Ports of Rotterdam, Antwerp stand by mass flow meter mandate; Amsterdam abstains

The ports of Rotterdam and Antwerp remain committed to mandates for mass flow meters to measure bunker volumes by 2026, while nearby Amsterdam has refrained from its own interventions to clamp down on fuel quantity disputes.

In October 2023, the ports of Rotterdam and Antwerp announced plans to address fuel quantity disputes that have become prevalent across the Amsterdam-Rotterdam-Antwerp fuel hub, making mass flow meter measurement devices compulsory for bunker suppliers from Jan. 1, 2026.

A spokesperson from the Port of Antwerp-Bruges said April 29 "the issue of quantity being recognized by almost all involved parties," calling the measure a move "to maintain levels of trust in the ports."

Mass flow meters have been heralded as a more accurate measuring device than legacy practices involving basic readings overseen by quantity surveyors, yet are utilized by less than a quarter of bunker barges across Amsterdam, Rotterdam and Antwerp, Port of Rotterdam data showed in October 2023.

With the majority of suppliers relying on manual ullage and density readings, they have been exposed to fuel quantity disputes and shipowners are often left short-changed. Globally, over 3% of bunker volume is lost each year due to quantity shortages, which costs consumers $2.6 billion-$5.2 billion annually, according to bunker supplier Minerva.

Yet while the ports of Rotterdam and Antwerp have promoted the benefits of the devices for efficiency, a more laissez-faire approach from Amsterdam has stoked concerns around the efficacy of new measures.

An Amsterdam port spokesperson April 26 reiterated the authority's stance against mass flow meter mandates.

"We see this as a private matter, a matter for market parties," she said. "If there is a dispute, it should be resolved there."

Cost concerns

At a cost of Eur100,000-150,000 each, critics have argued that mass flow meter installation could unfairly disadvantage barge operators in Antwerp and Rotterdam.

When Singapore became the first bunker hub to mandate the devices in 2017, the port provided financial support to barge operators, limiting the costs passed on to end-users. Without equivalent aid from Rotterdam and Antwerp, prices could be forced higher and the ports could cede market share to Amsterdam, which has historically priced at parity, stakeholders have said.

Speaking at the World Energy Congress in Rotterdam April 23, Boudewijn Siemons, CEO of the Port of Rotterdam Authority, dismissed concerns that the devices could harm price competitiveness at the port.

"If you look at the value of what's being bunkered and then you take the Eur100,000 that they have to invest, you divide it for 15 years over the volume that a bunker barge will actually bunker out, it's pretty insignificant," Siemons said. "So I don't think it will affect the bunker price. I think it will stop a lot of discussions that have absolutely no added value."

He remained upbeat the port would retain its status as the world's second largest port after the implementation, pointing to Singapore's continued dominance and logistical advantages to Amsterdam.

"You don't go to Amsterdam only for bunkering," Siemons said. "And then you might as well pay a little bit more in Rotterdam if that would already be the case."

According to Platts assessments, prices for HSFO bunker fuel in Singapore averaged $327/mt in 2017, up from $233/mt in 2016 before mass flow meters were introduced, exceeding a 24% increase in average Dated Brent crude oil prices on the year by climbing 41%.

Demand remained resilient to the price increase, however, according to Trafigura subsidiary TFG Marine, which reported Jan. 9 that Singapore's bunker volumes reached record levels in 2017, the year mass flow meters were introduced.

The Port of Antwerp-Bruges spokesperson agreed that any price increase would be "marginal," noting the efficiency gains of bunkering with mass flow meters, a process that can shave two hours off fuel loading times.

"We believe the increased transparency and operational gains of an MFM will attract more customers to the port," she said.