ENGINE: Americas Bunker Fuel Availability Outlook

North American bunker fuel supplies are currently steady in Houston, according to a regional trader. Heavy fuel oil (HSFO) and medium fuel oil (MSGO) availability remains normal, while some suppliers are facing tight spots with vacuum fuel oil (VLSFO). Recommended lead times for HSFO and MSGO are 5-7 days, and deliveries of VLSFO can be arranged with around seven days’ notice.

The US Gulf Coast is entering its sea fog season, which could cause delays and disruptions at the port due to dense fog that may cut visibility on the lower Houston Ship Channel and Galveston Bay, particularly in the early mornings. Mobile Bay faces the highest risk of sea fog this week, with high visibility threats on Thursday and Friday.

Brownsville and Corpus Christi are also expected to face high visibility risks on Sunday. In contrast, ports such as Galveston, Port Arthur, Lake Charles, Marsh Island, Port Fourchon, New Orleans, and Venice have low risk levels.

At the Galveston Offshore Lightering Area (GOLA), prompt bunker availability is tight, and deliveries are made on a first-come, first-served basis, contingent on weather conditions. High wind gusts of up to 23 knots and waves of up to 1.1 meters are forecast for Saturday. Despite high bunker demand in New York, all three conventional fuel grades are well-supplied, with no severe tight spots reported.

Recommended lead times for VLSFO and MSGO are 2-4 days, while HSFO can be delivered with approximately five days’ notice. Distillate supply, which includes MSGO, is anticipated to tighten at New York towards the end of the year and remain short until early next year.

In Los Angeles and Long Beach, bunker demand has been strong, even though HSFO, VLSFO, and MSGO are priced at premiums compared to Houston and New York. VLSFO and HSFO are available with lead times of 5-8 days, while MSGO can be delivered in less than five days. A recent feasibility study predicts that annual methanol bunker demand in Los Angeles and Long Beach could reach 64,000-250,000 metric tons by 2030, with the ports planning to invite proposals for alternative fuel bunker demonstrations by the end of this year.

In Canada’s Vancouver, bunker demand is steady, with all three grades available with lead times of 4-8 days. In Latin America and the Caribbean, VLSFO and MSGO availability is good in Panama’s Balboa and Cristobal, with lead times of 3-5 days. HSFO, however, is tight, often requiring lead times of over a week or up to 10 days. A new bunker supplier is expected to enter the Panama market next month, increasing competition and offering buyers more supply options.

Thunderstorms could disrupt bunker deliveries at Balboa until Saturday, with high wind gusts and thunderstorms forecast. At St. Eustatius, deliveries are made at anchorage, where barges could face delays, and cruise ships get priority. Buyers interested in HSFO in Colombian ports like Cartagena, Santa Marta, and Barranquilla should consult suppliers, as the grade is tight.

In Peruvian Callao, bunker supplies are tight for HSFO, with only a few suppliers offering it. VLSFO and MSGO are available with lead times of 4-7 days, depending on stem size. In Brazil, Santos has normal VLSFO and MSGO availability with lead times of 4-7 days. Rio de Janeiro can supply all three grades, but HSFO is currently tight, requiring buyers to check with suppliers before ordering.

Paranagua, Belem, and Vila do Conde have good availability for VLSFO and MSGO with lead times under five days. Rio Grande lacks LSMGO supply for prompt delivery. Bunker availability remains tight in Argentina’s Zona Comun anchorage, with HSFO and MSGO requiring lead times of over a week or up to 10 days due to high wind gusts forecast.