Americas Fuel Availability Outlook 12 Nov

HSFO to tighten in Houston

VLSFO very tight in New York

VLSFO and HSFO tight in Panama

IMAGE: Cranes and containers at the pier of the Port of Cartagena, Colombia. Getty Images

North America

Houston has seen good bunker demand this week. VLSFO and LSMGO availability has been a bit tight, with suppliers recommending lead times of 6-8 days.

HSFO availability is tight and is expected to tighten further over the next few weeks. Lead times for the grade stand at around 7-10 days, a trader said.

The US Gulf Coast has entered its sea fog season, which runs from November to March. The Atlantic hurricane season ends on 30 November.

Freeport, Texas, faces the highest risk of sea fog this week. A high threat has been forecast for Thursday morning, with visibility expected to drop to 1 nautical mile or less. A moderate threat is also forecast at intervals from Saturday afternoon to early Monday.

Galveston, Corpus Christi, Brownsville, Port Arthur, Lake Charles, Port Fourchon, Venice and Mobile Bay face a moderate fog threat this week. Fog risk is low at Marsh Island, New Orleans, Pascagoula and Tampa.

At the Galveston Offshore Lightering Area (GOLA), all three grades require lead times of 5-8 days, a source said.

Strong winds and rough seas could disrupt deliveries there from Saturday to Monday. Winds of up to 23 knots and gusts of up to 30 knots are forecast for Sunday. Deliveries could face prolonged delays from Saturday morning.

Bunker demand in New York has steadied after two strong weeks, a source said. Only LSMGO is available at the port for prompt delivery, with lead times of 2-3 days. HSFO availability is okay, with suppliers recommending 5-7 days of lead time.

VLSFO cargo arrivals in New York Harbor have been slow. Availability of the grade is very tight this week, with recommended lead times of over a week to 10 days, a trader said.

High wind gusts of up to 20 knots could disrupt bunker deliveries in New York from Thursday until Saturday evening. Suppliers may need to keep a tug on standby during periods of stronger winds.

Los Angeles and Long Beach have continued to see strong bunker demand on the US West Coast. Bunker availability at both ports is okay.

Suppliers are recommending lead times of 5-7 days for HSFO and LSMGO, while VLSFO may require longer notice, a source said.

The Port of Long Beach has reported that its emissions per container fell to an all-time low last year, even as its terminals handled a record nearly 9.9 million twenty-foot equivalent units (TEU).

According to its annual emissions inventory, ships at berth increased their combined use of shore power and of barges that capture vessel exhaust by 11%. Shore power lets ships plug into the grid instead of running their engines.

Vessels equipped with Tier III engines accounted for 21% of port calls. These engines meet the IMO’s strictest limits on smog-forming nitrogen oxides (NOx).

In Canada, bunker demand in Vancouver has held steady. Suppliers can deliver VLSFO, HSFO and LSMGO with lead times of 4-8 days, a source said.

Latin America and the Caribbean

Most suppliers in Panama’s Balboa and Cristobal are short on VLSFO and HSFO stocks this week. Availability is expected to stay tight until next weekend, with lead times of 8-12 days recommended for both grades, a source said.

LSMGO availability is better at the ports, with lead times of 3-5 days.

No weather-related disruptions are expected in Balboa. Ships with confirmed canal transits receive priority there.

Weather is also not expected to disrupt bunkering at Freeport in the Bahamas, St. Eustatius or Trinidad this week.

Cruise ships receive priority for bunkers at Freeport. At St. Eustatius, deliveries take place at anchorage, where cruise ships also receive priority.

Last week, US floating LNG infrastructure company Excelerate Energy agreed to supply LNG for 11 years to AxDo Bahamas. AxDo is a new LNG and bunker joint venture between Axpo and Domicisle LNG.

Excelerate plans to build an LNG storage and distribution hub near Grand Bahama. The facility will supply fuel to ships, including cruise vessels, with first deliveries expected next year.

HSFO availability is tight in Colombia’s Cartagena, Santa Marta and Barranquilla, and the grade is available only after consulting suppliers, a trader said.

VLSFO and LSMGO are readily available at the ports, with deliveries possible within 3-4 days.

In Peru’s Callao, only a few suppliers offer HSFO, and availability is tight. Buyers need to confirm stems with suppliers in advance, a trader said.

VLSFO and LSMGO supply is regular, with lead times of 4-7 days.

In Brazil, Santos has normal VLSFO and LSMGO availability. Suppliers are recommending lead times of 4-7 days, a trader said.

Rio de Janeiro suppliers offer all three grades. VLSFO and LSMGO are available with 3-5 days’ notice, while HSFO is tight and subject to prior consultation.

VLSFO and LSMGO have normal availability at Paranagua, Belem and Vila do Conde. Deliveries can be arranged in less than five days.

Rio Grande has no LSMGO supply this week, and prompt VLSFO availability is also tight. The earliest delivery date for the grade is around 18-20 November, a trader said.

Earlier this week, German-Brazilian startup Atlanteo said it is in talks with shipping companies and bunker suppliers in Europe and Brazil over potential e-methanol purchases.

The company plans to build a pilot plant in Brazil’s Espírito Santo region. The facility will use renewable electricity and carbon dioxide sourced from agricultural waste to produce e-methanol.

Prompt supply is limited at Argentina’s Zona Comun anchorage. VLSFO and LSMGO availability is tight, with most suppliers needing over a week to 10 days of lead time, a source said.

High wind gusts of up to 23 knots could disrupt deliveries there from Thursday to Sunday. Suppliers suspend operations when wind speeds exceed 20 knots.

By Gautamee Hazarika

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