Port of Fujairah: Transparency in the Making
By David Martinez
Senior Director, Commodity
Solutions Crude and Refined
S&P Global Platts
The Port of Fujairah enjoys many features that have helped it become one of the most important hubs for global trade and the oil industry. Features like the port’s closeness to the UAE’s crude production centres, the direct exit to the Arabian Sea and its impressive infrastructure, including VLCC-capable terminals and major storage facilities. Fujairah is now one of the world’s top three ports for bunkering with Singapore and Rotterdam. But enough has been said in this magazine over the years about the importance and relevance of the Port of Fujairah. The fact is indisputable.
Transparency is essential to understand market movements, trade flows and for the development of accurate balance outlooks. These are key ingredients of successful and liquid trading hubs, enabling traders and investors to identify and seek opportunities
In recognition of the port’s importance and to support its customers’ commercial operations, Fujairah’s leadership proactively sought to provide operational transparency. In 2017 it empowered the Fujairah Oil Industry Zone to partner with S&P Global Platts. Together, they made available for the first time the weekly inventory of fuel oil, residuals products, middle distillates and light ends stored in the port’s facilities. This data has been the perfect complement to the pricing data provided by S&P Global Platts, supporting the development of the markets for refined products in Fujairah and around the region.
The Port of Fujairah and the Fujairah Oil Industry Zone are now taking the next step in developing what could become a comprehensive transparency platform. Again in partnership with S&P Global Platts, they are making available to the market information about the sale of bunker fuels and lubricants at the port of Fujairah.
Bunkering may not enjoy the prestige or prominence of tanker shipping. But especially in current times, the importance of comprehensive and timely bunker sales statics can’t be overstated.
The global COVID-19 pandemic has greatly affected the supply, demand and flow of goods. But economic recovery is on the horizon, thanks in part to several vaccines being approved and administered globally. Bunker sales are a very good lead indicator or economic activity. Regional trends and differentials will help us understand how and where the world is restarting its engines.
Furthermore, it has been a year now since the implementation of the IMO2020 regulation to combat and control sulphur emissions from shipping. The industry has seen a clear and consistent shift towards low-sulfur bunker fuels, including some new products and specifications. And bunker sales statistics are vital to understanding how the industry is adapting and evolving.
About the New Port of Fujairah Statistics
There are currently about a dozen companies with a valid bunkering license operating at the Port of Fujairah, and the number has remained stable over the last few years. They report to the port’s authorities the total volume of bunker sales during the previous month by the tenth day each month. The port then compiles, validates and prepares the data for reporting. The Port of Fujairah and S&P Global Platts aim at making the data available to the market on the website fujairah.platts.com by or on the 20th of each month.
Bunker sales are broken down into six relevant categories: - 180cst low sulfur fuel oil - 380cst low sulfur fuel oil - 380cst marine fuel oi - Marine gasoil - Low sulfur marine gasoil - Lubricants
These categories paint a complete picture by covering both conventional and emerging products, such as low sulfur fuels. The volumes are reported in cubic meters and with high precision.
History for the six categories is starting in January 2021. It will grow over time and is available for visualization for registered users. Registration to the platform is free, automated, and only takes a few clicks.
Expert pricing analysts at S&P Global Platts have provided commentary about the inventory statistics since the inception of the transparency platform. In a few sentences, they summarize the latest figures in absolute and relative terms. They will also provide commentary about the bunker sales statistics, adding additional value to the raw figures.
And This is Only the Beginning
The parties involved in the Fujairah transparency project want to enable market participants to operate and invest in Fujairah with confidence. They have grand ambitions for this initiative in line with the ambitions of the port. Over the coming months, the Fujairah Oil Industry Zone, the Port of Fujairah and S&P Global Platts will continue working together to offer the market even more information and improve the user experience of visitors to fujairah.platts.com.
Scan on the QR code to find out more about the Platts Fujairah Statistics