Tropical storm could disrupt GOLA bunkering

HSFO tight in New York

Availability tight in congested Santos

IMAGE: A container ship at the Port of Buenos Aires, Argentina. Getty Images

North America

Bunker fuel demand has improved over the week in Houston, and availability is good across all three fuel grades at the port.

"We can offer HSFO at $428-429/mt and LSMGO at $681-695/mt, under a week. VLSFO availability also good," a bunker trader said.

The shortest time for HSFO and LSMGO in Houston is 2-3 days.

In Bolivar Roads, the shortest time a supplier can offer for HSFO and LSMGO deliveries is roughly five days.

In Corpus Christi, LSMGO can be delivered via ex-pipe with lead times of 1-2 days. VLSFO is also in good availability, but has to be delivered via barge and will require slightly more time for delivery, a source said.

In New Orleans, VLSFO and LSMGO are available for prompt delivery and can be supplied in 2-3 days via barge.

Strong wind gusts are expected in New Orleans on 18 July, which may delay bunker deliveries, particularly if thunderstorms accompany them.

For the Galveston Offshore Lightering Area (GOLA), a tropical storm system in the Gulf of Mexico could disrupt bunker operations this week. GOLA deliveries are typically managed on a first-come, first-served basis and are highly weather-dependent. Operations could be disrupted quickly if the system develops, so vessels should plan bunker lifts with caution, a source said.

In New York, HSFO supply is running tight. “We don’t have any spot HSFO at the moment," a supplier said. The shortest lead time for HSFO is over seven days in New York Harbour this week.

VLSFO and LSMGO availability is comparatively good. But suppliers have recommended extended lead times for these fuel grades this week, up from 3-5 days last week to 5-7 days now.

High wind gusts are forecast in New York between 17-21 July and could disrupt bunker deliveries. There is currently no backlog or barge congestion.

On the West Coast, bunker demand remains stable in Los Angeles.

"The market has remained fairly the same as last week. We haven’t seen many bookings this week, so far. Availability is okay, I would say," a bunker trader said.

All three fuel grades can be delivered with lead times of 7-8 days in Los Angeles.

The Port of Los Angeles handled 892,000 containers in June, which was 8% more than in the same month last year. It was the port’s busiest June since it began operations 117 years ago.

"Some importers are bringing in year-end holiday cargo now ahead of potential higher tariffs later in the year," the port's executive director Gene Seroka said.

"July may be our peak season month as retailers and manufacturers bring orders in earlier than usual, then brace for trade uncertainty," Seroka added.

Meanwhile, the number of scheduled vessels dropped from 24 last week to 21 this week.

Montreal is experiencing high wind gusts from 17-18 July, which could disrupt operations. Bunkering is already constrained here, as barges only work during daylight hours. This limits flexibility and could lead to delays if the winds worsen.

Latin America and the Caribbean

Bunker demand has been slow in Panama this week. Suppliers in Balboa and Cristobal can offer VLSFO and LSMGO with lead times of 5-7 days.

HSFO is currently available more readily and can be supplied with a shorter lead time.

Balboa is clear of disruptions for now, but bunkering is strictly weather-permitting and managed on a priority basis for vessels with confirmed canal transit slots, a source said.

Fuel availability is good in the Colombian ports of Cartagena, Santa Marta and Barranquilla. Lead times stand at less than three days.

In Freeport, Bahamas, one supplier can provide VLSFO and LSMGO with lead times of 8-10 days. No weather-related disruptions are reported. However, cruise ships are prioritised for anchorage deliveries, which may push back bunker timings for cargo vessels, a source said.

Similarly in St. Eustatius, no immediate weather risks are reported, but cruise ships get bunker preference at anchorage.

Bunker demand in Brazil is steady. Suppliers in Rio Grande and Rio de Janeiro can deliver VLSFO and LSMGO in 3–5 days.

Santos is facing extreme congestion, and fuel availability is tighter this week. Suppliers are advising a lead time of at least seven days for deliveries.

In Argentina's Zona Comun, VLSFO can be delivered via barge, and lead times have increased from 5-6 days to 7-8 days due to rough weather conditions.

"Availability can still be considered normal," a local supplier said.

The anchorage location is currently facing high wind gusts, and bunker deliveries have been suspended as winds have exceeded 20 knots. Delays are expected through the afternoon on Thursday.

By Gautamee Hazarika

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