Houston bunker demand rebounds

Panama records slump in fuel sales

VLSFO and LSMGO availability tight in Santos

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

North America

In Houston, demand for all three bunker fuel grades has improved after the slowdown seen earlier this month, according to a source.

Availability remains healthy across grades, with suppliers advising lead times of 4–5 days for VLSFO and LSMGO, and around 6–7 days for HSFO.

Fuel availability remains steady at the Galveston Offshore Lightering Area (GOLA), with suppliers able to supply HSFO and LSMGO within 3–4 days, while VLSFO deliveries typically take around 5–6 days.

Weather conditions at the anchorage are expected to stay calm through the week, with no major disruptions anticipated. The hurricane season is nearing its end, concluding on 30 November.

At present, there are no active hurricanes, and no tropical cyclone activity is expected in the Central Pacific or Atlantic regions over the next seven days, according to the National Hurricane Center (NHC).

However, in the Eastern Pacific, south of southern Mexico, a small depression has formed, with a 60% chance of developing into a cyclone within the week.

In New York, HSFO supply conditions have improved, with lead times easing to 5–7 days from 8–9 days the previous week. VLSFO and LSMGO are more readily available, and suppliers suggest booking 3–5 days in advance, though some can deliver within just 1–2 days, a source told ENGINE.

In New York Harbour, a small craft advisory is in effect through this evening as northerly winds of 10–20 knots, with gusts up to 25 knots, bring choppy seas of 2–3 feet.

Conditions are expected to ease slightly by Friday and Saturday, before strengthening again late Sunday when southerly to southwesterly winds of 20–25 knots and gusts up to 30 knots return, along with showers and waves rising to 2–4 feet.

These conditions are not conducive to smooth bunkering operations and can cause delays at the anchorage.

On the US West Coast, fuel availability remains normal in Los Angeles and Long Beach, where suppliers have advised 7-8 days of lead time.

The Port of Los Angeles processed 883,053 TEUs in September, down 7.5% from the same month last year. Overall cargo movement in the first nine months of 2025 was 3% higher than in 2024, amidst the ongoing trade policy shifts and market volatility.

Port officials noted that shifting trade policies and the federal government shutdown have added volatility to global shipping flows.

In Montreal, high wind gusts from 18–21 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, bunker fuel demand has been weak with September marking the lowest sales in this year. Month-on-month, total sales fell 10% compared to August, with VLSFO and LSMGO down 13% and HSFO declining 4% from the previous month.

Availability at the port is normal for VLSFO and LSMGO, with recommended lead times of 3–4 days. HSFO is slightly tight but can be supplied within a week, a source said.

The minimum delivery time for all three grades from a supplier is 1–2 days.

Recently, Panama has reopened the approval process for marine fuel barges, ending a five-year suspension on new licenses for fuel transport and supply via floating equipment.

The move aims to increase transparency and competition in the bunkering market around the strategically important Panama Canal.

In Brazil, fuel availability remains mixed across ports. In Santos, HSFO is unavailable, while VLSFO and LSMGO supply remain congested, with longer lead times of 6-7 days for delivery.

Rio de Janeiro has tight availability for both grades, with earliest deliveries expected around 19 October. At OPL Sepetiba, both VLSFO and LSMGO remain tight, with reloads expected between 17–19 October.

Salvador also shows limited product, with earliest delivery dates for VLSFO and LSMGO on 20 October.

At Paranaguá, VLSFO is available with earliest delivery on 17 October, though LSMGO is not available at the port. Rio Grande reports normal availability for both grades, and suppliers have recommended under 5 days to make delivery.

Belém/Vila do Conde, both VLSFO and LSMGO have normal availability with recommended lead times of under a week. In Itaqui, VLSFO and LSMGO supply remain steady, with earliest deliveries expected around 22 October.

Maintenance dredging of the Martin Garcia Canal in the River Plate is currently underway, with a tender for ongoing work expected at the end of October.

“Plans to deepen and widen the canal, benefiting ports near Nueva Palmira, are set for early 2026. The stony riverbed makes dredging tougher but helps keep sediment levels lower, which could support more reliable vessel access for bunkering,” a ship agent told ENGINE.

In Argentina’s Zona Comun, VLSFO and LSMGO have good availability, which can be delivered via barges. There are 4-5 barges currently in operation, and suppliers have recommended lead times of 5-6 days this week. 

The anchorage, usually susceptible to weather-related bunkering disruptions, is currently experiencing calm conditions with winds of 5–8 knots and mostly sunny skies.

Rough weather is expected to impact the area early tomorrow morning, easing by the afternoon, which may cause brief delays in bunkering operations, with similar conditions expected to persist through 21 October.

By Gautamee Hazarika

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