Americas Fuel Availability Outlook 7 May

Bunker supply tight in Los Angeles

Deliveries suspended in offshore Trinidad

VLSFO and LSMGO tight in Zona Comun

IMAGE: Cargo Container at Port of Cartagena, Colombia. Getty Images.

North America

In Houston, bunker demand for all three conventional fuel grades remains healthy. Prices are currently volatile, caused by global tensions and Brent's movements, a trader told ENGINE.

Some suppliers are only accepting enquiries with minimum stem sizes of 300–500 mt. Availability for prompt supply remains tight across HSFO, VLSFO, and LSMGO, with recommended lead times exceeding 5 days this week.

The US Gulf Coast is currently in its fog season. At the Galveston Offshore Lightering Area (GOLA), possible disruptions due to high wind gusts are expected between 7 and 11 May, which could lead to delays in bunker deliveries, a source said.

Sea fog and visibility risks across the US Gulf Coast are expected to remain mostly low over the coming week, although periods of moderate fog risk are forecast between Friday and Sunday at several ports, including Corpus Christi, Freeport, Galveston, Port Arthur, Lake Charles, and New Orleans.

The highest disruption risk is forecast at Mobile, where high fog threats and reduced visibility are expected over the weekend into Monday, potentially impacting vessel movements and bunker operations.

Demand in New York has remained steady over the past week, with particularly strong demand from the container shipping segment.

LSMGO availability is expected to tighten across the US East Coast. Currently, recommended lead times for VLSFO and LSMGO are between 3–5 days, and HSFO needs around 7–8 days, a source said.

On the US West Coast, in ports of Los Angeles and Long Beach, bunker demand is high, and availability is tight across all three fuel grades. Some suppliers are unable to offer stems due to supply shortages, a source said.

Lead times are currently stretched, with more than a week required to secure avails, a trader told ENGINE.

Latin America and the Caribbean

In Panama, bunker demand is high alongside high prices, a trader said.

Availability in the ports of Balboa and Cristóbal is normal for VLSFO and LSMGO, with recommended lead times of 4–6 days. HSFO requires slightly longer lead times of 5–7 days.

In offshore Trinidad, possible disruptions from high wind gusts and elevated sea conditions are expected through Monday.

Deliveries are currently facing suspensions due to adverse weather conditions, a trader told ENGINE.

In Colombia, VLSFO availability is tight in the ports of Cartagena and Santa Marta, with recommended lead times of 4–5 days, a trader said.

LSMGO is better positioned for prompt supply, with the earliest delivery dates available in around 3 days.

In Brazil, bunker demand remains good, with availability varying across ports.

In Santos, availability is normal for both VLSFO and LSMGO, with recommended lead times of 5–8 days.

In Rio de Janeiro and Vila do Conde, availability for both fuel grades is okay, with suppliers recommending lead times of 4–5 days this week.

Meanwhile, in Paranaguá and Rio Grande, availability of VLSFO and LSMGO is tight and is being offered only on a prior consultation basis, a source said.

Argentina’s Necochea has returned to full operations after a two-week disruption caused by truck driver protests over freight rates following higher fuel costs linked to the Strait of Hormuz blockage, a ship agency has informed.

Similar blockades had also impacted Bahia Blanca for around 10 days and caused minor disruptions around Argentina’s upriver ports. With revised tariffs now agreed, cargo operations have resumed normally across the affected ports, the agency added.

In Zona Comun, possible disruptions and prolonged delays in bunker deliveries are expected between 7-11 May due to high wind gusts blowing in the anchorage location, a source said.

Availability for VLSFO and LSMGO is tight this week, with lead times extending to 8-10 days this week.

Currently, deliveries are underway but are expected to be suspended if winds blow over 20 knots, as per local authorities' guidelines.

By Gautamee Hazarika

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