Strong demand in US West Coast ports

Availability is tight in Zona Comun

Panama anticipates demand boost

PHOTO: Aerial view of the Port of Houston, Texas. Getty Images

North America

Bunker demand has increased in Houston and several other ports along the US Gulf Coast. VLSFO and LSMGO can be secured for prompt dates in Houston despite strong demand, a source says. A supplier is able to offer both fuel grades within three days. Prompt HSFO supply remains tight, and 7-9 days of lead time is recommended for the grade.

In Beaumont and Bolivar Roads, suppliers are able to deliver LSMGO and VLSFO stems with a shorter lead time of 3-5 days. However, bunker deliveries in both locations are subject to weather conditions and the availability of anchorage space, a source says.

Bunker operations in the Galveston Offshore Lightering Area (GOLA) resumed on Thursday after being suspended for a day due to rough weather. Strong wind gusts are forecast again from Sunday onward and may impact bunkering in the area.

Prompt availability remains tight for all grades in the West Coast ports of Long Beach and Los Angeles amid strong demand in the twin ports. Lead times of about seven days are recommended for VLSFO and LSMGO, and a much longer lead time of 10-12 days for HSFO.

Bunker demand in the East Coast ports of New York and Norfolk has been good amid the ongoing suspension of all vessel traffic in and out of Baltimore. Most suppliers are able to deliver stems for prompt dates.

Caribbean and Latin America

Demand has remained good in Panamanian ports, with more daily transits through the Panama Canal. Availability has also remained good for prompt dates in both Balboa and Cristobal. The Panama Canal Authority (ACP) recently announced an increase in transit capacity, with the number of ships allowed through set to rise to 32/day from the 27/day limit announced last month. The changes in the number of daily transits signal a positive turnaround in Panama’s battle against drought conditions caused by El Nino.

Traders are expecting bunker demand to increase further from mid-May onwards, when the new transit limits will be implemented.

VLSFO and LSMGO availability is good in Jamaica’s Kingston. One supplier requires lead times of at least 5-6 days to deliver stems.

Bunker operations resumed in Argentina's Zona Comun on Thursday after being suspended for nearly nine days due to bad weather conditions. VLSFO and LSMGO availability remains very tight for prompt and non-prompt dates at the Zona Comun anchorage. Several suppliers are able to only deliver stems for delivery dates in the first week of May, a source says.

Availability is still tight in several Brazilian ports. The earliest delivery date in Santos is 29 April. Similarly, in Rio Grande and Rio de Janeiro, the recommended lead time is around 10-12 days, a source says.

By Debarati Bhattacharjee

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