EMEA News
INTERVIEW: Burando Energies Sees HSFO Reaching 40% of Rotterdam Bunker Sales in 2025
The continuing additions of scrubber-equipped tonnage to the global fleet could see HSFO reaching as much as 40% of bunker sales at Rotterdam by the end of this year, according to marine fuel supplier Burando Energies.
Burando is preparing for increased HSFO sales at the Northwest European hub, Felix Vertommen, the firm's general manager, said in an interview with Ship & Bunker.
"We predict that HSFO will capture nearly 40% of Rotterdam's fossil bunker fuel market by the end of 2025, up from around 34% in 2024," Vertommen said.
"This growth is driven by the increasing number of vessels equipped with scrubbers, allowing them to take advantage of the cost differential between HSFO and more expensive VLSFO."
The global scrubber-equipped fleet is currently made up of 6,032 vessels, according to data from classification society DNV. This number has increased from 3,140 in 2019.
HSFO had been the dominant bunker fuel grade until the IMO 2020 transition five years ago, when VLSFO became the majority of the shipping industry's choice for compliance with the then-new 0.50% global sulfur cap on marine fuels.
But HSFO demand has been creeping up again since then as more ships take on scrubbers to allow them to burn cheaper HSFO while remaining in compliance with the sulfur cap. At Rotterdam, HSFO went from a low of 25.1% of marine fuel sales in Q2 2020 to as high as 37.4% in Q3 2024.
HSFO overtook VLSFO as the largest grade sold at Rotterdam by volume in the first quarter of last year, and has remained in top position since then. HSFO's position is unlikely to be challenged for the remainder of this decade, Vertommen said.
"HSFO is poised to remain the largest fuel grade sold at Rotterdam for the rest of the 2020s," he said.
"The combination of its cost-effectiveness for scrubber-equipped vessels and the slow adoption of more expensive alternative fuels ensures that HSFO will maintain its dominance.
"Additionally, geopolitical factors and shifting trade routes further strengthen the demand for this fuel type, making it a reliable choice for the foreseeable future.
"Burando Energies is strategically positioned to support this market trend while providing tailored solutions to optimize fuel choices for our clients."
Burando's marine fuels fleet, operated by Burando Barging, comprises barges with up to 10,000 mt in capacity. The firm has fully equipped its fleet with mass flow meters in recent years, well ahead of the deadline for the measurement systems to become mandatory for marine fuel deliveries in Rotterdam and Antwerp next year.
"The most MFMs got fitted over the last year; some have already had it for two or three years, and some a few months," Vertommen said.
"We decided to invest in this already before the regulation was known, as we want to be a leading an innovative marine fuel supplier in ARA.
"We're committed to setting the bar high and leading the way in providing transparent and efficient bunker operations."
About Jack Jordan
Jack Jordan is the Managing Editor of Ship & Bunker, the world’s most read marine fuel-focused publication.
He is an experienced financial editor and reporter with a first-class degree in Arabic and Russian, a postgraduate diploma in newspaper journalism and several years' history of covering the oil and shipping industries and capital markets.
Jack is based in London, UK.
About Ship & Bunker
Ship & Bunker is the world's most read publication focused on the marine fuel markets. Completely independent, it is the leading industry authority providing comprehensive daily news, exclusive in-depth features and analysis, along with daily & historical bunker price indications.
To contact the editor responsible for this story email us at editor@shipandbunker.com
