Americas Fuel Availability Outlook 23 July

Tropical storm disrupts US Gulf bunkering

Panama demand dips

VLSFO and LSMGO tight in Paranagua and Rio Grande

IMAGE: Aerial view of a container terminal at Rio de Janeiro, Brazil. Getty Images

North America

In the port of Houston, bunker demand has ticked up over the past week, while availability of all three conventional fuel grades is normal, a trader tells ENGINE.

Recommended lead times for VLSFO and HSFO are at 5-6 days, and LSMGO is available from most suppliers with lead times of 3-4 days.

In the Galveston Offshore Lightering Area (GOLA), bunkering is currently underway on a first-come, first-served basis. Availability of VLSFO and LSMGO is okay, with both grades typically requiring lead times of 6-7 days over the past week.

HSFO availability is comparatively tighter, and longer lead times are expected at the anchorage, a source told ENGINE.

The Atlantic hurricane season is ongoing, and the National Hurricane Center has issued advisories for Tropical Storm Bertha.

The storm is expected to dominate weather conditions across the US Gulf through the end of the week, bringing strong to severe thunderstorms, gale-force gusts, sustained winds of up to 40 knots near the storm, and rough seas.

In the US Gulf, the passing of Bertha could cause bunker delays, a trader said.

"Mobile, Pascagoula, New Orleans, Lake Charles, Beaumont, Houston, Galveston, Freeport and GOLA are all possibly in the line of the storm," the trader added.

On the US East Coast, the port of New York is seeing steady bunker demand, with neither significant highs nor lows, a trader said.

Recommended lead times for HSFO and VLSFO are at 5-7 days. LSMGO can be delivered by most suppliers in less than five days. Weather conditions at the port are expected to remain calm, with winds of 5-10 knots and waves of 1-2 feet.

On the West Coast, the ports of Los Angeles and Long Beach have recorded strong bunker demand. Prompt availability of all three conventional fuel grades is tight.

Suppliers have recommended lead times of 7-8 days for HSFO, VLSFO and LSMGO.

This week, the Port of Long Beach and the US Maritime Administration (MARAD) announced they have partnered to study small modular reactors (SMRs) for commercial shipping and port operations, signalling growing interest in nuclear-powered shipping.

In Canada's Vancouver, bunker demand is steady. Availability is good at the port, with all three conventional fuel grades requiring lead times of 4-5 days.

Latin America and the Caribbean

In Panama, fuel demand has dipped this week. Balboa and Cristobal continue to see normal availability.

Suppliers recommend lead times of 3-5 days for VLSFO and LSMGO, while HSFO requires around seven days.

Drought conditions linked to El Niño have renewed concerns over water levels in the Panama Canal. Shipping agent Norton Lilly said the Panama Canal Authority will temporarily reduce vessel booking slots, which could increase congestion by the key trade route.

In Colombia, the ports of Cartagena, Santa Marta and Barranquilla have good availability of VLSFO and LSMGO, with the earliest delivery dates in 3-4 days, a trader said.

The Brazilian port of Santos is experiencing congestion, but bunker availability is okay this week. Lead times are 5-8 days, depending on the size of the enquiry and the fuel grade, a trader said.

At Rio de Janeiro, VLSFO availability is okay, and deliveries can be made within 4-5 days. LSMGO is available only with prior consultation.

For Belem and Vila do Conde, availability for both VLSFO and LSMGO is okay, and deliveries can be made within 4-5 days.

In Paranaguá, both VLSFO and LSMGO are tight this week. The earliest delivery date for both grades is between 1-2 August.

Availability of these two grades is very tight at Rio Grande. The earliest expected delivery date is 31 July, a trader said.

In Argentina, construction of the new crude oil terminal at Punta Colorada is ongoing. The project is moving into the pipeline installation phase following the completion of a single point mooring anchor, Antares Ship Agents said.

Once completed, the new terminal will support tanker loading operations.

At Argentina's Zona Comun anchorage, availability of VLSFO and LSMGO is good, with both grades deliverable in 5-7 days.

Operations are currently ongoing on a first-come, first-served basis. On Saturday, however, delays and disruptions are possible at the anchorage due to dense fog, a source said.

By Gautamee Hazarika

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