Panama's bunker sales take a hit as ship arrivals decrease

Fewer vessels arriving for bunkers contributed to drag Panama's total bunker sales down by 4% in January.

Panama bunker sales since January 2020

Changes in Panama bunker fuel sales from December to January:

• Total sales down 15,000 mt to 378,000 mt
• VLSFO sales down 18,000 mt to 248,000 mt
• HSFO sales up 500 mt to 89,000 mt
• LSMGO sales down 700 mt to 33,000 mt
• 0.50% MGO sales up 4,000 mt to 8,000 mt

The number of ships bunkering in Panama’s ports dropped by 14 to 496 in January – the lowest since November 2020. The average stem size was roughly 761 mt in January, down from 769 mt in December, according to preliminary figures from the Panama Maritime Authority.

VLSFO sales dropped by 7% on the month – the lowest since February, last year.

Bunker-only calls in January decreased by 28%, or 194, compared to a year earlier in January. An average of 595 vessels arrived for bunkers in 2023, down from 629 vessels in 2022. This decline can be attributed to a decrease in vessel transits through the Panama Canal, caused by low water levels in Gatun Lake, which is an important part of the canal.

The daily transits were reduced to just 24 in January by the Panama Canal Authority, which is significantly lower than the typical average of 35-36.

The Panama Canal has placed restrictions on the number of vessel transits due to the El Nino drought. This has led some operators to seek alternative routes, such as the Strait of Magellan or Cape Horn. Companies like Maersk are now using rail transport to move cargo across the 80 km distance between the Atlantic and Pacific coasts of Panama.

If restrictions remain, almost 4,000 crossings through the Panama Canal could be lost, according to a recent McKinsey report.

Bunker fuel availability was good in Panamanian ports last month. VLSFO and LSMGO lead times were usually around 3-5 days, while HSFO could be secured with a lead time of seven days, a source says. 

By Debarati Bhattacharjee

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