Europe & Africa Fuel Availability Outlook

Northwest Europe

HSFO availability remains very tight for prompt delivery dates in Rotterdam and in the wider ARA hub. Availability of the high-sulphur grade has tightened because of loading delays and congestion at oil terminals. Some barges have been waiting for nearly 10 days to load the product, a trader claims.

Lead times of 5-7 days are generally recommended for full coverage from suppliers.

VLSFO and LSMGO availability is relatively better in the ARA hub. Lead times of 4-6 days are recommended for VLSFO, and 2-4 days for LSMGO, a source says. One trader says VLSFO supply crunch has eased a bit in the ARA hub.

Rotterdam sold a total of 2.17 million mt of conventional bunker fuels in the third quarter of this year, down from 2.38 million mt sold in the previous quarter. The port’s conventional bunker fuel sales dropped for the third consecutive quarter and were at their lowest level since the second quarter of 2020.

On the other hand, Rotterdam’s LNG bunker sales surged by 15% in the third quarter. LNG bunker sales touched 204,000 cbm (83,000 mt) in the third quarter of this year, up from 180,000 cbm (73,000 mt) sold in the previous quarter. LNG sales increased for the third consecutive quarter, and recorded their highest sales level since the third quarter of 2021.

Bio-blended sales in the port fell from 186,000 mt in the second quarter of this year, to 183,000 mt in the third quarter. About 78% of biofuel blends sold in the third quarter were bio-VLSFO, followed by bio-HSFO (9%), bio-MGO (8%), bio-ULSFO (4%) and bio-MDO (1%).

About 250 mt of methanol was sold in the third quarter in Rotterdam.

Prompt VLSFO and LSMGO availability is tight in the Dutch port of Flushing. One supplier is fully booked for the remaining days of this month, and can supply both grades from 6 November onwards. Another supplier has held back offers because of tight barge availability, while one supplier can supply for prompt dates.

All three grades remain in good availability in the German port of Hamburg. Lead times of up to five days are recommended there. HSFO supply has improved there, a source says.

VLSFO and LSMGO availability remains normal for delivery off Skaw, a source says. Recommended lead times for both grades are around 7-10 days. Unlike Hamburg, availability of HSFO is tight off Skaw.

Mediterranean

HSFO availability has improved in Gibraltar over the past two weeks. Lead times of 4-6 days are recommended for full coverage from suppliers. Some suppliers can even supply the high-sulphur grade, with a shorter lead time of two days, a source says. VLSFO and LSMGO availability is normal in Gibraltar.

With a stable supply of HSFO, the port’s Hi5 spread has widened significantly in recent weeks. Gibraltar’s Hi5 spread was pegged at $67/mt on Wednesday, up from $18/mt at the beginning of this month.

Prompt VLSFO and LSMGO availability is a bit tight in Algeciras. One supplier is unable to offer the grades for prompt dates because it is fully booked for the remaining days of this month.

Congestion was reported at the inner anchorage in Algeciras on Wednesday. Two suppliers experienced delays of 2-4 hours there, and one supplier was 24-32 hours behind schedule on Wednesday, according to port agent MH Bland.

Bunker operations were progressing normally in Ceuta on Wednesday. Seven vessels were due to arrive for bunkers throughout the day, according to shipping agent Jose Salama & Co.

In the nearby port of Las Palmas, VLSFO availability has been good. Lead times of up to five days are recommended for the grade.

Other bunker delivery locations in the Mediterranean such as off Malta, Piraeus and Istanbul have tight availability of VLSFO and LSMGO.

Africa

Offshore bunkering in Algoa Bay has remained suspended for over a month now. The deliveries came to a standstill after the South African Revenue Service (SARS) detained bunker barges over import duty disputes in September. Some buyers have stemmed bunkers for deliveries in early November, a port agent told ENGINE.

Talks between bunker suppliers and authorities to resolve Algoa Bay offshore bunkering have reached an advanced stage. However, there is no clarity on how soon bunkering could resume in the bay, two port agents said.

Meanwhile, bunker supply is available in Port Elizabeth, and other South African ports including Cape Town, Ngqura and Durban, one of the port agents said.

VLSFO and LSMGO availability is normal in Durban. Lead times of up to seven days are recommended in the port. LSMGO grade is almost out of stock in Richards Bay, a source says.

HSFO and LSMGO availability is normal in Mozambique’s Nacala port, a source says. VLSFO supply is very tight in the port. On the other hand, LSMGO availability is normal in Maputo, but barge availability has tightened there. VLSFO is tight in Maputo, where a supplier can offer the earliest delivery on 9 November.
Source: ENGINE, By Nithin Chandran, https://engine.online/news