European Jet Fuel Imports to Drop to 1.1 Million Tons This Month

Shipments of jet fuel to Europe from Asia and the Middle East are set to drop in March after rising last month, according to reports from five shipbrokers including Delhi-based Interocean Shipping.

A total of 1.1 million metric tons will be shipped or provisionally booked to the region from India, South Korea and the Middle East, the shipbroker reports showed. That’s down from 1.3 million tons in February.

Europe’s air traffic is forecast to fall by 1.3 percent to 9.7 million flights this year amid slowing growth and rising fuel costs, the European Organization for the Safety of Air Navigation, or Eurocontrol, said in a Feb. 29 report. That would be a second annual drop, the Brussels-based group said.

Premiums (JETSNECC) for jet fuel cargoes on the continent averaged $68.56 a ton more than benchmark gasoil futures this month, up from $61.70 a ton in February, according to data compiled by Bloomberg.

“The weakness of the European economy and the fuel price have already had a major impact on the airlines, which have cut back on the number of flights harder and faster than we expected,” David Marsh, Eurocontrol’s head of forecast and traffic analysis, said in the report.

Jet fuel stockpiles in independent storage at Europe’s Amsterdam-Rotterdam-Antwerp oil hub declined 11 percent to 515,000 tons in the week to March 8, according to PJK International BV, a researcher in the Netherlands. That was the lowest in six weeks.

BP Plc sold a 30,000 ton cargo of the aviation fuel to Morgan Stanley on March 8 for delivery to the French port of Le Havre, according to a survey of traders and brokers monitoring the Platts pricing window. The cargo was partly priced at a premium of $69 to April gasoil in the ICE Futures Europe exchange in London, unchanged from a trade on March 7.

April gasoil, the benchmark for jet fuel, diesel and heating oil, dropped 0.4 percent to $1,029.75 a ton as of 8:49 a.m. today in London.

The following table lists a selection of oil tankers scheduled or provisionally chartered to Europe from the Middle East and India this month:

SHIP NAME           LOADING     VOLUME (tons)
Sovereign           March 7     65,000
Four Sky            March 9     90,000
Sea Frontier        March 10    40,000
Gulf Crystal        March 12    65,000
Elka Athina         March 15    90,000
Gan-Dignity         March 15    90,000
Northern Spirit     March 23    90,000
Botafogo            March 25    90,000
N. Mars             March 25    65,000

The following table lists the monthly volume of shipments to
Europe since March 2011 based on shipbroker reports and surveys
of traders and brokers:

MONTH     VOLUME (tons)
March     1.1 million
February  1.3 million
January   0.8 million

December  0.8 million
November  1.5 million
October   1.2 million
September 0.9 million
August    1.3 million
July      1.5 million
June      1.3 million
May       1.6 million
April     1.2 million
March     1.2 million

To contact the reporters on this story: Lananh Nguyen in London at; Rob Sheridan in London at

To contact the editor responsible for this story: Stephen Voss at

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