HSFO availability improves in the ARA

Prompt VLSFO supply tight in Las Palmas

VLSFO supply tight in Mozambique

PHOTO: Cargo being loaded on a container ship in Istanbul. Getty Images

Northwest Europe

HSFO supply has improved in the ARA hub from last week, according to a trader. Lead times have reduced from 5-7 days earlier this week to 4-6 days now. VLSFO and LSMGO lead times remain unchanged from last week. Lead times of 4-5 days are advised for VLSFO and 2-4 days for LSMGO. 

The ARA’s independently held fuel oil stocks averaged 5% lower in the first week of April, compared to March, according to Insights Global data. The region's fuel oil stocks declined coming into this month, but inventories grew to their highest monthly average levels since April 2021.

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — increased by 3% coming into this month. The inventories rose to their highest levels since June last year.

Availability across all bunker fuel grades is good in the German port of Hamburg, with prompt delivery dates available. Lead times of 3-5 days are recommended for all fuel grades. 

HSFO supply remains tight off Skaw, with traders recommending lead times of 7-10 days for the high-sulphur grade. LSMGO and VLSFO grades are available for comparatively shorter lead times of 5-7 days.

Mediterranean

Availability across all bunker fuel grades is normal in Gibraltar. Conducive weather conditions have helped suppliers to clear bunker backlogs this week. Recommended lead times have also come down to 4-6 days from up to 7 days last week. Strong wind gusts of up to 30 knots are forecast in Gibraltar this week, which could complicate bunker deliveries there.

Bunker fuel supply is also good in the nearby Ceuta port, according to a source. Bunkering operations are running normally there amid calm weather. 

Availability of HSFO and LSMGO grades in the Canary Islands’ port of Las Palmas is normal. Securing prompt delivery of VLSFO can be difficult in Las Palmas, where suppliers are offering the earliest delivery dates from 20 April. Strong swells are forecast to hit the port on Wednesday, which could disrupt bunkering.

Bunker demand has been consistently low over the past two weeks in the Mediterranean ports of Piraeus, Malta and Istanbul. The demand has not picked up this week as well, according to a trader.  

Availability of all fuel grades remains normal in the Greek port of Piraeus, with suppliers offering prompt deliveries. The port is forecast to experience calm weather this week, which would allow bunkering to progress smoothly.

All bunker fuel grades are available for prompt deliveries off Malta. No weather-induced bunkering disruptions are likely this week, a source said. 

Bunker fuel availability is also good in Turkey’s Istanbul, according to a trader. Suppliers are able to offer prompt delivery dates for all grades. Calm weather is forecast in the port for the rest of the week.

Africa

In Mozambique’s Nacala, VLSFO supply is tight amid strong demand. Availability of HSFO and LSMGO is good in the port, according to a source.

Supply of VLSFO and LSMGO is very tight in Maputo. LSMGO demand is said to be stable in the port, while VLSFO demand is currently very high, the source said.

Offshore bunkering has been suspended in Algoa Bay since September last year. The South African Revenue Service (SARS) suspended offshore bunkering after it detained bunker barges over import duty disputes. One supplier is currently offering in-port deliveries in Port Elizabeth, where bunkering is only available by truck.

By Manjula Nair

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