ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Northwest Europe

Prompt bunker fuel availability has improved in Rotterdam since last week, a trader told ENGINE. All three grades are now readily available in the port, with recommended lead times of 3–5 days. This marks an improvement from last week, when prompt supply was tight, particularly for HSFO.

The ARA’s independently held fuel oil stocks averaged 9% lower in July than across June, according to Insights Global data.

The region imported 296,000 b/d of fuel oil in July, up from 235,000 b/d of fuel oil imported in June, according to data from cargo tracker Vortexa. The ARA imported low-sulphur fuel oil (LSFO) and HSFO in a 50/50 ratio in July, compared to June, when the ratio favoured LSFO at 65/35.

The ARA hub exported 224,000 b/d of fuel oil in July, up from 152,000 b/d of fuel oil exported in June. Fuel oil cargoes departed for the UAE and Algeria (14% each), Norway (11%), Spain (10%), the US (9%) and Egypt (8%).

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — decreased by 6% in July. The region imported 303,000 b/d of gasoil in July, down from 356,000 b/d imported in June, according to Vortexa data.

All grades remain in good supply for prompt deliveries in the German port of Hamburg. Lead times of 3–5 days are recommended for full coverage from suppliers.

Mediterranean

Availability across all grades has tightened in Gibraltar amid higher demand, a trader said. Lead times have gone up from 3–5 days in the past week to 4–6 days now. Minimal congestion was reported in Gibraltar on Wednesday.

In the Canary Islands’ port of Las Palmas, availability is normal across all three bunker grades, a trader said. Lead times of 3–5 days are advised for optimal coverage from suppliers.
Availability of HSFO has improved in the Greek port of Piraeus after one of the refineries boosted supply of the grade, sources said. One of the two HSFO-producing refineries in Greece ran out of product supply due to lower production in the past two weeks, a trader told ENGINE.

Despite production improving in the Greek refinery, securing prompt delivery of HSFO can be difficult in Piraeus due to limited barge availability, another trader said. Lead times of 5–7 days are generally recommended for HSFO for optimal coverage from suppliers in Piraeus.

Piraeus has ample availability of VLSFO and LSMGO grades, with lead times of 3–4 days advised. Piraeus is forecast to experience adverse weather conditions on Friday and Saturday, which could complicate bunker deliveries there.

Off Malta, HSFO has shown tightness in supply, and lead times of 5–7 days are advised for the grade, a rader said. VLSFO and LSMGO supply is relatively better, with lead times of 3–4 days advised for both grades. Bunkering disruptions may occur on Thursday due to rough weather conditions forecast in the area.

Prompt HSFO supply is also tight in Turkey’s Istanbul port, with recommended lead times of 5–7 days advised for the grade. In contrast, VLSFO and LSMGO availability is good, with prompt delivery dates available. Most suppliers can offer both grades within 3–4 days.

Bunkering may be hampered in Istanbul due to bad weather forecast intermittently between Wednesday and Saturday.

Africa

VLSFO is tight for prompt supply in the South African ports of Durban and Richards Bay, with traders recommending lead times of 7–10 days. Securing prompt LSMGO continues to be a challenge in Durban due to its tight availability. Lead times of up to two weeks are advised for the grade.

Wind gusts of up to 29 knots are forecast to hit Durban on Thursday and may hamper bunkering in the port.

Algoa Bay’s offshore bunkering suspension has entered its eleventh month in August. The South Africa Revenue Service (SARS) enforced the suspension in September last year after it detained bunker barges due to import duty disputes.

In April, SARS requested a second round of public feedback on proposed amendments to bunkering rules. However, the government agency did not give any indication about when bunkering would resume off Algoa Bay.

Bunker supply has been limited to in-port deliveries in Port Elizabeth, where only Africa Bunkering & Shipping (ABS) offers bunkers by truck in port. Repair works are being carried out at a tanker berth in Port Elizabeth since 7 June, said Unathi Sonti, executive chairperson of South Africa’s Maritime Business Chamber (MBC). Two sources told ENGINE that the repair work has not impacted bunkering.

Meanwhile, Mauritius’ Port Louis is experiencing tightness in bunker supply, a trader said. Lead times of over three weeks are advised for all three grades in the port.
Source: ENGINE, By Manjula Nair, https://engine.online/news