Americas Fuel Availability Outlook
In North America, the fuel market in Houston is witnessing robust demand, with both High Sulfur Fuel Oil (HSFO) and Very Low Sulfur Fuel Oil (VLSFO) readily accessible. Suppliers are advising lead times of around seven days for these fuels. However, the supply of Low Sulfur Marine Gas Oil (LSMGO) remains constrained, with lead times extending to 7-10 days.
The operational conditions at the port are stable, although there have been instances of fog during the nights and early mornings. A source mentioned that recent weather has not caused any significant disruptions. Demand across North America has seen a slight dip compared to the previous week, although bookings continue to be secured.
In New York, HSFO demand is robust due to ample supply, while VLSFO interest remains lower. Lead times differ, with VLSFO and LSMGO at 3-5 days, while HSFO requires longer wait periods. On the West Coast, the Port of Los Angeles is noticing reduced demand, yet bunker fuel availability is stable with typical lead times under a week.
The decline in vessel arrivals and import volumes has been attributed to rising US-China trade tensions, resulting in Hapag-Lloyd cutting 30% of its shipments from China. In the Caribbean and Latin America, the situation is varied. Panama’s ports of Balboa and Cristobal have seen subdued market activity recently, but bunker fuel remains accessible with lead times under a week.
Conversely, in Argentina, supply is tightening in Zona Comun due to increased congestion from two major suppliers undergoing maintenance. This has led to reliance on Yacimientos Petrolíferos Fiscales and World Fuel Services for bunker deliveries. Brazil’s fuel availability has been consistent, with recommended lead times of 5-7 days, while the Colombian ports of Santa Marta, Barranquilla, and Cartagena report prompt availability across all fuel grades with lead times of 2-3 days.