Northwest Europe and Mediterranean Fuel Supply Dynamics: A Closer Look
The fuel supply landscape in Northwest Europe and the Mediterranean has seen significant shifts in recent weeks,driven by weather disruptions,import trends,and inventory changes. Here’s a detailed breakdown of the latest developments.
Northwest Europe: Tight HSFO Supply and rising Imports
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The Amsterdam-Rotterdam-Antwerp (ARA) hub continues to face tight supply of high-sulphur fuel oil (HSFO), with traders recommending lead times of 5-7 days for full coverage. In contrast, availability of very low-sulphur fuel oil (VLSFO) and low-sulphur marine gasoil (LSMGO) remains relatively better, with lead times of 3-5 days.
According to Insights Global, independently held fuel oil stocks in the ARA hub have increased by 8% this month compared to December. this comes as the region imported 219,000 barrels per day (b/d) of fuel oil in January, up from 161,000 b/d in December, as per Vortexa data.
The United Kingdom has emerged as the largest fuel oil import source for the ARA hub, accounting for 20% of total imports. Other key contributors include Saudi Arabia (19%), Poland (14%), Germany (11%), and lithuania (10%).
Meanwhile, gasoil and diesel inventories in the ARA hub have averaged 16% higher this month, despite a decline in imports to 185,000 b/d from 238,000 b/d in December.
In Germany’s Hamburg port, supply of all fuel grades remains robust, with traders recommending lead times of 3-5 days.
Mediterranean: Weather Woes Disrupt Bunkering
The Mediterranean region has faced significant bunkering disruptions due to adverse weather conditions. In Gibraltar, bunkering resumed on Tuesday after being suspended on Monday due to rough weather.However, suppliers are struggling to clear the backlog of vessels, with lead times now stretched to 5-7 days for all grades.
Similarly, Huelva has experienced partial bunkering suspensions since Monday, with strong winds forecast to continue until Thursday. Wind gusts of up to 34 knots on Wednesday and 29 knots on Thursday have made bunker supply challenging.
In the Canary Islands’ port of Las Palmas, rough weather is expected to persist until 31 January, possibly triggering further bunker disruptions.Traders recommend lead times of 7-10 days for VLSFO, LSMGO, and HSFO grades.The Greek port of Piraeus is also experiencing slightly tight bunker supply, with the earliest delivery dates available from 3 February. Though, calm weather conditions this week are expected to facilitate smoother deliveries.Off Malta, bunker supply remains good, with suppliers able to offer prompt delivery dates. However, rough weather forecasts this week could hamper smooth operations.
Key Insights at a Glance
| Region | Key Developments | Lead Times |
|———————-|————————————————————————————-|————————-|
| ARA Hub | Tight HSFO supply; VLSFO and LSMGO availability better; fuel oil stocks up 8% | HSFO: 5-7 days |
| Hamburg | Good supply of all grades | 3-5 days |
| Gibraltar | Bunkering resumed; backlog due to rough weather | 5-7 days |
| Huelva | Partial bunkering suspensions; strong winds forecast | Suspended until Thursday|
| Las Palmas | Rough weather likely to continue until 31 January | 7-10 days |
| Piraeus | Slightly tight supply; calm weather expected | From 3 February |
| Malta | Good supply; rough weather could disrupt deliveries | Prompt |
Looking Ahead
As weather conditions continue to play a pivotal role in bunkering operations across the Mediterranean, stakeholders are advised to plan ahead to mitigate disruptions. In Northwest Europe, the focus remains on managing HSFO supply while leveraging improved availability of low-sulphur alternatives.
Stay tuned for further updates on fuel supply trends and their impact on regional shipping operations.Bunker fuel availability across Africa presents a mixed picture, with some regions experiencing tight supplies while others boast prompt deliveries. In the South African ports of Durban and Richards Bay, VLSFO supply remains constrained, with recommended lead times of 7-10 days, according to traders. Additionally, LSMGO stocks have once again run dry in Durban, a situation that briefly improved last week after a december shortage.
In contrast,Mauritius’ Port Louis reports robust availability of VLSFO,LSMGO,and HSFO,with suppliers offering immediate deliveries. This stark difference highlights the regional disparities in bunker fuel supply chains.
