Americas Fuel Availability Outlook 27 Nov
Dense fog delays Houston barge movements
GOLA likely to suspend bunkering
Zona Comun bunker activity slows
IMAGE: Port of Santos with cargo ships and lift machines. Getty Images.
North America
Bunker fuel demand in Houston has weakened this week. While demand has recovered from October’s low, it remains historically soft, particularly for VLSFO.
On the supply side, availability is steady, with VLSFO and LSMGO requiring 3–5 days of lead time. HSFO is tighter and needs at least seven days.
Dense fog has persisted since late last night at the port of Houston, disrupting bunkering operations. Barge movements have been especially affected, causing minor delays, a source told ENGINE.
The US Gulf Coast has entered its fog season, therefore delays and intermittent channel closures are expected over the coming months.
In the Gulf, the Sabine Neches Waterway is set to close on 29 November from 11:00 to 17:00 local time to install a dredge pipeline near the Sabine station.
"Vessel movements will be restricted during this period and could lead to congestion," a ship agent said.
In Port Beaumont and the Galveston Offshore Lightering Area (GOLA), HSFO and LSMGO can be delivered in 3-4 days of lead time. VLSFO requires around 5 days to be delivered.
The shortest time within which delivery can be made in GOLA is 1-2 days.
GOLA is currently experiencing severe weather conditions, which are expected to persist until 2 December. Wind gusts are blowing above 25 knots and could reach up to 32 knots. Bunkering at the anchorage is likely to be suspended as a result.
In New York, sources say bunker demand is currently steady, with an expected uptick in the coming days. HSFO requires up to a week for delivery, while VLSFO and LSMGO can be supplied with 2–4 days of lead time.
The port is facing rough weather conditions too, with a gale warning in effect from Friday morning through the afternoon. Wind gusts of 30–35 knots are forecast, generating waves of over 3 feet. A small craft advisory also remains in effect through late tonight.
In Los Angeles, bunkering operations have returned to normal after a fire broke out on Friday aboard the container ship One Henry Hudson.
“Now that the fire is determined to be contained, there will be a waiting period to ensure no re-flashes or heat signatures are detected,” said US Coast Guard Capt. Stacey Crecy, Incident Commander.
All three fuel grades at the port have good availability with suppliers recommending lead times of 5–7 days.
At the twin ports of Los Angeles and Long Beach, a newly approved pact also aims to accelerate the development and deployment of zero-emission technology and infrastructure at both ports.
In Canada’s Vancouver, HSFO can be supplied by 4–5 December. VLSFO and LSMGO is also available, requiring 4–8 days of lead time depending on order size.
Latin America and the Caribbean
Demand in Panama has been muted this week, with fewer enquiries reported.
In Balboa and Cristobal, VLSFO and LSMGO can be delivered with lead times of 4–6 days. HSFO is available as well, though it requires a slightly longer lead time of 5–7 days.
In Colombia, VLSFO and LSMGO are available across Cartagena, Santa Marta, and Barranquilla, with the earliest delivery dates of 3–4 days.
In Santos, the port remains congested, leading to short delays in bunkering operations. VLSFO and LSMGO is available in good stock and can be delivered within 5-8 days of lead time.
Availability is okay across the ports of Rio de Janeiro, Rio Grande, Belem and Vila do Conde, where VLSFO and LSMGO can be delivered within recommended lead times of 4-5 days.
In Salvador and OPL Sepetiba, the earliest that both grades can be supplied is between 30 November-1 December.
Meanwhile, the port of Paranagua continues to report normal availability for VLSFO, which can be delivered in 4-5 days, but has no availability for LSMGO.
Lastly, Itaqui is seeing tight availability for both VLSFO and LSMGO and can only be supplied by 2 December.
Demand for bunker deliveries at Zona Comun have slowed in recent days. VLSFO and LSMGO can be supplied within lead times of 5–7 days.
A recent fire at a refinery in La Plata temporarily curtailed heavy fuel production, though output is now returning, according to a local market source.
Much of the heavy fuel produced there is typically delivered to Zona Comun by bunker tankers.
In the meantime, other producers in the region, including those at Campana and Dock Sud, continue to supply heavy fuel to various bunker delivery companies in the area, the source informed ENGINE.
These providers are still offering bunker services in Zona Comun as well as in the Bahia Blanca region.
By Gautamee Hazarika
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