HSFO availability tight in Houston

Panama receives HSFO resupply

Low water levels restrict vessels in Argentina

IMAGE: Harbor of San Cristobal in the Galapagos, Ecuador. Getty Images

North America

The Houston market has been relatively slow this week. Bunker fuel availability is good for both VLSFO and LSMGO, where suppliers have recommended lead times between 3-7 days.

The shortest time a supplier can deliver these two fuel grades are 1-2 days at prompt prices.

HSFO fuel availability is tight at the Port of Houston and requires a lead time of at least 7 days.

"For HSFO in Houston, planning and booking ahead is ideal because fewer suppliers carry that grade compared to VLSFO. Otherwise, avails overall are looking pretty normal" a bunker trader told ENGINE.

Hurricane season, which began earlier on 1 June, is currently at its most active stage.

The upcoming two months are anticipated to experience rough weather conditions and intermittent showers, which can affect bunkering operations in the region.

During the past week, the US Gulf coast has experienced strong showers and thunderstorms, which have resulted in minor delays at the ports, especially around Bolivar roads and the Galveston Offshore Lightering Area (GOLA).

Availability is good at GOLA, and suppliers can offer VLSFO and LSMGO with lead times of 2–3 days in most cases, a source said.

HSFO is available with around 5–6 days of lead time.

Fuel demand in New York is mostly unchanged from last week, and availability conditions at the port remain normal.

All three bunker fuel grades are available within 5-7 days.

Heavy showers and thunderstorms on Thursday evening are expected at the port of New York, which can reduce visibility to 1–3 nm. This can result in possible bunkering delays at the anchorage.

In Los Angeles and its twin port Long Beach, HSFO and LSMGO are well stocked and can be delivered in lead times of 4-5 days, a local supplier informed.

VLSFO stocks are healthy, but the fuel grade is much more in demand compared to the other two. Suppliers have recommended roughly 7-8 days of time to make deliveries.

Latin America and the Caribbean

The market in Panama continues to have steady to low demand, after seeing a few busier weeks recently.

July bunker sales saw the lowest numbers since the beginning of the year, according to the Panama Maritime Authority. Bunker sales were this low last back in June 2024.

According to a bunker supplier in the region, there are currently no significant issues with availability of any fuel grade. HSFO stocks have recently been resupplied, contributing to healthy stocks at the port.

All three main grades of HSFO, VLSFO, and LSMGO in the two ports of Balboa and Cristobal can be delivered within a lead time of 3–5 days.

No major weather disruptions are expected in the region, and bunkering operations are expected to continue smoothly.

VLSFO and LSMGO have good availability at Colombia’s Cartagena, Santa Marta, and Barranquilla. Recommended lead times stand between 2-3 days this week.

In Ecuador, VLSFO availability is robust for prompt delivery with lead times of 4-5 days. The port also supplies HSFO and LSMGO, and they are available within 5 days or less for delivery, another source informed.

HSFO holds a high discount here, compared to many other neighbouring ports, because Ecuador has an advantage as it produces a high amount of residual fuel oil and has ample supply for the grade.

This makes HSFO cheaper for bunker buyers than low-sulphur grades, compared to other ports in the region.

Fuel availability in Brazil is reported to be steady, and lead times for VLSFO and LSMGO are around 5–6 days at Rio Grande and Rio de Janeiro.

In Santos, congestion remains an ongoing issue, and the port has slightly longer lead times of 7-8 days.

In Argentina, the second berth at the Oiltanking pier in Bahia Blanca is expected to soon become operational, allowing two more vessels to load or discharge at the same time at a rate of 5,000 cbm per hour each.

Plans are also in place for a third berth to handle the rising crude output from an oil deposit in the region called Vaca Muerta.

Authorities are studying ways to increase the maximum sailing draft from the current 13.71 meters to 15.6 meters to allow for larger vessels, a ship agent said.

In the region, low to mid-low water levels on the Paraná River are expected to restrict both vessel type and its movement.

"Vessels may have to carry lighter loads in future transit, if with less rain, water levels continue to drop, " a source said.

In Zona Comun, VLSFO and LSMGO are available in good stock. Lead times have largely been unchanged from last week, where suppliers have informed that they are usually asking between 5-7 days to make deliveries.

Winds are forecast to remain below 20 knots until late Friday at the anchorage location. However, beginning early Saturday, high wind gusts will rise to 23 knots, which can lead to bunker operations being suspended.

Conditions are to persist until midday Saturday, post which deliveries are expected to resume.

By Gautamee Hazarika

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