HSFO demand supports Rotterdam 1Q bunker sales
Total sales of fossil bunker fuels and marine biodiesel blends at the port of Rotterdam were 2.45mn t in the first quarter this year, up by 13pc compared with the final three months of 2023 but 9pc lower year on year, according to official port data.
Sales firmed across the board quarter on quarter, even though market participants had described spot bunker fuel demand in the region as "mostly limited" and shipping demand as lacklustre.
High-sulphur fuel oil (HSFO) sales rose the most. Disruption in the Red Sea resulted in many vessels re-routing around the southern tip of Africa, increasing the incentive of bunkering with HSFO as opposed to very low-sulphur fuel oil (VLSFO) and marine gasoil (MGO), according to market participants.
The longer journeys meant that vessels on the route increased their fuel consumption to reduce delivery delays, supporting conventional bunker fuel sales at Rotterdam. Higher prices for HSFO in Singapore also helped support HSFO demand in Rotterdam.
Marine biodiesel sales at Rotterdam increased by 13pc on the quarter and by 76pc on the year in January-March, despite the Dutch government's decision to half the Dutch renewable tickets (HBE-G)multiplier for shipping at the turn of the year. The move has led to a substantial increase in prices for advanced fatty acid methyl ester (Fame) 0 blends in the Amsterdam-Rotterdam-Antwerp (ARA) hub.
The inclusion of shipping in the EU's Emissions Trading System (ETS) from January may have lent support to demand for biofuel blends. Marine biodiesel made up 11pc of total bunker fuel sales at Rotterdam in the first quarter, the same share as the previous quarter, which was a record high.
LNG bunker sales at Rotterdam in January-March soared by 45pc on the quarter and by 150pc on the year.
| Rotterdam bunker sales | t | ||||
| Fuel | 1Q24 | 4Q23 | 1Q23 | q-o-q% | y-o-y% |
| VLSFO & ULSFO | 857,579 | 847,862 | 1,205,288 | 1 | -29 |
| HSFO | 818,028 | 643,218 | 809,871 | 27 | 1 |
| MGO/MDO | 383,409 | 361,585 | 468,373 | 6 | -18 |
| Biofuel blends | 262,634 | 233,108 | 149,206 | 13 | 76 |
| Total | 2,453,610 | 2,177,078 | 2,685,515 | 13 | -9 |
| LNG (m³) | 131,960 | 91,305 | 52,777 | 45 | 150 |
| Port of Rotterdam | |||||
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