Funding secured for Houston channel expansion

Bunker demand picks up in Panama

First crude tanker loads at new Bahia Blanca berth

IMAGE: Heavy industrial rigs at a shipyard near Houston, Texas. Getty Images

North America

Bunker demand in Houston has held steady this week, with limited movement recorded in the spot market, a source said.

HSFO and VLSFO are readily available at the port, with suppliers advising lead times of 5–7 days. LSMGO is available with slightly shorter lead times of 3–5 days.

The Houston Ship Channel expansion project secured full federal funding on Wednesday, with $161 million allocated in the US President’s 2026 budget.

The project takes aim at widening and deepening key sections of the channel, to ease congestion and allow more and larger vessels to transit safely.

Offshore bunker deliveries are being hit by worsening weather, particularly in Bolivar Roads and the Galveston Offshore Lightering Area (GOLA), where waves of up to 5 feet are forecast between 19–21 June.

Deliveries are underway but may be delayed, with bunker vessels assessing conditions on a case-by-case basis.

New Orleans is operating normally, with no weather or operational disruptions reported this week.

Bunker supply remains steady in New York, with lead times of 3–5 days for VLSFO and LSMGO, and 5–7 days for HSFO. Bunker demand has eased slightly compared to earlier this year, possibly indicating a slowdown heading into the third quarter, a source informed.

Strong wind gusts are forecast in New York between 19–22 June and may cause brief disruptions, though no backlog or congestion has been reported.

A new container terminal is planned at Hunts Point in the Bronx, replacing the decommissioned Vernon C. Bain jail barge. The terminal is expected to open by 2030–31.

On the West Coast, bunker demand has picked up modestly in Los Angeles, with suppliers recommending lead times of at least seven days to avoid spot premiums.

Container volumes in the Port of Los Angeles rose to 122,000 TEUs this week, up by 29% from last week and 41% up on the year.

For the upcoming week, port authorities project container volumes to increase to 125,000 TEUs, which would be a 3% weekly gain. The number of scheduled vessels is expected to rise from 21 to 23.

In Montreal, high wind gusts between 18–22 June could delay bunker operations. Barge operations are limited to daylight hours, which can contribute to anchorage delays.

Latin America and the Caribbean

Panama bunker demand has improved this week. Bunker fuel sales for May reached 453,000 mt, up 14% year-on-year, though down 1% from April, according to the Panama Maritime Authority.

All fuel grades in Balboa and Cristobal are available within lead times of 5–7 days.

Balboa is forecast to see strong winds and thunderstorms from 18–21 June, which could affect deliveries. Operations are being carried out on a first-come, first-served basis, with transit-confirmed vessels prioritised.

No weather disruptions have been reported in the Bahamas' Freeport, though heavy cruise traffic could impact bunker vessel turnaround times.

The National Hurricane Center has issued an advisory on the tropical storm Erick, located in the eastern Pacific near southern Mexico.

An area of low pressure is forecast to form early next week off the coast of Central America, with a 20% chance of development over the next seven days.

The system may move west-northwestward off the coasts of Guatemala, Costa Rica, and southern Mexico, potentially impacting bunkering operations in the region.

In St. Eustatius, deliveries continue at anchorage with no disruptions reported. Cruise ships are given priority.

Offshore Trinidad is likely to face delays from Thursday until Monday next week due to high wind gusts and rough seas.

"Deliveries are carried out while vessels are underway, but timing will depend on location-specific conditions assessed by supply vessels," a source said.

The P.Monterey is set to be the first crude tanker to load at the new oil berth in Argentina's Bahia Blanca, around 20 June. It will load 110,000 mt of crude for Shell and Pluspetrol, bound for the US. This new export flow may boost bunker demand in the Bahia Blanca/Puerto Rosales area as more large tankers call in, Antares Ship Agents informed.

In Zona Comun, VLSFO availability is decent with recommended lead times of 5-6 days.

Strong wind gusts exceeding 20 knots are forecast from 22–24 June, likely delaying bunker deliveries. Operations remain on a first-come, first-served basis and will be weather-dependent, another source noted.

Brazilian ports Santos, Rio de Janeiro, and Rio Grande report good fuel availability, with VLSFO and LSMGO offered for prompt delivery and 5–7-day lead times.

Operations in Santos remain affected by some congestion, though conditions are expected to ease in the upcoming days. There are currently 42 vessels in port and 61 vessels recently departed.

Barranquilla, Cartagena, and Santa Marta are seeing stable supply and short lead times of 2–3 days.

By Gautamee Hazarika

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