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Argus Media: Fujairah bunker suppliers mull return to HSFO

Some traders think returning suppliers may struggle to compete on price, while others note medium-term regional politics could lead to changes, it said.

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Elshan Aliyev of the global energy and commodity price reporting agency Argus Media on Thursday (10 December) published an analysis on the market forces driving some bunker fuel suppliers to consider returning to selling HSFO despite the numerous preparations made previously to supply LSFO:

Some marine fuel suppliers in the Middle East’s major bunkering and storage centre of Fujairah, the UAE, are considering a return to selling high-sulphur fuel oil (HSFO) as bunker fuel.

The majority of Fujairah suppliers abandoned the grade last year, ahead of International Maritime Organisation (IMO) sulphur restrictions that came into effect in January. They put a ceiling of 0.5pc sulphur in marine fuels, although vessels fitted with exhaust-gas removal systems known as scrubbers can continue to burn HSFO.

Most of Fujairah’s bunker sellers converted their barges to exclusively store and deliver IMO-compliant very low-sulphur fuel oil (VLSFO). Only two suppliers at the port, Akron and Lotus, have been selling only high-sulphur marine fuel with 3.5pc sulphur content this year, and two others, Mediterranean Eastern Enterprise (MEE) and Al Arabian Bunkering (ABC) offered three grades — HSFO, VLSFO and low-sulphur marine gasoil (LSMGO). The rest focused exclusively on selling IMO-compliant fuels, rarely renting HSFO-delivering barges from others.

But rising HSFO uptake by shipping firms in recent months has prompted others to reconsider their positions.

Fujairah does not publish official statistics, but the amount of HSFO fuels involved in deals reported to Argus have risen in successive months to 40,700t in November from 33,600t in October, 29,360t in September, and 23,220t in August. Deals for 15,000t of HSFO were submitted by bunker market participants for assessment in the 1-9 December period, 35pc of the total. For comparison, HSFO made up only 18pc of submitted deals in October and 20pc in November.

Argus receives deals from suppliers, traders and buyers on a daily basis, which indicate a snapshot of general market trends.

 “Two big suppliers could be returning to HSFO next year,” a senior bunker manager said. “HSFO sales have been steadily rising in the past months and November was a good month. We received enquiries for 45,000t of HSFO on spot basis but probably as much is sold on term contract basis.” 

A rise in the number of scrubber-equipped vessels, particularly among dry-bulk carriers, is behind this firming HSFO demand. Shipping association Bimco said that 47pc of all newbuild dry bulk carriers delivered this year were fitted with scrubbers.

Some traders think the returning suppliers may struggle to compete on price, while others note that the medium-term regional political situation could lead to changes. If the new US administration lifts or eases sanctions on Iran this could lead to extra supply becoming available later next year. Before the reimposition of the US-led sanctions in 2018, Iran was a major supplier of marine fuels to Fujairah suppliers, accounting for 60-70pc of HSFO sold from the port.

US president-elect Joe Biden has said he will lift sanctions on Iran and rejoin the nuclear deal, otherwise known as the Joint Comprehensive Plan of Action (JCPOA), on the condition that Tehran complies with all of the required restrictions on its nuclear program.


Photo credit and source:
Argus Media
Published: 11 December, 2020

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Alternative Fuels

J-ENG completes land-based testing of hydrogen-fuelled marine engine

Engine will be installed on a 17,500 DWT multipurpose vessel to be built by Onomichi Dockyard for MOL and MOL Drybulk, with onboard demonstration testing scheduled to begin in April 2028.

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Japan Engine Corporation (J-ENG) on Friday (18 September) said it has completed land-based testing of the world’s first hydrogen-fuelled engine for large commercial vessels, the 6UEC35LSGH.

During factory testing, the engine achieved a hydrogen co-firing rate of at least 95%, reducing GHG emissions by more than 95% compared with conventional heavy-fuel-oil engines.

By adopting a high-pressure direct injection system, which injects fuel directly into the cylinder at high pressure, J-ENG said the engine achieves stable hydrogen combustion. 

Safety measures were also implemented, including a robust structure to prevent hydrogen leakage and double-walled piping for hydrogen supply lines. 

“Approval testing was conducted in the presence of ClassNK and was completed successfully,” the company said. 

The engine will be installed on a 17,500 DWT multipurpose vessel to be built by Onomichi Dockyard for Mitsui O.S.K. Lines and MOL Drybulk.

Hydrogen fuel will be supplied to the engine through a marine hydrogen fuel system, consisting of marine hydrogen fuel tanks and a fuel supply system, developed and manufactured by Kawasaki Heavy Industries.

In addition, Nippon Kaiji Kyokai (ClassNK) will conduct safety assessments throughout each stage of the engine’s development and the vessel’s design, construction and operation.

The vessel will then undergo sea trials before onboard demonstration testing begins in April 2028. 

Kawasaki will also develop and manufacture bunkering equipment for supplying liquefied hydrogen to vessels. 

“The demonstration will further evaluate the engine’s durability and performance under actual operating conditions,” J-ENG added.

 

Photo credit: J-ENG
Published: 22 September, 2026

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Business

Trafigura launches Volare Shipping with six VLCCs, eight newbuilds on order

Volare Shipping has announced a contemplated Private Placement to raise approximately USD500 million, with a proposed listing on Euronext Growth Oslo under the ticker “VLCC”.

