The ENGINE report on Americas Fuel Availability Outlook reveals current trends in bunker demand across North America and Latin America. In North America, particularly in Houston, bunker demand is sluggish across all fuel grades, with low spot premiums noted this week.
Over the last 24 hours, 75 vessels have arrived at the port, with 134 more scheduled in the next 30 days. Very Low Sulfur Fuel Oil (VLSFO) and Low Sulfur Marine Gas Oil (LSMGO) are readily available via pipeline for prompt delivery, with recommended lead times of 3 to 5 days.
However, High Sulfur Fuel Oil (HSFO) is only accessible via barge and requires terminal approval, leading to longer lead times of 7 to 10 days. As the hurricane season is underway, conditions are likely to worsen in the weeks ahead.
Additionally, pilot restrictions in Galveston are causing operational adjustments. Vessels over 120,000 deadweight tonnage can only operate during daylight hours, and a second pilot is mandatory for nighttime movements.
Meanwhile, in New York, bunker demand from container liners remains stable, and all fuel grades are available for delivery with similar lead times. Nevertheless, predicted high wind gusts between June 5-8 might affect operations intermittently.
In Latin America, Panama’s market remains quiet with limited HSFO supply. Deliveries prioritize vessels with confirmed transit schedules through the Panama Canal, where drought conditions are causing transit delays.
The Bahamas’ Freeport faces potential delivery disruptions due to high winds, while St. Eustatius has similar conditions but with no congestion reported. Argentina’s Bahia Blanca is seeing significant improvements in bunkering capacity with a new berth under construction at Oiltanking’s terminal, which plays a crucial role in crude oil exports.
Conversely, in Brazil and Colombia, bunker availability is stable, with ports reporting manageable lead times for VLSFO and LSMGO deliveries.