Bunkering delayed in Houston

Prompt availability is tight in Los Angeles

Rough weather disrupts Zona Comun bunkering

PHOTO: Cranes at the Port of New York and New Jersey and a silhouette of the Statue of Liberty. Getty Images

North America

Bunker demand in Houston for very prompt dates has slowed as barges in the area grapple with delays following the temporary closure of the Houston Ship Channel last Sunday due to flooding.

Despite the channel reopening on Monday evening, suppliers are still working to catch up with deliveries and reload barges from oil terminals. Delays are expected for deliveries in the region until delivery schedules return to normal.

Several suppliers have cancelled their bunker bookings in the affected area for immediate deliveries. Conditions are expected to improve soon, as suppliers are still able to offer VLSFO and LSMGO stems with lead times of 5-6 days, a source says.

Delivery delays have also impacted bunker supply on Bolivar Road, with one supplier offering VLSFO and LSMGO with a lead time of 7-8 days. Securing prompt VLSFO and LSMGO is possible in Beaumont and offshore Beaumont.

Bunkering has been proceeding normally in the Galveston Offshore Lightering Area (GOLA) amid conducive weather conditions. The weather is forecast to remain calm over the weekend and into next week.

Demand has been good for all fuel grades in GOLA. Prompt VLSFO and LSMGO can be secured there, a source says.

Despite weak demand, all grades are tight for very prompt delivery dates in the West Coast ports of Long Beach and Los Angeles. Lead times of more than seven days are generally recommended to avoid pricing premiums in the West Coast ports, a source says.

Prompt VLSFO and LSMGO are available in the East Coast port of New York. However, some buyers are lifting bunkers in the Gulf Coast ports rather than New York, mainly because prices are lower there. As a result, some of the enquiries have been diverted to ports on the Gulf Coast, a source says.

Caribbean and Latin America

The Panamanian port of Cristobal has seen a spike in demand this week as some bunker suppliers have cancelled their bunker bookings in Houston and secured bookings in Cristobal instead. This shift comes in response to the delays observed in Houston, a source says.

Demand in Balboa has also been good, and all the fuel grades can be secured with a lead time of 5-7 days.

VLSFO and LSMGO availability is good in Jamaica’s Kingston. One supplier requires a lead time of at least 3-5 days to deliver stems.

Bunker operations have been suspended in Argentina's Zona Comun anchorage since Wednesday due to strong wind gusts. Calmer weather is forecast on Thursday, which could allow bunkering to resume.

Availability of both VLSFO and LSMGO has been tight in Zona Comun this week.

Major Brazilian ports are grappling with availability challenges. Brazilian petroleum firm and bunker supplier Petrobras will temporarily be unable to provide LSMGO in Rio de Janeiro due to maintenance of its LSMGO supply barge.

The scheduled maintenance will commence on 12 May and continue until mid-June. It will still continue to offer VLSFO in Rio de Janeiro, along with LSMGO in other Brazilian ports such as Paranaguá, Rio Grande, Santos, and Suape.

Brazilian energy firm Raizen is unable to deliver stems in Rio Grande because of severe flooding there. Consequently, the company has redirected its supply operations to Salvador for the stems that were originally booked in Rio Grande. It also plans to offer VLSFO at discounted prices in Salvador.

By Debarati Bhattacharjee

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