Hurricane Erin active along East Coast

Panama lead times shorten on strong supply

Argentina's Upriver drought persists

IMAGE: Cranes loading a container ship at a marine terminal in New York. Getty Images.

North America

Bunker fuel demand is healthy in Houston, with normal availability across all grades for prompt deliveries. VLSFO and LSMGO can be supplied within 3–4 days, while HSFO requires about 5 days this week, a bunker trader told ENGINE.

Afternoon and evening thunderstorms are forecast between Thursday and Friday, which can bring high wind gusts and heavy downpours. Currently, no weather alerts are in effect at the port.

The Houston Ship Channel expansion (Project 11) continues, backed by $33 million in federal funding and $98 million for dredging and maintenance.

Additionally, after a leak near southeast Houston, the Seaway crude oil pipeline system, which is a key link transporting crude from Cushing, Oklahoma, to the Texas Gulf Coast, resumed full service earlier in the month, restoring flows to Freeport.

In Corpus Christi, the Coast Guard is advising all mariners to exercise caution and remain within the ship’s confines while transiting under the New Harbor Bridge due to fall hazards associated with ongoing construction.

Availability at Corpus Christi is decent. The shortest time a supplier can deliver VLSFO and LSMGO at the port is around 2-3 days.

Dredging operations in the Valero Basin of the Sabine–Neches Waterway have been ongoing since 5 August, limiting vessel movement.

A dredge window for ship traffic is in effect from 4 pm to 8 pm, during which vessels can transit safely. Outside this period, dredging equipment obstructs the channel, and vessel traffic is suspended, a ship agent informed.

Availability remains good at Galveston Offshore Lightering Area (GOLA), where suppliers can offer HSFO and LSMGO with lead times of 3–4 days. VLSFO can be delivered within lead time of around 5–6 days.

The weather at the anchorage location is normal this week, with no extreme disruptions expected.

Suppliers in New York can provide VLSFO and LSMGO within 6–7 days, while HSFO remains less readily available and requires longer lead times due to adverse weather, a source said.

At the port, east winds of 15–20 knots with gusts up to 25 knots are expected, with waves rising between 2–3 feet. Showers are likely, with a slight chance of thunderstorms, and visibility is forecast to range between 1–3 nautical miles.

These conditions are likely to disrupt bunkering schedules and lead to barge delays, a source said.

The Atlantic hurricane season is underway, with Hurricane Erin currently active. Marine warnings have been issued for the Atlantic and the Southwest North Atlantic.

Hurricane Erin, though remaining offshore, is driving hazardous conditions along the US East Coast, including New York and New Jersey waters.

The US National Weather Service (NWS) has issued a small craft advisory for New York, warning that wind and sea conditions could be hazardous for smaller vessels.

"Small vessel and barge operations are under strain. High surf and gale conditions could delay or limit barge-based bunkering, especially in outer anchorage zones or lightering areas," a ship agent said.

Prompt availability across all fuel grades is good in Los Angeles and Long Beach, with suppliers recommending lead times of 5-7 days for VLSFO and LSMGO.

Latin America and the Caribbean

Bunker fuel demand is steady in Panama, and fuel availability has improved at the port. The port has recorded a higher demand for VLSFO over the past week and can be supplied within lead times of 3-4 days.

"Demand-wise there is not much variation. But avails have picked up. We are noticing more suppliers are being able to deliver in shorter durations," a bunker trader said.

HSFO and LSMGO fuel stocks are also reported to be healthy at Balboa and Cristobal, where suppliers are typically asking for the same lead time as VLSFO.

In Colombia, the ports of Cartagena, Santa Marta, and Barranquilla report good stocks of VLSFO and LSMGO, with the earliest delivery in three days.

Santos in Brazil is expected to face congestion over the next 5–7 days, though operations have largely remained normal, with estimated delivery lead times around 7–8 days for VLSFO and LSMGO.

Rio Grande and Rio de Janeiro report lead times of 5–6 days for both grades.

A local bunker trader noted that HSFO is available at nearby bunkering spot Bahia Blanca at Argentina with one supplier, but the grade is not offered at the Brazilian ports.

In Argentina, water levels continue to fall due to ongoing drought at Upriver, and it is still unclear when they will start to rise again, Antares Ship agents informed.

In Zona Comun, VLSFO and LSMGO are reported to have decent availability, with lead times unchanged from last week at 5-7 days of time.

Winds at the anchorage are expected from the east-southeast at 6–17 knots, with gusts reaching up to 23 knots. Bunkering operations are likely to be delayed, as they are typically suspended when winds exceed 20 knots.

By Gautamee Hazarika

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