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Trafigura launches Volare Shipping with six VLCCs, eight newbuilds on order

Trafigura on Monday (21 September) announced it has established a new, dedicated group company, Volare Shipping Ltd, to own, operate and scale a modern fleet of oil tankers. 

Volare Shipping’s fleet, initially comprised of six Very Large Crude Carriers (VLCCs) on the water and eight newbuild vessels on order, will be commercially managed by Trafigura’s global shipping business.

In connection with the company’s launch, Volare Shipping has disclosed a contemplated Private Placement to raise approximately USD 500 million and a subsequent proposed listing of the company’s shares on Euronext Growth Oslo. Following the proposed listing, Trafigura will be the majority-owner of Volare Shipping.

Subject to, among other things, Euronext Oslo Børs’ approval of the company’s listing application, and a successful completion of the Private Placement, the company’s shares are expected to commence trading on Euronext Growth Oslo on or about 5 October 2026, under the ticker “VLCC”.

Trafigura currently manages approximately 500 vessels across multiple segments, including around 250 oil tankers.

Volare Shipping currently operates six VLCCs and has eight newbuild vessels on order, delivering progressively between 2026 and 2028.

Andrea Olivi, Global Head of Shipping at Trafigura and Chair of the Board of Directors of Volare Shipping, said: “Trafigura’s growing footprint in the VLCC segment has revealed a clear opportunity to invest further in modern tonnage, alongside outside investors. Long-term fundamentals in crude oil transportation remain supportive, and a dedicated, listed company gives Volare Shipping investors direct exposure to the sector. 

“Oslo is home to one of the world’s leading stock exchanges for shipping companies. Access to this market will provide Volare Shipping with a strong platform for growth, and we look forward to scaling this new platform alongside other shareholders.”

Alexandre Duff, Chief Executive Officer of Volare Shipping, said: “Volare Shipping combines one of the youngest and most technically-advanced VLCC fleets in the market with access to Trafigura’s global trading, chartering and analytics platform. 

“Once the remaining newbuild vessels are delivered, we will own 14 modern VLCCs. The contemplated private placement will fully fund our current newbuilding programme, while our proven operational expertise positions Volare Shipping to deliver attractive long-term value for all shareholders.”

The newbuild vessels are larger than standard tankers and can carry greater cargo volumes. They are also fitted with additional internal tank coating and heating systems, enabling them to transport a wider range of cargo types. All vessels comply with international environmental and regulatory standards and have ammonia-ready dual-fuel capability.

 

Photo credit: Trafigura
Published: 22 September, 2026

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FuelEU

GTT Marine partners with BetterSea on FuelEU trading, pooling integration

Integration will enable GTT Marine customers and platform users to execute FuelEU trading and pooling end-to-end, directly from the Vesper Insights platform.

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GTT Marine partners BetterSea to integrate FuelEU trading, pooling into Vesper Insights

BetterSea, provider of a FuelEU compliance platform and marketplace, and GTT Marine, a business unit of the GTT Group, on Monday (21 September) announced a white-label integration partnership to accelerate FuelEU Maritime compliance for shipping companies.

Under the partnership, GTT Marine will integrate BetterSea’s platform into its own Vesper Insights platform offering, enabling GTT Marine customers and platform users to execute FuelEU trading and pooling end-to-end, directly from the Vesper Insights platform. 

Through this white-label integration, customers will gain access to BetterSea’s full FuelEU infrastructure, including marketplace access, simulation tools, pooling and post-trade workflows, as well as streamlined Thetis reporting capabilities, all within the Vesper Insights environment. 

This creates a uniquely aligned offering for customers seeking a single, trusted route to FuelEU compliance and execution.

As FuelEU Maritime moves into operational reality, shipping companies need more than visibility into compliance exposure. They need the ability to assess options, execute transactions, and complete workflows reliably and at scale. 

The BetterSea-GTT Marine partnership addresses that need by combining BetterSea’s execution-ready FuelEU platform with GTT Marine’s strong position in vessel performance and maritime innovation.

Through the BetterSea-GTT Marine partnership, customers will gain:

  • access to FuelEU trading and pooling execution directly within GTT Marine Vesper Insights platform
  • access to BetterSea’s FuelEU marketplace
  • simulation tools to compare compliance pathways across different regulations and evaluate cost exposure
  • pooling and post-trade workflows supported by standardized legal and financial structures
  • pool tracking and Thetis reporting capabilities to support the full FuelEU execution process
  • fully streamlined and connected route to end-to-end FuelEU compliance

Maximilian Schroer, Co-CEO, BetterSea, said: “This partnership with GTT Marine marks an important step in our mission to make FuelEU compliance and pooling easier to access and execute, while underlining BetterSea’s position as the market leading FuelEU marketplace. 

“By embedding our platform into GTT Marine Vesper Insights offering, we are giving customers a seamless and efficient path from compliance understanding to full trading and pooling execution, all within an environment they already know and use.”

Christian Treu, VP Revenue, GTT Marine, said: “At GTT Marine, we are committed to equipping our customers with practical and high-value solutions for the decarbonisation transition. 

“Through this partnership with BetterSea, we can offer our users direct access to a complete FuelEU execution framework, from simulation to trading, pooling, and reporting, directly via our platform.” 

 

Photo credit: GTT Marine
Published: 22 September, 2026

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