Fuel demand improves in Houston

Container volumes rise in Los Angeles

LSMGO and VLSFO good availability in Brazil

IMAGE: A line of cargo and tanker ships crossing Trinity Bay, from the Gulf of Mexico to the Port of Houston. Getty Images

North America

Bunker fuel demand has picked up in Houston over the last week. Recommended lead times for VLSFO and LSMGO are between 4–6 days, while HSFO will require at least 7 days for delivery.

There is some operational tightness and barge congestion at the port that has been reported, but overall, the port remains well supplied across all fuel grades, a source said.

Bunkering operations at the port appear to be minimally impacted by the recent geopolitical tensions.

“We have not seen any direct or drastic impact on premiums or demand. The tensions lasted for roughly 12 days, which is not considered a very long period in the shipping industry, for us to see a sizeable impact,” a bunker trader said.

The hurricane season is currently in effect, specifically impacting the Atlantic Ocean, Caribbean Sea, and Gulf of Mexico, and will run through 30 November.

New York is seeing a decline in HSFO demand compared to the past few weeks. Lead times stand at roughly 5–6 days.

LSMGO and VLSFO are the primary grades being bunkered more frequently and are available for prompt delivery at the port.

Suppliers recommend lead times of 3–5 days for these two grades.

New York is also facing possible disruptions from high winds between 26–28 June. While there’s no reported backlog congestion, anchorage deliveries could see some delays.

Bunker fuel demand in Los Angeles remains decent, with the port expecting 25 scheduled vessel calls over this week.

“West Coast hasn't been the busiest, but safe to say steady,” a source said.

In terms of lead times, the recommended duration stands at less than a week to around 7 days to secure avails and avoid prompt pricing.

According to the Port of Los Angeles, inbound container volumes are set to remain strong over the next two weeks, with 134,278 TEUs expected to arrive during the week of 22–28 June, which is a 20.05% jump from the previous week and a 67.61% increase on a year-on-year basis.

Montreal is forecast to see high wind gusts between 27–29 June. Barge operations are restricted to daylight hours, and anchorage deliveries could be delayed due to bunker barge readiness issues.

Latin America and the Caribbean

Although crude prices plunged significantly owing to the recent tensions between Israel and Iran, Panama did not see much market movement, a source said.

Bunker fuel demand is weak in Balboa and Cristobal, and traders have received few inquiries over the week.

All fuel grades are available at the port within recommended lead times of 4-5 days.

In Freeport, Bahamas, weather conditions are favourable. However, cruise ships are given delivery priority, which may impact bunker availability for other vessels.

The first LNG tanker delivery to Puerto Rico has been completed, marking a boost for cleaner marine fuels in the Caribbean.

The shipment was carried out by Crowley, a US-owned shipping and logistics company, which is also expanding its international operations with a new container route linking the US Northeast and Central America.

In Argentina’s Bahia Blanca, the first vessel SEAWAYS EAGLE, scheduled to call at the new “Rosa Negra” berth belonging to Otamerica, has been postponed due to bad weather conditions.

“Over the last two days, weather conditions in the area have deteriorated, and it was agreed by all parties to wait for an improvement, at least for the first call,” Antares Ship Agents informed.

In Zona Comun, deliveries have resumed after being suspended for the last three days. VLSFO availability is good at the anchorage, and recommended lead times stand at 5–6 days.

There are currently five barges in operation at the anchorage.

Possible disruptions are expected again over the weekend, which could lead to delays in bunkering operations, a source said.

In Brazil, bunker fuel demand is decent. The availability of VLSFO and LSMGO is good for prompt delivery at the ports of Rio Grande and Rio de Janeiro, with lead times of 3–5 days.

The port of Santos is facing congestion as per usual. Availability is a bit tight, with suppliers recommending at least 7 days to complete deliveries.

Brazil does not typically bunker HSFO. The only ports where HSFO is usually available are Balboa and Bahia Blanca, where Trafigura offers the grade.

Bunker supply remains steady at Colombian ports including Barranquilla, Cartagena, and Santa Marta, where lead times are relatively short at around 2–3 days and deliveries are running smoothly.

By Gautamee Hazarika

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