Supply of all grades remains tight in the ARA ports, and prompt deliveries are difficult to find, particularly for LSMGO. Suppliers are offering LSMGO deliveries with a minimum lead time of five days, a source says. Similarly for VLSFO, some suppliers can offer their earliest delivery dates five days out, while HSFO380 requires longer lead time.
LSMGO supply has come under pressure in the ARA and several other European bunker locations as some bunker suppliers avoid Russian product amid mounting calls for the EU to sanction Russian oil.
Two major refineries undergoing maintenance in the ARA and attractive diesel refining margins is pulling middle distillates out of the marine gasoil pool and building pressure on LSMGO supply.
According to cargo tracker Vortexa, the last gasoil cargo imported from Russia arrived in the ARA on 5 April. But while this may be the case, these arrivals can be patchy and there is not yet any clear evidence of a major slowdown in Russian gasoil imports to the ARA for April as a whole. Russia is still the biggest import source.
In Hamburg, availability of LSMGO is slightly tighter compared to VLSFO. Recommended lead time are still around five days.
Availability is tight in Bremerhaven across all grades. A supplier is expecting VLSFO replenishment stock to arrive by next week from Finland, a source said.
The supply situation is tight in Gibraltar Strait ports, where suppliers require lead times of 5-6 days to commit to stems, a source says.
A supplier is waiting for LSMGO replenishment stock to arrive by 25 April in Ceuta, while in Gibraltar a supplier is fully committed for prompt deliveries, sources say.
The weather has been calmer in the Gibraltar Strait this week which, allowing bunker operations to run smoothly. But conditions are forecast to deteriorate from Friday and could possibly trigger a new suspension or delays until Saturday.
Congestion in Gibraltar was minimal on Wednesday, with five vessels waiting to bunker, and one vessel at Algeciras outer D anchorage, says port agent MH Bland.
Ceuta had two vessels waiting to bunker at anchorage, and another 10 vessels due throughout the day, according to shipping agent Jose Salama & Cia.
Bad weather has limited bunker operations to Area 4 out of Malta’s six offshore bunkering areas. Some suppliers are hesitant to offer prompt deliveries due to backlogs and can offer deliveries from 25 April, a source said.
Product availability in Malta is normal, but barge schedules are tight as suppliers clear previous backlogs, sources say.
Availability remains tight in Las Palmas across all grades. Strong winds have limited bunker operations to inner anchorage in Las Palmas, where only one vessel can be supplied at a time, and to ex-pipe supply at berth in Tenerife, says MH Bland.
Bunker fuel availability remains normal at Piraeus for VLSFO and LSMGO. Some suppliers are experiencing barge delays, sources say.
Bunker operations are now running smoothly in Durban after severe flood that hit late last week. Some deliveries were initially delayed in the port. South African logistics and port operator Transnet said the port is undergoing clean-up procedures which will run until end of this week.
Bunker fuel availability is said to be normal in Cape Town and Durban. A supplier can deliver VLSFO and LSMGO in Durban with around two days of lead time.
