Panama's bunker sales rose by 3% in December

Panama's total bunker sales increased in December despite fewer vessels arriving for bunkers.

Panama bunker sales since January 2020

Changes in Panama bunker fuel sales from November to December:

• Total sales up 10,000 mt to 392,000 mt
• HSFO sales up 12,000 mt to 88,000 mt
• VLSFO sales up 11,000 mt to 266,000 mt
• LSMGO sales down 9,000 mt to 34,000 mt
• 0.50% MGO sales down 3,000 mt to 4,000 mt

The number of ships bunkering in Panama’s ports dropped by 25 to 510 in December – the lowest since November 2020. The average stem size was roughly 769 mt in December, up from 713 mt in November, according to preliminary figures from the Panama Maritime Authority.

VLSFO sales grew by 4% on the month, while HSFO sales rose by 16%. However, combined MGO and LSMGO sales dropped by 25% on the month, recording their lowest sales level since September 2021.

One barge was added in Panama, bringing the total to 31 in December.

About 4.90 million mt of bunkers was sold in Panama in 2023, down from 5.23 million mt in 2022.

HSFO sales grew by a massive 14% on the year, touching 1.17 million mt in 2023. VLSFO sales fell by 3% on the year. Around 3.38 million mt of VLSFO was sold in 2023, down from 3.47 million mt in 2022.

VLSFO was the most sought-after product this year and accounted for 69% of total sales in Panama in 2023. HSFO sales represented 20% of the total and combined MGO and LSMGO sales at 11%.

Bunker sales in December declined by 18% compared to the same month a year ago. This decline can be attributed to a reduction in vessel transits through the Panama Canal, caused by low water levels in Gatun Lake, which is a significant part of the canal.

The daily transits were reduced to just 22 in December by the Panama Canal Authority, which is significantly lower than the typical average of 35-36.

Due to low water levels at the waterway, ships had to wait in a queue for several days or even weeks last month. These ships had the option to pay millions to avoid the long queue or choose to sail longer routes around South America, which subsequently increased their costs.

Bunker fuel availability has been good in the Panamanian ports. Lead times for VLSFO and LSMGO are currently around three days, while HSFO can also be secured with a lead time of 4-5 days.

By Debarati Bhattacharjee

Please get in touch with comments or additional info to news@engine.online