Americas Fuel Availability Outlook 8 Oct

Hurricane Isaias threatens US Gulf ports

Operations set to be suspended in GOLA

Supply very tight in Zona Comun

IMAGE: The tugs and cargo ships docked at a port in the Caribbean. Getty Images

North America

Bunker fuel demand in the port of Houston has dipped slightly over the week.

Prompt availability for all three conventional fuel grades is tight, with suppliers recommending at least five days of lead time, a trader said.

In the Galveston Offshore Lightering Area (GOLA), LSMGO can be delivered within 3-4 days, while HSFO and VLSFO require 6-7 days of lead time.

High winds and seas could disrupt deliveries in GOLA between 8 and 10 October, with gusts of up to 26 knots and waves of up to 1.6 metres forecast for Friday.

Operations may be suspended later on Thursday, and deliveries are expected to stop from Friday morning, a source tells ENGINE.

Hurricane Isaias is expected to disrupt port operations along the northern US Gulf Coast as it strengthens and approaches on Friday.

The Port of Mobile is under Port Condition "X-Ray", and the Alabama Port Authority plans to suspend vessel operations at its public berths from noon local time on Thursday.

Port Condition X-Ray is the second of the US Coast Guard's four hurricane readiness levels for a port. The Coast Guard sets it when gale-force winds of 39 mph or more are expected within 48 hours.

Gulfport, Pascagoula, Pensacola and Panama City are also under X-Ray, according to the US Coast Guard.

In New Orleans (NOLA), wind gusts of up to 32 knots could disrupt and delay bunker operations between 8 and 10 October, a source said.

All three conventional fuel grades are available in NOLA. Lead times of 6-7 days are recommended this week, a trader said.

In New York, bunker demand is good heading into the fourth quarter. Recommended lead times this week are four days for LSMGO, five days for VLSFO and six days for HSFO.

Price premiums for VLSFO and LSMGO are reported to have remained high in the East Coast port and dented demand. Meanwhile, HSFO has maintained a steady price at the port and continues to have good demand this week, a trader said.

No major weather disruptions are expected in New York.

In Los Angeles and Long Beach, bunker operations have been ongoing, with no weather disruptions expected at the ports, a trader said.

Demand at the ports has been strong this week. Suppliers have recommended lead times of 3-7 days for HSFO and LSMGO, while VLSFO has been available within 5-7 days, a source said.

In Canada's Vancouver, HSFO can be supplied within 5-7 days, while VLSFO and LSMGO are available with lead times of 3-7 days.

Latin America and the Caribbean

The Panama bunker fuel market has had decent availability. All three conventional fuel grades are deliverable within 3-6 days at Balboa and Cristobal, a supplier said.

Deliveries at Balboa are first-come, first-served, with priority given to vessels with confirmed canal transits.

No weather disruptions are expected at Freeport in the Bahamas, St. Eustatius or off Trinidad, though cruise ships take priority for deliveries at Freeport and St. Eustatius.

In Colombia, the ports of Cartagena, Santa Marta and Barranquilla have good availability for VLSFO and LSMGO, with the earliest delivery dates 3-5 days out.

VLSFO availability is okay in Callao, with recommended lead times of 5-8 days.

LSMGO is tight, with lead times of over a week, while HSFO is very tight and available only under prior consultation, a trader tells ENGINE.

VLSFO and MGO availability are okay across Chilean ports, with recommended lead times of 5-8 days. HSFO is no longer available in the country.

In Brazil, all three grades are available only under prior consultation in Rio de Janeiro. VLSFO and LSMGO availability are very tight this week, with at least a week's notice needed to secure stems, a source said.

VLSFO and LSMGO availability is okay at Santos, with recommended lead times of 5-8 days, though the port is congested.

The earliest delivery date for VLSFO and LSMGO in Paranagua is 11 October, and supply is tight after that. In Rio Grande, the earliest delivery date for both grades is 16 October.

At Belem and Vila do Conde, VLSFO and LSMGO availability is okay, with recommended lead times of 5-8 days.

In Argentina's Zona Comun, VLSFO and LSMGO are very tight and available only under prior consultation, a source said.

Operations at the anchorage could be suspended on Friday, with wind gusts forecast to exceed 20 knots. A suspension could result in additional delays at the anchorage.

By Gautamee Hazarika

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