· HSFO supply tight in several European ports
· VLSFO and LSMGO supply is normal in the ARA
· HSFO availability steady in Gibraltar
Northwest Europe
Prompt HSFO availability remains tight in the ARA hub and several other bunker ports across northwestern Europe. Some suppliers in Rotterdam can supply the grade on prompt delivery dates, but these stems come with hefty price premiums, a source says. The grade was offered in a wide range of $20/mt on Wednesday.
Lead times of 5-7 are recommended to ensure full coverage from suppliers in Rotterdam, slightly down from last week’s seven days.
While barge availability in the ARA hub has improved, product loading delays at oil terminals still persist, another source says. Tight availability of HSFO in Rotterdam has contributed to cap the port’s Hi5 at levels below $50/mt in recent weeks.
A drawdown in the ARA’s fuel oil stocks has added to the HSFO supply pressure in the bunkering hub. The region’s independently held fuel oil stocks have averaged 8% lower so far in August than across July, according to Insights Global data.
Meanwhile, VLSFO and LSMGO availability is normal in Rotterdam and in the wider ARA hub. A lead time of four days is recommended for VLSFO, and a shorter 2-4 days for LSMGO. 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. Barge availability is said to be normal there.
Availability of VLSFO and LSMGO is normal in the German port of Hamburg, a source says. As in the ARA and off Skaw, it can be difficult to secure HSFO for prompt delivery dates there.
Mediterranean
All grades remain in good availability across Gibraltar Strait ports. Lead times of 4-6 days are recommended for VLSFO and LSMGO in Gibraltar. However, some suppliers can still supply both grades for very prompt delivery dates (0-3 days), a source says.
While other European bunker ports have struggled with tight HSFO supply, supply of the grade has been relatively better in Gibraltar.
A lead time of 4-6 days is recommended to ensure full coverage from suppliers in Gibraltar, slightly down from the 5-6 days recommended last week. Steady supply of the grade contributed to keep the port’s HSFO benchmark at near parity levels to Rotterdam’s on Wednesday.
Minimum congestion was reported in Gibraltar, Algeciras and Ceuta on Wednesday, according to port agent MH Bland. One supplier in Gibraltar and three in Algeciras were behind schedule.
Meanwhile, securing HSFO for prompt delivery dates can be difficult in Italy’s Augusta and off Malta.
A logistical delay in transporting HSFO cargoes from a local refinery to Augusta has led to slight tightness in the port, a source says.
On the other hand, availability of the grade has been tight off Malta as the few suppliers that offer the grade are almost out of stock now, a source says.
Other bunker delivery areas in the Mediterranean such as Piraeus and Istanbul have good availability of VLSFO and LSMGO.
Africa
VLSFO and LSMGO availability is normal in the South African ports of Durban and Cape Town.
Bunkering was suspended by bad weather in Algoa Bay on Wednesday, according to Rennies Ships Agency. Two vessels were held up waiting to bunker at the anchorage.
Lead times of up to seven days are still recommended for deliveries across these three South African locations, a source says.
Source: By Nithin Chandran, ENGINE