Balboa

Bunkering in Panama, the port of Balboa

The Panama Canal links the Atlantic and Pacific oceans. A voyage from New York to San Francisco that would have taken more than 13,000 miles (21,000 km) around South America and the Horn of Africa can be reduced to just over 5,000 miles (8,000 km) thanks to the 50 mile (82 km) long canal.

Over 13,000 vessels transited the Panama Canal in 2022.

Bunker suppliers offer HSFO, VLSFO and LSMGO grades in Panamanian ports. Balboa at the Pacific Ocean entrance to the Panama Canal is by far the biggest bunker location. Eight physical bunker suppliers offer VLSFO, nine offer LSMGO and five offer HSFO there. These are mostly global bunker suppliers with a presence in several other countries.

Cristobal is situated at the Atlantic Ocean entrance and can be a preferred option for vessels waiting to transit the canal and make good use of their time. Four physical suppliers offer VLSFO and LSMGO grades there, while only one offers HSFO. Colon is another bunker option on the Atlantic Ocean side of the canal, with four suppliers offering VLSFO, two LSMGO and one HSFO.

Bunker suppliers sold 5.23 million mt of bunkers in 2022, up from 5.01 million in 2021. Some suppliers load their barges from bunker fuel storage terminals located on Taboguilla Island in Panama. The storage terminals have 26 bunker fuel storage tanks with a combined capacity of 357,000 cbm.

Around 32 bunker barges operate across Panama. HSFO availability is typically tighter in Cristobal where fewer suppliers offer the grade. Prompt VLSFO and LSMGO supply tends to depend on barge availability and suppliers’ delivery schedules.

During the summer months, the Panama Canal Port Authority will adjust the maximum draft limits for vessels transiting the canal depending on water levels.