Americas Fuel Availability Outlook 15 Oct

Bunker delays expected in GOLA

Steady bunker demand in Los Angeles

Supply tight in Rio de Janeiro and Zona Comun

IMAGE: Boats moored along the harbour at Balboa Island in Newport Beach, California. Getty Images

North America

Bunker demand has been strong in Houston on the US Gulf Coast, and prompt availability of all three grades is tight.

A few suppliers have run out of HSFO and VLSFO and are thus unable to offer stems. Other suppliers recommend lead times of 6-8 days for both grades, a trader said. LSMGO can be supplied with lead times of 4-5 days.

Rough weather has delayed bunker operations at the Galveston Offshore Lightering Area (GOLA) over the past week. High wind gusts and rough seas could disrupt operations at the anchorage from 16-18 October.

Wind gusts could reach 42 knots on Friday night and early Saturday, with waves of up to 2.4 metres forecast on Saturday. This is expected to delay bunker deliveries further, a trader said.

Deliveries are currently made on a first-come, first-served basis, subject to weather.

Sea fog could also slow bunker deliveries in the US Gulf early on Friday. The risk of fog off Galveston is high from midnight until midday on Friday, with visibility forecast to drop to two nautical miles in the early hours.

In New Orleans, strong wind gusts could disrupt bunker operations from late on 16 October until 18 October, with gusts of up to 31 knots forecast early on Saturday, a source said.

On the East Coast, demand in New York is steady. VLSFO and LSMGO availability is okay, with most suppliers recommending lead times of 5-7 days.

HSFO is slightly tighter and needs at least a week’s notice, a source tells ENGINE.

Strong wind gusts could disrupt bunker deliveries in New York from 16-17 October, with wind gusts of up to 27 knots forecast on Saturday. Suppliers may need to keep a tug on standby to support bunker barges in the high winds, a trader said.

In Los Angeles and Long Beach, the bunker market has been steady and good weather at both ports has been conducive for bunker operations.

LSMGO availability is okay, with lead times of 4-5 days. VLSFO and HSFO availability is tight and is expected to tighten further. Lead times currently stretch to a week, a source said.

In Vancouver, Canada, availability of all three conventional grades is good. HSFO and LSMGO have typically been delivered within 4-5 days over the past week.

VLSFO is also available and needs at least five days of lead time, a trader said.

Latin America and the Caribbean

The bunker market in Panama is strong, and no weather disruptions are expected at Balboa and Cristobal. VLSFO and LSMGO availability is normal at both the ports, with recommended lead times of 3-6 days.

HSFO needs slightly longer, with typical lead times of 4-7 days, a source said.

No weather disruptions are expected at Freeport in the Bahamas, St. Eustatius or off Trinidad, with wind gusts below 20 knots forecast through Saturday.

Cruise ships take priority for bunker deliveries at Freeport and St. Eustatius, where vessels are supplied at anchorage. Off Trinidad, deliveries are made while vessels are underway.

In Colombia, availability of all three conventional grades is normal in Cartagena, Santa Marta and Barranquilla, with recommended lead times of 5-8 days, a source said.

VLSFO availability is okay in Callao, with recommended lead times of 5-8 days. LSMGO is tight at the port, with lead times of over a week, and HSFO is tight and available only under prior consultation, a source said.

VLSFO and MGO avails are okay across Chilean ports, with recommended lead times of 5-8 days. HSFO is not available in Chile.

In Brazil, VLSFO and LSMGO availability are tight in Rio de Janeiro and both grades are available only under prior consultation, a trader said. HSFO is also available at the port under prior consultation.

VLSFO and LSMGO availability at Santos is normal, with recommended lead times of 5-8 days.

The earliest delivery date for VLSFO and LSMGO in Paranagua is 18 October, and supply is tight after that. In Rio Grande, the earliest delivery date for both grades is 20 October.

In Argentina’s Zona Comun, VLSFO and LSMGO are tight and available only under prior consultation, a source said. Deliveries are made on a first-come, first-served basis, subject to weather.

No weather disruptions are expected at the port this week, with gusts of up to 18 knots forecast on Friday.

By Gautamee Hazarika

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