The latest analysis from Lloyd’s Register’s Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) highlights a significant increase in biofuel usage, primarily driven by EU and IMO regulations, including the Mediterranean SOx Emission Control Area (SECA) coming into effect in May 2025.
The FOBAS Fuel Quality Report H2 2024, which examines fuel quality trends from the second half of 2024, identifies ongoing concerns with high total sediment levels, sulphur compliance, and flash point irregularities.
The report indicates that biofuels are continuing their rise in the marine fuel mix, driven by regulatory incentives and industry decarbonisation commitments. FOBAS notes the increasing use of fatty acid methyl ester (FAME) residual blends (RF grade), particularly in Singapore, Algeciras, and the ARA region. While many vessels have successfully adopted biofuels without reported issues, concerns remain regarding transparency in composition and the potential risk of unknown quality biofuel stocks entering the supply chain.
Mirroring trends from the first half of 2024, the report identifies off-specification sulphur content results as a significant concern. Almost 2.5% of tested VLSFO samples, particularly ISO8217 RMG380 grade, recorded sulphur levels between 0.50% mass and 0.53% mass. Although these fuels technically comply with Marpol Annex VI regulations when accounting for test precision allowances, they continue to create uncertainty for ship operators.
A further 0.8% of VLSFO samples exceeded 0.53% mass, placing vessels at risk of non-compliance. The data shows some improvement from 2023, but suppliers are urged to aim for stricter adherence to the 0.50% limit to avoid compliance disputes.
Total sediment remains a major issue, with 2024 seeing a rise after previous improvements. Asphaltene instability in fuel blends is a common cause, with Houston and Antwerp identified as high-risk areas in this respect.
Distillate fuels, while generally of higher quality, presented some issues, particularly in cold flow properties and compliance with the SOLAS flash point requirement of minimum 60 deg C. The number of MGO samples with flash points below 60 deg C increased in 2024, a trend that pose both statutory compliance and safety risks. This can partly be attributed to unintentional or intentional mixing with automotive diesel, which has a lower flash point limit in some countries .
Looking ahead, the report anticipates that the Mediterranean SECA may alter bunkering patterns and fuel quality in specific ports. Ships operating in the Mediterranean will need to use fuels with a sulphur content of 0.10% mass or lower, unless using approved SOx abatement technology. This regulatory shift may drive changes in fuel availability and pricing across key Mediterranean ports, requiring careful planning by ship operators.
Additionally, FuelEU Maritime regulations, the inclusion of shipping in the EU Emissions Trading System (ETS) and other regulatory pressures are expected to drive increased adoption of biofuels and alternative fuels such as methanol, hydrogen, and ammonia – creating new challenges in terms of availability, cost, regulatory compliance, and fuel quality.
Usman Muhammad, FOBAS Product Manager, said: “Fuel quality continues to be a key operational concern for the maritime industry. While we see some improvements in certain areas, the recurrence of high sediment levels, sulphur compliance issues, and emerging challenges with biofuels underline the need for rigorous fuel testing, reassessment of onboard fuel management and supply chain transparency. As the regulatory landscapes evolve and alternative fuels gain traction, ship operators must remain proactive in assessing fuel quality to ensure compliance and maintain high operational efficiency.”
LR’s FOBAS service provides fuel testing, advisory, and risk mitigation strategies, supporting ship operators in navigating the complexities of fuel quality and regulatory compliance. The FOBAS Fuel Insight Programme is a bi-annual series of fuel quality reports, sharing the knowledge and experience of the FOBAS team, empowering the industry in making informed decisions to reduce risks and embrace sustainable shipping.
