Northwest Europe
Securing prompt HSFO and VLSFO stems can be difficult in Rotterdam and the wider ARA hub, two sources said. A trader recommends lead times of 5–7 days for HSFO and 4–6 days for VLSFO. LSMGO availability is relatively better, and the grade can be secured with a shorter lead time of 3-5 days, down from 4-6 days seen last week.
The ARA’s independently held fuel oil stocks have averaged 8% lower so far in July than across June, according to Insights Global data.
The region has imported 272,000 b/d of fuel oil so far this month, up from 235,000 b/d of fuel oil imported in June, according to data from cargo tracker Vortexa.
The UK has retained its position as the ARA’s top fuel oil import source, accounting for 16% of the region’s total imports this month. Mexico has been the second major fuel oil import source, accounting for 14% of the total imports. Other import sources include Denmark (13%), Lithuania (9%) and Germany (8%).
The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have decreased by 5% so far this month. The region has imported 312,000 b/d of gasoil so far this month, down from 356,000 b/d imported in June, according to Vortexa data.
In Germany’s Hamburg, prompt availability continues to be good across all three grades, a trader told ENGINE. Lead times of 3–5 days are recommended for all three grades.
Mediterranean
All three bunker grades are good for prompt availability in Gibraltar. Lead times of 3-5 days are recommended for all three grades, unchanged from last week, a trader said.
Bunker operations were proceeding smoothly in Gibraltar on Wednesday. But wind gusts of up to 21 knots are forecast for Friday, which could impact bunkering in the port.
Meanwhile, dredging operations, which caused intermittent delays in bunkering in nearby Ceuta over the past few weeks, have now ended, shipping agent Jose Salama & Co. told ENGINE. The dredging work was aimed at increasing vessel draft limits in certain areas of the port and resulted in bunkering delays for a supplier. Bunker fuel availability is said to be normal in Ceuta.
In the Canary Islands’ port of Las Palmas, prompt availability is good across all three bunker grades. Lead times of 3–5 days are recommended for optimal coverage from suppliers. Rough weather is forecast in the port area starting Saturday and may trigger bunkering disruptions in the area intermittently till Wednesday next week.
Bunker demand remains low in other Mediterranean ports like Piraeus, Malta Offshore and Istanbul, a trader told ENGINE.
HSFO is out of stock in the Greek port of Piraeus, a trader told ENGINE. One of the refineries is running low on HSFO, which has triggered the tightness in the grade. Supply of the high-sulphur grade is likely to improve in the coming week, the trader added. VLSFO and LSMGO availability is normal in the port, with suppliers offering prompt supply. Both grades require lead times of 3–4 days.
Adverse weather is forecast in Piraeus on Wednesday and Thursday, which may hamper bunkering, a source said.
Turkey’s Istanbul port has good availability of VLSFO and LSMGO, with lead times of 3-4 days still recommended in the port. But HSFO has tightened, causing lead times to stretch from last week’s 3–4 days to 5–7 days now. Istanbul is likely to face bunkering disruptions between Wednesday and Friday due to bad weather conditions, a source said.
Availability is normal for VLSFO and LSMGO off Malta, with consistent lead times of 3–4 days. HSFO availability is running tight, with only one supplier offering the grade off Malta, a trader said. As a result, lead times have stretched from last week’s 3–4 days to 5-7 days. Rough weather conditions on Friday and over the weekend may impact bunkering in the area.
Africa
LSMGO remains tight for prompt supply in the South African ports of Durban and Richards Bay. Lead times of up to two weeks are recommended for LSMGO in Durban, sources said.
VLSFO supply in Durban and Richards Bay is relatively better, with lead times of 7–10 days recommended to secure the grade in both locations.
Algoa Bay’s offshore bunkering suspension is set to enter its eleventh month in August. The South African Revenue Service (SARS) enforced the suspension after it detained bunker barges due to import duty disputes in September last year.
Since then, only one supplier has been offering in-port deliveries by trucks in nearby Port Elizabeth.
Source: ENGINE, By Manjula Nair, https://engine.online/news