LSFO bunker loading delays in Antwerp, Rotterdam cause tightness: traders
Time：2014-04-30
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"LSFO supply is tight, BP and Shell cannot perform, they don`t have fuel oil in their tanks," one Rotterdam source said.
The tightness caused ostensibly by barge loading logistics, according to sources, was heard to be temporary however. "Any delays are short term...there`s good availability of material longer term," said a trader Tuesday.
Premiums were heard higher Tuesday morning, with traders indicating 380 CST LSFO changing hands at $629/mt.
Delays loading bunker barges from Total`s terminal in Antwerp were attributed to cargo loadings taking priority over bunker barges, Antwerp sources said. This was heard to be having a knock-on effect at BP loading facilities in Rotterdam.
"BP`s loading programme moved backwards as they have been waiting currently at the Totsa [Antwerp] terminal since last week to load their 1% and there are more people waiting for Totsa to perform in Antwerp," said a trader.
However, another trader indicated the issue was one of barge -- rather than material -- availability. "It`s a bit hard to say, it seems BP sold their volumes in Antwerp...maybe it`s a barge availability issue," the source said.
Bunker suppliers have been waiting since Saturday morning to load, though an Antwerp trader said Totsa should restart loading bunker barges Tuesday afternoon. There were over 10 barges waiting to be loaded from Total`s terminal, the source said.
LSFO in the port of Antwerp is mainly supplied by Totsa, with E.ON and Gunvor terminals also offering volumes on a spot basis, sources said. Both E.ON and Gunvor were heard to have sufficient volumes in tank, but were offering at unattractively high premiums, an Antwerp source said.
Limited prompt availability for low sulfur bunker specification did not affect spot bunker fuel prices in Rotterdam Monday as other suppliers reported sufficient prompt availability. "There were lots of quotes...Nobody is showing no-quote on LSFO for us...We had a prompt inquiry and even that was offered competitively," a second Rotterdam trader said.