The latest report from Lloyd’s Register’s Fuel Oil Bunker Analysis and Advisory Service (FOBAS) highlights a sharp rise in the use of biofuels, driven largely by new greenhouse gas (GHG) emissions regulations from both the European Union and the International Maritime Organization (IMO).
Covering the second half of 2024, the report also raises concerns over several ongoing issues, including high sediment levels in fuels, sulfur content compliance, and inconsistencies in flash points.
One of the key trends noted is the increasing use of FAME-based biofuels, especially in ports such as Singapore, Algeciras, and across the ARA region (Antwerp, Rotterdam, Amsterdam). While many ships have successfully transitioned to these newer fuels, questions remain about the transparency of their composition and the potential risks of unknown or inconsistent quality entering the supply chain.
Sulfur content continues to be a major concern. According to the report, about 2.5% of the Very Low Sulfur Fuel Oil (VLSFO) samples tested showed sulfur concentrations between 0.50% and 0.53% by mass. Although technically within MARPOL Annex VI limits (when accounting for test accuracy margins), these results create uncertainty for ship operators. An additional 0.8% of samples exceeded the 0.53% sulfur threshold, placing vessels at risk of non-compliance.
The 2024 figures show a slight improvement compared to 2023, but the report urges suppliers to enforce tighter quality control to ensure fuels consistently meet the 0.50% sulfur cap and avoid compliance issues for users.
Sediment buildup in fuels remains a pressing issue. Reports of such problems increased in 2024 after a previous decline. The instability of asphaltenes in blended fuels is a common cause, with Houston and Antwerp identified as high-risk ports for sediment-related concerns.
Even distillate fuels—typically seen as higher quality—presented some issues, especially related to cold flow properties and compliance with the SOLAS-required minimum flash point of 60°C. There was a noticeable rise in Marine Gas Oil (MGO) samples falling below this flash point in 2024, raising both safety and regulatory concerns. This trend is partially attributed to the blending of marine fuels with automotive diesel, which has a lower flash point limit.
Looking ahead, the upcoming implementation of the Mediterranean Sulfur Emission Control Area (SECA) is expected to impact fuel sourcing and quality in certain ports. Ships operating in the Mediterranean will be required to use fuels with a sulfur content of 0.10% or less by mass, unless they are equipped with scrubbers. This regulatory shift could affect both fuel availability and pricing, making strategic planning crucial for ship operators.
Moreover, regulations like FuelEU Maritime, the inclusion of shipping in the EU Emissions Trading System (ETS), and other decarbonization initiatives are anticipated to accelerate the adoption of biofuels and alternative fuels. This will likely influence not only supply and pricing but also the regulatory compliance landscape and overall fuel quality.
The full FOBAS Fuel Quality Report can be downloaded at the following link.