Americas Fuel Availability Outlook 5 Nov

Fog season begins on US Gulf Coast

Bunker demand high in New York

HSFO availability tight in Panama

IMAGE: Port of Vancouver. Getty Images

North America

Bunker demand has been steady in Houston, a trader said. HSFO and LSMGO availability is normal, while a few suppliers have seen tight spots in VLSFO deliveries. Recommended lead times for HSFO and LSMGO are 5-7 days, and VLSFO can be supplied with around seven days’ notice.

The US Gulf Coast has entered its sea fog season, and dense fog could cause delays and disruptions at the port, the trader said.

Earlier this week, the US Coast Guard warned that patchy fog could cut visibility on the lower Houston Ship Channel and Galveston Bay, mostly in the early mornings.

Mobile Bay faces the highest sea fog risk in the region this week, with a high threat on Thursday and Friday that could cut visibility to 1 nautical mile or less. Brownsville and Corpus Christi are also expected to face a high threat on Sunday.

Tampa, Pascagoula and Freeport, Texas, are expecting a moderate threat, mostly today and tomorrow. The risk is low at Galveston, Port Arthur, Lake Charles, Marsh Island, Port Fourchon, New Orleans and Venice.

At the Galveston Offshore Lightering Area (GOLA) prompt availability is a bit tight, a source said. All three grades can be delivered with 5-7 days’ notice.

Bunker deliveries at GOLA are made on a first-come, first-served basis and depend on the weather. High wind gusts of up to 23 knots and waves of up to 1.1 metres are forecast there on Saturday.

Despite bunker demand remaining high in New York, availability of all three conventional fuel grades is good, with no severe tight spots reported. Recommended lead times for VLSFO and LSMGO are 2-4 days, and HSFO can be delivered with around five days’ notice.

Distillate supply, which includes LSMGO, is expected to tighten at the port towards the end of the year and stay short until early next year, the source said.

No weather disruption is expected in New York this week, with only light rain forecast on Thursday and Friday.

Bunker demand has been strong at the ports of Los Angeles and Long Beach, a trader said. Demand has held up even though HSFO, VLSFO and LSMGO are mostly priced at a premium to Houston and New York.

Los Angeles has been the most expensive of the three ports for VLSFO and HSFO in every month this year, and the gap has widened.

Its VLSFO averaged $294/mt more than Houston’s in October, up from $72/mt more in January. Its HSFO premium over Houston grew from $62/mt to $304/mt over the same period.

VLSFO and HSFO availability is normal at Los Angeles, with recommended lead times of 5-8 days, the trader said. LSMGO can be delivered in less than five days.

Last week, a feasibility study by the two ports found that annual methanol bunker demand at Los Angeles and Long Beach could reach 64,000-250,000 mt by 2030. The ports plan to invite proposals for alternative fuel bunker demonstrations by the end of this year.

At Canada's Vancouver, bunker demand is steady, a source said. All three grades are available with lead times of 4-8 days.

Latin America and the Caribbean

Availability of VLSFO and LSMGO is good in Panama's Balboa and Cristobal, with recommended lead times of 3-5 days.

However, HSFO is tight at the ports, and has typically needed lead times of over a week and up to 10 days, a source said. A few suppliers may be able to deliver sooner, depending on the enquiry.

A new bunker supplier is expected to enter the Panama market next month, which should increase competition and give buyers more supply options at the ports, the source said.

Thunderstorms could disrupt bunker deliveries at Balboa until Saturday. Deliveries there run on a first-come, first-served basis, and vessels with a confirmed transit schedule get priority.

High wind gusts and thunderstorms could also disrupt deliveries at St. Eustatius on Friday and Saturday, with gusts of up to 22 knots forecast. Deliveries there are made at anchorage, where barges could face delays, and cruise ships get priority.

Buyers looking for HSFO in the Colombian ports of Cartagena, Santa Marta and Barranquilla still need to consult suppliers first, as the grade is tight, a trader said.

VLSFO and LSMGO have good availability, with the earliest delivery dates 3-4 days out.

Singapore-based bunker supplier TFG Marine will offer bunker fuels at several Venezuelan ports, with local supplier Impordiesel handling physical deliveries.

Only a handful of suppliers offer HSFO in Peru’s Callao, where the grade is tight and stems need prior consultation with suppliers, a trader said.

VLSFO and LSMGO are in normal supply, with recommended lead times of 4-7 days depending on stem size.

VLSFO and LSMGO availability is normal in Brazil’s Santos, where recommended lead times are 4-7 days, a trader tells ENGINE.

Rio de Janeiro can supply all three grades, but HSFO is tight and buyers need to check with suppliers before ordering. VLSFO and LSMGO are in normal supply there, with lead times of 3-5 days.

Paranagua, Belem and Vila do Conde have good VLSFO and LSMGO availability, with recommended lead times of under five days.

Rio Grande has no LSMGO supply this week. VLSFO is available but tight for prompt delivery.

Bunker availability remains tight at Argentina’s Zona Comun anchorage, where VLSFO and LSMGO both need lead times of over a week and up to 10 days, a source said.

High wind gusts could disrupt bunker deliveries in Zona Comun on Saturday, with gusts of around 30 knots forecast. Deliveries are most likely to be suspended when winds exceed 20 knots near the anchorage location.

By Gautamee Hazarika

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