HSFO availability improves in Houston

VLSFO demand in Panama softens

Itaqui sees extended lead times

IMAGE: Harbour with nautical vessels in Argentina. Getty Images.

North America

In Houston, bunker fuel demand for the three conventional grades has slowed from the end of September into October. The port currently reports good availability across all grades, with suppliers recommending lead times of 3–5 days for VLSFO and LSMGO.

HSFO availability has improved significantly since last week, with expected lead times at 6–7 days.

Meanwhile, the Houston Ship Channel expansion project, called Project 11, authorized in December 2020, has widened the channel to 700 ft from B-18 to Morgans Point, a ship agent informed ENGINE.

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

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

The Atlantic hurricane season is underway, and the National Hurricane Center (NHC) has issued advisories for tropical storm Jerry in the Atlantic and Priscilla and Octave in the Eastern Pacific.

Marine warnings are in effect across the Atlantic, Caribbean/Southwest Atlantic, Southwest North Atlantic, and Eastern Pacific.

In New York, demand for bunker fuel has been strong this week. HSFO availability continues to be very tight at the port, with lead times extending to 8-9 days.

Comparatively, VLSFO and LSMGO have better availability, and suppliers recommend lead times of 3-5 days. The shortest time a supplier can deliver these two grades is within 1-2 days.

From this Thursday through Friday night, winds at New York Harbor will range from 5–20 knots, shifting from northeast to southeast and south, with waves mostly reaching 1–2 feet. Bunkering operations are expected to continue with minimal disruption.

In the West Coast, availability across all fuel grades is normal in Los Angeles and Long Beach, with suppliers recommending lead times of 5-7 days.

Across the United States, starting 14 October, the US will implement new port entry fees targeting vessels that are built, owned, or operated by Chinese entities.

These measures aim to counter China's maritime dominance and support US shipbuilding, the United States Trade Representative (USTR) said.

In Montreal, high wind gusts from 11–13 October could delay bunkering operations. Barge work is limited to daylight hours, which may contribute to anchorage delays, especially during intensified gusts.

Latin America and the Caribbean

In Panama, the VLSFO market has reportedly softened slightly, while demand for the other two grades remains stronger.

In key ports such as Balboa and Cristobal, VLSFO and LSMGO can be delivered within 3–5 days, whereas HSFO requires 4–6 days this week.

"HSFO and LSMGO have had decent enquiries so far this week, with demand for these two better than previous weeks. VLSFO is a bit down, but supplies remain good," a bunker trader told ENGINE.

In Columbia, ports of Cartagena, Santa Marta and Barranquilla have good availability of VLSFO and LSMGO, and they can be delivered within 3-4 days.

In Brazil, fuel availability varies by port. In Santos, which remains typically congested, lead times for VLSFO and LSMGO are around 6–7 days.

Rio de Janeiro reports very tight availability, with the earliest delivery for both grades on 12 October. At OPL Sepetiba and Salvador, availability is also tight, with lead times extending to 8–9 days, and earliest deliveries from 17 October.

Paranaguá currently has only VLSFO, which is tight and requires over a week for delivery. Meanwhile, Rio Grande and Belém/Vila do Conde report normal availability for VLSFO and LSMGO, with lead times of 5–7 days.

In Itaqui, availability has further shrunk, with lead times now at 10–12 days, up from 6–7 days last week, and earliest deliveries for both grades from 19 October.

San Antonio Este in Argentina, is becoming an important port for ships supplying the Vaca Muerta oil and gas fields, handling steel and pipes for one key supplier’s crude oil facilities, Antares Ship Agents informed.

The port can take medium-sized cargo ships up to about 180 meters long, and ongoing construction could lead to more demand for bunker fuel locally.

In Zona Comun VLSFO and LSMGO are reported to have good availability, with lead times unchanged at 5-7 days of lead time. Winds are expected at the anchorage location at 12–14 knots between today and tomorrow, with high wind gusts up to 22 knots.

Bunkering operations may face delays during bouts of rough weather conditions, since they typically suspend if winds blow over 20 knots.

By Gautamee Hazarika

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