Rotterdam’s sales have fallen sharply this year. Image Credit: Ship & Bunker / Data Credit: Port of Rotterdam
The Port of Rotterdam, the world’s second-largest bunker port after Singapore, has reported its lowest quarterly marine fuels sales total in at least 16 years.
Total conventional and biofuel bunker sales sank to 1.58 million mt in the first quarter, according to the latest data from the Port of Rotterdam, down by 28.1% on the year and by 27.2% from the previous three months. The total was the lowest since at least the start of 2010, the earliest point for which Ship & Bunker has data.
Explaining the Drop
“These developments can partly be explained by the implementation of RED III in the Netherlands, which has led to higher prices compared to neighbouring countries,” the port authority said in a statement on its website.
“Operational changes in regulation and policy may also have played a role.
“In addition, price volatility and uncertainty may have resulted in lower bunker demand in Rotterdam.”
The Netherlands has implemented the EU’s Renewable Energy Directive III since the start of January, requiring fuel suppliers to reduce the GHG emissions of their fuel pool by at least 2.9% by the blending in of marine biodiesel blends derived from Annex IX-A feedstocks, and this has prompted suppliers to add the cost of compliance with this regulation to their prices.
VLSFO delivered at Rotterdam came at a $14/mt premium to Antwerp’s prices in Q1, according to Ship & Bunker prices, while in the previous three months the two ports had the same price on average.
Antwerp has yet to publish bunker sales data for Q1, but its figures are likely to show a significant rise as it benefited from Rotterdam’s losses. Hamburg is also likely to have taken some volumes away from Rotterdam.
The mandatory use of mass flow meters for bunker deliveries at Rotterdam and Antwerp-Bruges also came into force on January 1. Because these measurement systems are more accurate than methods previously used, and some suppliers were widely assumed to be delivering less than the amount paid for previously, this development may have taken a small amount off the official bunker volumes recorded.
Product Breakdown
VLSFO sales at Rotterdam sank by 44.3% on the year to 439,804 mt in Q1. HSFO declined by 25.4% to 619,010 mt, ULSFO fell by 13.3% to 162,142 mt, MGO dropped by 19.3% to 273,696 mt and MDO declined by 11.4% to 86,821 mt.
Biofuel blend sales gained 0.6% on the year to 104,630 mt.
Separately, LNG bunker sales climbed by 2.4% on the year to 267,494 m3 in Q1. Some 15,260 m3 of bio-LNG sales were also recorded, a record quarterly total for this grade.
Ship & Bunker News Team
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