Recent reports indicate increasing challenges in securing bunker fuel across Europe and Africa, with several regions experiencing tight supply. In Northwest Europe, specifically the Amsterdam-Rotterdam-Antwerp (ARA) hub, buyers are advised to expect lead times of 5-7 days for prompt bunker fuel supplies.
According to Vortexa data, early August saw the ARA hub importing a remarkable 457,000 barrels per day (b/d) of fuel oil, sharply rising from the previous monthly average of 159,000 b/d in July. This uptick corresponds with a 10% increase in independently held fuel oil stocks in August compared to July. The primary sources of these imports were Benin (35%), Venezuela (19%), and Colombia (17%).
Declining Gasoil Stocks
In the same region, independent gasoil inventories, which encompass diesel and heating oil, have decreased by 9% in the first week of August, marking a worrying trend as levels have fallen to their lowest point in more than four years. Notably, the ARA’s gasoil imports saw a significant rise, reaching 228,000 b/d this month compared to 119,000 b/d in June.
Delivery of gasoil has mainly come from the United States (23%), Sweden (21%), and France (10%). This situation emphasizes the pressing need for vessel operators to be prudent in fuel procurement, given the declining inventories and demand spikes.
Regional Supply Challenges
Despite tighter bunker situations in the ARA, Hamburg reported normal availability, where any fuel grade can be secured within five days. In contrast, both Denmark’s Skaw and Sweden’s Gothenburg present tighter conditions, with suppliers recommending lead times of 10 days for any fuel grade.
Further complicating the landscape, ports in the Gibraltar Strait are similarly tight, with lead times extending to 7-10 days. In the Mediterranean, specific challenges are evident in Barcelona and Las Palmas, where buyers need to order at least a week in advance. Additionally, Piraeus is under supply pressure, requiring lead times of 5-7 days for various fuel grades due to limited barge availability.
Across Africa, High Sulfur Fuel Oil (HSFO) availability remains restricted, with similar constraints for VLSFO and Low Sulfur Marine Gas Oil (LSMGO) in ports such as Lome and Walvis Bay. Notably, while Lagos anchorage and Luanda present their own challenges, Istanbul offers a reprieve with good availability for VLSFO and reduced lead times for LSMGO and ULSFO.
Behind the Headline
The narrowing availability of bunker fuel across various key ports is set to significantly impact shipping operations. For operators, this emphasizes the necessity of enhancing logistics planning through proactive fuel procurement strategies. The constricted supply chain, particularly in the face of rising demand, leads to higher operational costs and could affect the scheduling of voyages. As such, vessel operators must remain vigilant to navigate these dynamics, leveraging timely information to optimize supply chain efficiency.
