North America

Hurricane Francine, which made landfall in Louisiana as a Category 2 storm on Wednesday evening, has weakened to a tropical storm, the US National Hurricane Center (NHC) reported.

Despite the downgrade, flash flooding remains a major threat in the New Orleans area, which received 6 to 8 inches of rain.
Key Louisiana ports, including New Orleans, Mobile, and Port Fourchon, were closed on Thursday. In Texas, ports like Houston and Beaumont lifted restrictions on Wednesday after being closed for a day. Post-storm assessments are underway at other locations like Brownsville and Orange.
Bunkering operations in the Galveston Offshore Lightering Area (GOLA) resumed on Thursday after being suspended for nearly two weeks due to strong wind gusts. Most suppliers are working to clear bunker backlogs.

Securing VLSFO and LSMGO stems for both prompt and non-prompt delivery dates is difficult in GOLA. Some suppliers are unable to provide a definitive timeline for when they will be able to offer stems.

Demand in the West Coast port of Los Angeles has picked up this week. Securing prompt VLSFO and LSMGO stems can be difficult in Los Angeles. A lead time of more than seven days is generally recommended in the port, a source says.

VLSFO and LSMGO availability is normal in the East Coast port of New York. Overall, bunker demand has been slow in New York so far this week.

Caribbean and Latin America

Bunker fuel demand has been good in Panama’s Balboa and Cristobal. Product availability is also good in both locations, and several suppliers can supply all fuel grades with a lead time of 5-7 days. However, all fuel grades in Cristobal are priced higher compared to Balboa’s, a source says.

The Panama Canal is handling 36 transits per day in September as the water level at Gatún Lake has increased after recent rainfall. The lake supplies water used for the canal’s locks. The transit number has inched closer to the maximum capacity of 40 daily transits.

The demand for bunker fuel in Zona Comun has dropped significantly, primarily due to a slowdown in exports of agricultural commodities. Most vessels bunkering in the region are engaged in the transportation of agricultural commodities.

However, grain prices have fallen due to surplus production in countries like Brazil and the US. In response, Argentinian farmers are holding off on sales, waiting for prices to improve. This has led to a reduction in overall cargo activity, which has lowered bunker fuel demand in Zona Comun. The oversupply of bunker fuel is now driving prices down in the anchorage.

A supplier in Brazil continues to price its VLSFO stems at a lower rate in the ports of Vila do Conde and Rio de Janeiro, which is putting pressure on competitors, who are struggling to compete with the lower prices, sources say.

Source: ENGINE