Bunker demand rebounds in Los Angeles

Fresh HSFO cargo due in Panama this weekend

Prompt VLSFO supply tight in Santos

IMAGE: Containers stacked in a shipyard in downtown Rio. Getty Images.

North America

Bunker demand in the Port of Houston has remained steady this week, with favorable weather conditions supporting smooth bunkering operations. Winds are forecast to be between 2–7 knots through Sunday, with little to no rain expected.

The port continues to experience some barge congestion, but overall HSFO availability has improved, with recommended lead times of around seven days.

VLSFO and LSMGO remain more readily available, with suppliers advising lead times of 5–7 days.

In New Orleans, Louisiana (NOLA), all three fuel grades are available with recommended lead times of 6–7 days, amid steady demand.

The shortest time that HSFO and VLSFO can be delivered in NOLA is under five days.

Amid the ongoing hurricane season, the last advisory issued by the National Hurricane Center was for Kiko in the Eastern Pacific and Central Pacific regions on Tuesday.

Since then, the hurricane has weakened into a tropical storm. Currently, there are no active hurricanes reported; however, marine warnings remain in effect for the Eastern Pacific.

Additionally, tropical cyclone activity is not expected in the Central Pacific, between 140°W and 180°, over the next seven days.

It is recommended to exercise caution and closely monitor weather forecasts for deliveries in the Galveston Offshore Lightering Area (GOLA) and Bolivar Roads, as the hurricane season runs through the end of November.

Fuel availability is good in GOLA, where both VLSFO and HSFO can be delivered within 5–6 days. LSMGO is also available at the anchorage location, and suppliers have recommended around 5 days to make deliveries.

GOLA has been facing calm seas and moderate to light winds, resulting in a conducive environment for bunkering, a bunker trader tells ENGINE.

In Bolivar Roads, VLSFO and LSMGO can be delivered within 7-8 days.

In New York, demand for VLSFO and HSFO has been stable and is expected to hold through the upcoming weeks. However, LSMGO demand in New York has weakened.

Fuel availability remains healthy, with suppliers advising 3–5 days of lead time across all three grades. Spot inquiries at the port have slowed compared to recent weeks, a source informed.

The East Coast port is expected to remain calm through the weekend. On Thursday night, northerly winds of 5–10 knots are forecast, with waves of 1–2 feet.

On Tuesday morning, approximately 75 cargo containers fell from the cargo ship Mississippi while docked at Pier G in the Port of Long Beach, California.

The incident temporarily halted terminal operations and is now under investigation by the US Coast Guard and the National Transportation Safety Board.

Meanwhile, the twin ports of Los Angeles and Long Beach have performed better this week, reporting increased bunker inquiries. HSFO and LSMGO are available with recommended lead times of 5–7 days.

VLSFO continues to be in strong demand with recommended lead times of slightly less than a week to avoid spot premium prices.

Over the past 90 days, Los Angeles recorded at least 139 stems in total, while Long Beach logged around 373 stems, according to ENGINE's fuel quality data, which represents approximately 60% of all lab samples worldwide.

In Los Angeles, VLSFO accounted for the largest share with 58 stems, whereas in Long Beach, LSMGO led with about 160 stems.

Latin America and the Caribbean

Fresh HSFO stocks are expected to arrive in Panama over the weekend, a local supplier told ENGINE. HSFO has been tight at the port, with suppliers currently advising lead times of more than a week, though availability is anticipated to improve.

In Balboa and Cristobal, VLSFO and LSMGO are generally available within 4–5 days, with one supplier able to deliver VLSFO in as little as 1–2 days.

Meanwhile, in Colombia, the ports of Cartagena, Santa Marta, and Barranquilla have reported steady availability of both VLSFO and LSMGO, with the earliest deliveries possible in 2-3 days of time.

In Santos, VLSFO remains tight for prompt dates and is subject to enquiry, while LSMGO with 0.1% sulfur is available. At Rio de Janeiro and Rio Grande, both VLSFO and LSMGO are readily available, with recommended lead times of 5–7 days.

In OPL Sepetiba and Salvador in Brazil, the earliest delivery dates for both grades are around 2–3 days. Meanwhile, Paranagua has VLSFO available, while LSMGO is restricted to prompt supply and subject to enquiry.

In Belem/Vila do Conde, both grades are available without reported issues, while at Itaqui, lead times for VLSFO and LSMGO extend to around two weeks.

HSFO remains unavailable across all Brazilian ports.

Bunker fuel demand is strong in Zona Común down south, a local supplier informed. Market conditions and fuel availability have been reported to be normal.

Like Brazil, both VLSFO and LSMGO are available at the anchorage and require around 5–6 days to be delivered.

In Argentina, weather conditions in Bahía Blanca and Zona Común are forecast to remain smooth until Saturday. From late Saturday into the weekend, wind gusts exceeding 20 knots are expected at both locations.

The port will suspend all operations, including bunkering at anchorage and loading in port, if winds exceed 20 knots. This is a port rule, so all suppliers follow it.

"Deliveries that were underway before the winds may still continue if the port allows, but new ones won’t. This can range from a few hours each day to several days in a row," a source said.

By Gautamee Hazarika

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