about 36,000 mt of VLSFO was discharged in the port on Tuesday, and the entire volume went to the same supplier, according to a social media post from the Port of Ceuta.

VLSFO availability is also good in Las Palmas, where at least two suppliers are able to supply the grade for prompt delivery dates (0-2 days). HSFO availability is relatively tighter there. One supplier is running low on HSFO stocks and has no plans to replenish them soon, a source says.

Other bunker delivery areas in the Mediterranean, such as Lisbon, Sines, off Malta and Piraeus have good availability of VLSFO and LSMGO. Suppliers in most of these locations are able to deliver both grades on prompt delivery dates.

Africa

VLSFO and LSMGO availability is normal in the South African ports of Durban and Cape Town, and at the Algoa Bay anchorage by Port Elizabeth, where lead times of up to seven days are still recommended, a source says. LSMGO is almost out of stock in Richards Bay, the source adds.

Bunkering was on standby in Algoa Bay on Wednesday morning due to a bunker barge not being ready, according to Rennies Ships Agency.

VLSFO supply has improved in Mozambique’s Nacala this week, a source says. HSFO availability remains tight there, with delivery dates stretching to mid-August. Meanwhile, LSMGO availability is good there.

In Maputo, VLSFO and LSMGO availability is normal for prompt delivery dates.
Source: ENGINE, By Nithin Chandran, https://engine.online/news