Panama Canal transit restrictions dented bunker sales in November

Fewer vessels arriving for bunkers contributed to drag Panama's total bunker sales down by 12% in November.

Panama bunker sales since January 2020

Changes in Panama bunker fuel sales from October to November:

• Total sales down 52,000 mt to 382,000 mt
• HSFO sales down 18,000 mt to 76,000 mt
• VLSFO sales down 43,000 mt to 254,000 mt
• LSMGO sales up 6,000 mt to 43,000 mt
• 0.50% MGO sales up 3,000 mt to 8,000 mt

Panama's total bunker sales in November touched 382,000 mt - the lowest sales since September 2022.

The number of ships bunkering in Panama’s ports decreased by 101 from October to 535 in November – the biggest monthly drop this year. The average stem size was roughly 713 mt in November, up from 682 mt in October, according to preliminary figures from the Panama Maritime Authority.

VLSFO sales declined by 14% on the month, while HSFO sales fell by 19%. However, LSMGO sales rose by 16% on the month, recording their highest sales level since August 2022.

Two barges were taken offline in Panama, bringing the total to 30 in November.

Total bunker sales for the first 11 months of this year dropped by 5% compared to the same period last year, with HSFO sales leading the decline at 17%, followed by LSMGO with 13% drop.

VLSFO continued to be the most sought-after product this year and accounted for 69% of total sales in Panama. HSFO sales represented 20% of the total and combined MGO and LSMGO sales at 11%.

Bunker sales in November declined by 8% compared to the same month a year ago. This decline can be attributed to a reduction in vessel transits through the Panama Canal, caused by low water levels in Gatun Lake, which is a significant part of the canal.

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

A slowdown in demand, however, boosted the availability of all fuel grades in the Panama bunker market, a source says. VLSFO and LSMGO lead times were around three days and HSFO could also be secured with a lead time of 4-5 days.

Low water levels at the waterway can cause vessels to wait in queue for several days or weeks. The vessels do have the option to pay millions to skip the long queue or choose to sail longer routes around South America, which subsequently increases costs.

By Debarati Bhattacharjee

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