North America

Bunker demand was buoyant in Houston this week following a period of subdued demand over the last couple of weeks. Availability of both VLSFO and LSMGO has tightened slightly in the Houston area, with some suppliers now requiring lead times of more than seven days for delivery.

On Wednesday, a VLSFO stem was fixed in Houston at $754/mt, marking a premium of over $50/mt compared to New York’s VLSFO price.

Prompt HSFO supply is also constrained, and recommended lead times are 8-9 days for this grade.

This tight availability may be influenced by various factors, such as storms in Houston last week, and there is optimism that clearer weather will improve availability from next week, a source says.

Prompt supply of VLSFO and LSMGO is possible in Bolivar Roads and Beaumont. One supplier is able to offer VLSFO and LSMGO stems within three days of lead time in Bolivar Roads. In Port Arthur, a longer lead time of around 6-8 days is recommended for both fuel grades.

There has been an uptick in bunker enquiries in Nederland this week, and one supplier is unable to offer stems for prompt dates.

Bunker deliveries have been halted in the Galveston Offshore Lightering Area (GOLA) since Tuesday, where weather conditions are rough. GOLA is currently experiencing gale-force wind gusts of 44 knots. Calmer weather is forecast from Thursday evening onwards and could allow bunker operations to resume at the anchorage.

Prompt VLSFO and LSMGO can be secured in GOLA with a few suppliers, but deliveries are subject to weather conditions, a source says.

Strong demand persists at the West Coast ports of Long Beach and Los Angeles, leading to tighter availability of all fuel grades for prompt dates. Two suppliers are unable to deliver VLSFO and LSMGO stems with six days of lead time.

HSFO availability is limited in San Francisco, where one supplier offers stems with a lead time of approximately two weeks.

Bunker demand in New York has been robust amid the ongoing suspension of all vessel traffic in and out of Baltimore. However, there was a demand decrease reported in other East Coast ports such as Newport News and Philadelphia this week.

The US Army Corps of Engineers (USACE) announced plans to open a limited-access channel in Baltimore by the end of April to allow for container barges to move in and out of the port.

Caribbean and Latin America

Demand has been good in Panamanian ports with more daily transits through the Panama Canal. Availability has also remained good for prompt dates in both Balboa and Cristobal.

The Panama Canal Authority (ACP) is considering easing transit restrictions due to optimistic weather forecasts, aiming for full normalisation by next year. Recent developments have given cause for optimism, such as the canal authority adding three extra daily transit slots and Maersk resuming canal transits.

Bunker operations have been suspended by rough weather at Argentina’s Zona Comun anchorage. The weather is forecast to remain rough throughout this week, with wind speeds forecast to touch 44 knots on Sunday. No bunker backlog has been reported as demand is low.

Demand has stayed low in certain Brazilian, yet availability can be tight. The earliest delivery date with one supplier in Santos is 16 April, and 21 April in Rio Grande, a source says.

Source: ENGINE