UK ports hit by jet fuel force majeure
Traders of jet fuel have called force majeure on deliveries to the UK on long range product tankers because of the cancellation of flights.
The UK is one of the largest hubs for jet fuel in Europe and deliveries through at least five ports in southern England and Wales will be affected as product is usually immediately piped to airports to supply aircraft.
One London shipbroker said the quick turnaround of product means product tankers will be unable to discharge cargoes at Avonmouth, Fawley, Thames terminals, Milford Haven and Immingham, so suppliers have called force majeure on deliveries.
?Tanks are full in airports and everything is stacking up. There is no where to put the jet fuel so it will have to remain in the tankers. Ships with jet fuel on board will have to sit there on demurrage or owners will renegotiate some sort of storage rate,? a London broker said.
Another broker said the impact on jet fuel deliveries will be temporary, adding: ?Once the ash cloud disappears, demand will catch up. But if it goes on for weeks, then we will see more floating storage of jet fuel.?
Brokers expect jet fuel deliveries to Le Harve, Copenhagen and ports in the Amsterdam-Rotterdam-Antwerp area will also be affected if flights from nearby airports also remain affected by the volcanic ash cloud.
Since all north European flights were banned, jet fuel consumption has dropped by 1m barrels per day, or about a fifth of global consumption and European stocks have risen by 5m barrels.