Marine fuel buyers have raised concerns over bunker fuel quality in the Amsterdam-Rotterdam-Antwerp (ARA) hub. It comes after testing firm Veritas Petroleum Services (VPS) issued an alert on 10 May flagging elevated sediment levels in high-sulphur fuel oil (HSFO) deliveries in Rotterdam.
Several market participants in ARA said some producers may have been using lower-quality blending components in recent weeks. Some suggested shale oil may have been used in marine fuel production, which they said may have contributed to higher total sediment potential (TSP) in some finished product.
These assessments could not be independently confirmed. VPS has, however, identified elevated sediment levels in HSFO deliveries in Rotterdam, stating that between 6 April and 7 May it tested several cargoes with TSP measured at up to 0.90pc m/m. Higher sediment levels can increase sludge formation, reducing the efficiency of onboard fuel treatment systems.
The alert also said many samples exhibited "elevated density", which may complicate treatment for vessels fitted with conventional separators. There is no clear evidence that high TSP levels have been found in bunkers beyond Rotterdam.
While the ISO 8217 specification caps TSP at 0.10pc, traders said some deliveries in the region have exhibited significantly higher levels, raising the risk of off-specification cargoes.
The Port of Rotterdam Authority said it "does not have a role in the quality control or operational assurance of bunker fuels and will therefore not issue specific warnings to the market", adding that responsibility lies primarily with suppliers and buyers. It referred enforcement to the Netherlands' Human Environment and Transport Inspectorate (ILT). Argus has contacted ILT for comment.
The market could see an increase in claims from buyers over off-specification bunkers, one trader said, adding that affected volumes loaded on refuelling ships may need to be debunkered.
Participants said higher-quality components are being diverted away from ARA to blending tanks in ports on Saudi Arabia's west coast and in Africa, contributing to tighter availability in the region. Some suppliers are maintaining fuel quality by paying higher premiums for blendstocks, while others are opting for lower-quality alternatives, they said.
An analyst said this tightening is being reinforced by falling availability of mid-range sulphur fuel oil components in Europe, as refiners divert streams typically used in bunker blending into middle distillate feedstocks and process them through hydrocrackers. Distillate margins are elevated, supported by disruption to Mideast Gulf supplies, prompting European refiners to maximise diesel and jet output.
Tightening availability of suitable blending components in ARA is likely to persist in the near term, raising concerns over continued variability in fuel quality.
