Availability is tight for prompt delivery in Houston

A supplier hikes bunker rates in NOLA

Strong demand in Canada's East Coast ports

PHOTO: View of Kingston Harbour in Jamaica. Getty Images

North America

Houston has experienced a slight surge in bunker fuel demand this week, leading to tight availability across all fuel grades for prompt supply. Most suppliers are fully booked until the first week of August, with only one supplier able to offer VLSFO and LSMGO stems in smaller quantities with a lead time of 7-8 days.

Demand has been good in Port Bolivar and Beaumont, where prompt HSFO, VLSFO, and LSMGO supply is tight. A lead time of more than seven days is recommended in both ports.

Prompt VLSFO availability at the New Orleans Outer Anchorage (NOLA) is slightly better. The grade can be secured with a lead time of 4-5 days. However, securing LSMGO can be tough for prompt dates in NOLA. Many suppliers are already fully booked due to high demand in recent weeks.

Bunker prices in New Orleans are set to rise as bunker supplier John W. Stone Oil Distributor implements a new flat rate from 15 August. The flat rate will rise from whichever is greater of $15,436 and $14.29/mt, to whichever is greater of $16,980 and $15.72/mt. This means an increase of at least $1,544 or $1.43/mt. This rate will be added to the bunker cost and will only apply to Stone Oil’s deliveries.

Compared to other US Gulf Coast ports, demand has been low in Corpus Christi this week. Both VLSFO and LSMGO stems can be secured with a lead time of 5-7 days.

Bunkering has been proceeding normally in the Galveston Offshore Lightering Area (GOLA) this week. The weather is forecast to be calm over the weekend and most of next week. Demand has been steady and securing prompt VLSFO and LSMGO stems are also possible, a source says.

All grades are tight for prompt delivery dates in the West Coast ports of Long Beach and Los Angeles. Most suppliers require more than seven days of lead time to deliver VLSFO and LSMGO stems in both ports.

Prompt VLSFO and LSMGO are available in the East Coast port of New York.

Demand has risen in the East Coast ports of Canada like Montreal and Halifax this week. The uptick in demand has pushed bunker prices higher in both ports, a source says.

Caribbean and Latin America

Bunker fuel demand has picked up across Panama's ports after a period of low demand for both fuel grades in the previous week. Availability of all fuel grades is good in Panama’s Balboa and Cristobal. Most suppliers can deliver stems in both locations with 4-6 days of lead time.

In Jamaica's Kingston, securing LSMGO and VLSFO stems for prompt dates is possible, with one supplier offering both grades with a lead time of 2-3 days.

Bunker deliveries are expected to be disrupted in St. Eustatius later today due to strong wind gusts of up to 30 knots, which could intermittently disrupt bunker deliveries until Sunday.

VLSFO and LSMGO grades are readily available at Argentina’s Zona Comun anchorage. However, limited barge availability has continued to cause bunkering delays in Zona Comun. The bunker barge Gustavo U has been under maintenance since 5 July due to periodic inspections and repairs. Although it is at the berth now, it has not resumed commercial operations.

A source says it is expected to be operational again later this week.

Bunker fuel demand has been better in most of the Brazilian ports this week. VLSFO availability is good in most of the ports, according to most suppliers. However, lead times of 7-10 days are still recommended for the grade to ensure full coverage from suppliers and to avoid price premiums for faster deliveries, a trader said.

By Debarati Bhattacharjee

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