By Dan Colover

Bunkers are sold at ports globally, but there are key bunkering hubs, which tally with global oil trading centres. In Europe, it’s Rotterdam, in Asia it’s Singapore and in the Middle East it’s Fujairah.

Various types of bunker fuel used by ships are fuel oil, middle distillate-based, such as gasoil or diesel, and are typically sold depending on their sulphur content and viscosity.

The sulphur content of the bunker fuel used by a ship depends on whether the vessel has an exhaust scrubber, which removes the sulphur emissions, or if it does not. Since the start of 2020 a new global sulphur cap means that vessels can only burn fuel with a maximum sulphur content of 0.5 percent if they do not have a scrubber.

Bunker fuel is typically sold to ships on a delivered basis, which involves a smaller bunker barge coming alongside the receiving vessel to discharge the fuel into its bunker tanks.

Sales categories

Bunker sales data at Fujairah is split into six categories: 380 CST low sulphur fuel oil sales and 180 CST low sulphur fuel oil sales, both of which are IMO 2020 compliant fuels. 380 CST marine fuel oil sales, which is fuel for vessels with scrubbers. There are two marine gasoil sales categories – low sulphur marine gasoil and marine gasoil – and there is also a category for lubricant sales. Bunker sales reporting for the Port of Fujairah started in March 2021, with data for January to June of this year now available.

The most popular bunker fuel sold in Fujairah is 380 CST low sulphur marine fuel oil, which accounts for over three-quarters of bunker fuel sold at the port with 517,248 cubic metres of the fuel sold on average each month between January and June of this year. The second most popular fuel at the port is 380 CST marine fuel oil, which accounts for less than a fifth as sales average 112,390 m3 over the same time period. Total bunker sales at the port averaged 662,631 m3 through the first half of this year.

Quick switch to low sulphur fuels

Data below shows that the switch to lower sulphur fuels has been swiftly made as the industry has adjusted to the new sulphur regulations. However, as more scrubbers are installed in ships in the coming years, there could be an increase in 380 CST marine fuel oil sales as a percentage of total sales.

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Since the start of 2017, the Port of Fujairah, supported by S&P Global Platts, has been reporting stock levels of refined oil products held in tanks on a weekly basis across three stock categories: light distillates, middle distillates, and heavy residues. 

The weekly stock data gives a dynamic update of storage activity at the port, with total stocks having averaged 21,640 million barrels through the year up to the week of July 19. Fuel oil is the most popular stored fuel at the port, making up 52 percent of total stocks so far this year. Last year, total stocks at the port hit a record high when the 30-million-barrel mark was breached for a number of weeks in June.

In March of this year, the port launched monthly vessel fuel sales reports, bringing new transparency to the sales data at the world’s third largest oil trading hub. The monthly bunker sales data and stock reporting can be accessed for free at: https://fujairah.platts.com/

(The author is Middle East Structured Market Engagement Manager, S&P Global Platts)

(Any opinions expressed in this article are the author’s own) 

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© ZAWYA 2021