Simultaneously occurring, offshore bunker deliveries are set to resume off Algoa Bay after a prolonged hiatus. The first operation as the 2023 ban is scheduled for Wednesday, with British oil supplier BP securing the stem. The delivery will be facilitated by a barge owned by African Marine Solutions (AMSOL),though specifics on the quantity and fuel grade remain undisclosed.
The suspension of bunkering in Algoa Bay dates back to September 2023, when the South African Revenue Service (SARS) halted operations following the detention of five bunker barges over import duty disputes. During this period, vessels were redirected to alternative locations such as Durban, Richards Bay, and Walvis Bay.
SARS has also announced an industry-level workshop on Wednesday to discuss amendments to the Customs and Excise Act, signaling potential regulatory changes that could impact the bunkering sector.
Key Bunker Fuel Availability Across Africa
| Location | fuel Grade | Availability | lead time |
|———————|—————-|————————|———————|
| Durban | VLSFO | Tight | 7-10 days |
| Durban | LSMGO | Out of stock | N/A |
| Richards bay | VLSFO | Tight | 7-10 days |
| Port Louis | VLSFO, LSMGO, HSFO | Good | Prompt deliveries |
| Algoa Bay | Offshore bunkering | resuming Wednesday | N/A |
The resumption of operations in Algoa Bay marks a significant progress for the region’s maritime industry, while the ongoing supply challenges in durban and Richards Bay underscore the need for strategic solutions. For more updates on global bunker fuel trends, visit ENGINE.
Interview: Insights on Bunker Fuel Availability and Regional Trends
Editor: The recent report highlights varying bunker fuel availability across key regions.Can you elaborate on the situation in Northwest Europe and the Mediterranean?
Guest: Certainly. In Northwest Europe, the focus is on managing HSFO supply, which is currently tight, with lead times of 5-7 days in ports like Hamburg. However, there’s improved availability of low-sulphur alternatives, which is helping to offset some disruptions. Meanwhile, in the Mediterranean, weather conditions are significantly impacting bunkering operations. As an example, Gibraltar has resumed bunkering after rough weather caused a backlog, but delays of 5-7 days remain. Similarly, Huelva has suspended partial bunkering due to strong winds, and Las Palmas faces continued rough weather until the end of January, pushing lead times to 7-10 days.
Editor: How is the situation in African ports, particularly in South Africa?
Guest: The African bunker fuel market presents a mixed picture. In South Africa, ports like Durban and Richards Bay are experiencing tight VLSFO supplies, with lead times of 7-10 days. Additionally, LSMGO stocks in durban have run dry again, following a brief improvement after a December shortage. Contrastingly, Port Louis in Mauritius is thriving, with robust availability of VLSFO, LSMGO, and HSFO, and immediate deliveries being offered.
Editor: What’s the latest update on offshore bunkering in Algoa Bay?
Guest: Offshore bunkering in Algoa Bay is set to resume this Wednesday after a prolonged suspension as September 2023. The first delivery will be facilitated by BP through a barge owned by African Marine Solutions (AMSOL). This is a significant development for the region, as bunkering operations were halted due to import duty disputes involving the south African Revenue Service (SARS). During the suspension, vessels were redirected to alternative ports like Durban, Richards Bay, and Walvis Bay.
Editor: Are there any upcoming regulatory changes that could impact the bunkering sector?
Guest: Yes, SARS has announced an industry-level workshop scheduled for Wednesday to discuss amendments to the Customs and Excise Act. These potential regulatory changes could have significant implications for the bunkering sector, particularly in South Africa. Stakeholders are advised to stay informed as these discussions unfold.
Editor: What advice do you have for stakeholders given the current challenges?
Guest: Given the ongoing disruptions due to weather and supply constraints, stakeholders should plan ahead to mitigate delays.Leveraging alternative fuels and closely monitoring regional updates will be crucial. For instance, while HSFO remains tight in some areas, low-sulphur alternatives are more readily available and can help balance the supply-demand equation.
Conclusion
bunker fuel availability varies significantly across regions, with weather conditions and regulatory changes playing pivotal roles. while Northwest Europe and parts of the Mediterranean face delays, Port louis in Mauritius offers prompt deliveries. The resumption of offshore bunkering in Algoa Bay marks a positive step for South Africa, though challenges persist in Durban and Richards Bay. Staying informed and proactive will be key for stakeholders navigating these dynamics.