Business

ENGINE: Americas Bunker Fuel Availability Outlook

LSMGO limited on East Coast amid dwindling stocks; US fuel oil stocks steady from April; prompt availability tight in Panama and Argentina.

Published

3 years ago

May 13, 2022

Admin

Resized Americas Bunker Fuel Availability Outlook image for Manifold Times

The following article regarding bunker fuel availability in the Americas region has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

12 May, 2022

LSMGO limited on East Coast amid dwindling stocks
US fuel oil stocks steady from April
Prompt availability tight in Panama and Argentina

LSMGO is particularly tight in New York and other East Coast ports amid dwindling stock levels and relentless pressure on the middle distillate pool. East Coast distillate inventories have slumped to 14-year lows, according to official EIA data. New York’s LSMGO price has shot up to premiums of around $300-400/mt over Houston, Los Angeles and Balboa.

US sanctions on Russian oil, and European self-sanctioning in the absence of any EU-wide ban, has contributed to tighten trans-Atlantic supply of middle distillates, which include diesel, jet fuel, heating oil and gasoil. High domestic US demand has added additional pressure.

US fuel oil inventories grew gradually from a December low to April, and have held steady into May, EIA figures show. April’s stock build was supported by an import influx, allowing for more to be supplied out to bulk terminals, blenders, power plants and for further refining.

Gulf Coast stocks have come down by 4% in so far May compared to April’s average, despite a near three-quarter rise in production levels. East Coast stocks are up by a marginal 1% amid a third higher production. West Coast stocks have grown by 17% with support from a quarter more production.

HSFO is tight for prompt dates across key Americas ports, including Houston, New York, Los Angeles and Long Beach, and in Panama. A supplier in Balboa can deliver in six days.

All grades have been in tight availability for prompt dates in Panama. Two suppliers’ earliest delivery dates in Balboa are 6-9 days out. Another supplier has limited VLSFO and LSMGO availability for dates a week out in Colon.

A supplier in Jamaica’s Kingston has had tight availability of VLSFO and LSMGO in this week, while two others can deliver prompt.

Prompt supply is tight with certain suppliers in Zona Comun, one with its earliest delivery date around eight days out. Two others can supply in 5-7 days. The Argentinian anchorage location is forecast with strong winds from Sunday to Tuesday next week, which could disrupt bunker deliveries.

There is still no VLSFO or LSMGO available in nearby Montevideo, but truck or barge supply of LSMGO could come back on offer later this month, a source says.

Photo credit and source: ENGINE
Published: 13 May, 2022

LNG Bunkering

China: Ningbo Zhoushan Port completes first LNG bunkering operation for 2025

Bunkering vessel “Hai Yang Shi You 302” supplied more than 10,000 cubic metres of LNG bunker fuel to containership “MSC Adya” at the Ningbo-Zhoushan Port port on 5 January.

Published

3 days ago

January 10, 2025

Admin

China: Ningbo Zhoushan Port completes first LNG bunkering operation for 2025

Zhejiang Pilot Free Trade Zone Zhoushan Area on Wednesday (8 January) said Ningbo-Zhoushan Port successfully completed its first LNG bunkering operation for the year.

Bunkering vessel Hai Yang Shi You 302 supplied more than 10,000 cubic metres (m3) of LNG bunker fuel to containership MSC Adya at the port on 5 January.

Zhejiang Seaport International Trading, the bunker supplier for the operation, successfully obtained the Zhoushan Anchorage LNG bunkering licence in June 2024, extending refuelling services from dock to sea.

The company’s services cover Meishan, Chuanshan, Daxie and other port areas.

As China's first river-sea LNG transport and bunkering ship, Hai Yang Shi You is currently placed permanently at Ningbo Zhoushan Port, providing a variety of bunkering methods such as ship-to-ship and ship-to-shore.

Zhejiang Seaport International Trading will continue to expand the scope of bonded LNG bunkering operations and new alternative fuels such as green methanol, ammonia and biofuels in the Zhoushan Area.

Photo credit: Zhejiang Pilot Free Trade Zone Zhoushan Area
Published: 10 January, 2025

Business

Shandong Port Group bans US-sanctioned tankers from entering its ports

Group has prohibited ports to dock, unload or provide ship services to vessels on the Office of Foreign Control list managed by the US Department, according to a Reuters news report.

Published

3 days ago

January 10, 2025

Admin

Shandong Port Group bans US-sanctioned tankers from entering its ports

China’s Shandong Port Group has reportedly blocked tankers affected by US sanctions from entering its ports, according to an exclusive news report by Reuters on Wednesday (8 January).

Citing a notice from the port, which was issued on 6 January and shared to Reuters by traders, the Group has prohibited ports to dock, unload or provide ship services to vessels on the Office of Foreign Control list managed by the US Department.

In another notice released on 7 January, the ban came after sanctioned tanker Eliza II unloaded at Yantai Port in early January.

Shandong Port operates major ports on the east coast of China including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

The traders said the ban could slow imports into China, the world’s largest oil importing nation, and increase shipping costs.

Photo credit: Shandong Port Group
Published: 10 January, 2025

Business

US DoD designates COSCO Shipping and CNOOC as ‘Chinese military companies’

COSCO Shipping has responded that the company and its subsidiaries ‘have consistently adhered to local laws and regulations, maintaining strict compliance in all international operations’.

Published

3 days ago

January 10, 2025

Admin

China: Cosco Shipping and bp to explore collaboration into methanol bunker fuel

The US Department of Defense (DoD) on Tuesday (7 January) has added China’s state-owned shipping company COSCO Shipping and two of its subsidiaries to its list of companies for allegedly having links to the Chinese military.

The subsidiaries are COSCO SHIPPING (North America) and COSCO SHIPPING Finance.

DoD released the update to the names of "Chinese military companies" operating directly or indirectly in the United States in accordance with the statutory requirement of Section 1260H of the National Defense Authorisation Act for Fiscal Year 2021. The Department said it will update the list with additional entities as appropriate.

Updating the Section 1260H list of "Chinese military companies" is an important continuing effort in highlighting and countering the People’s Republic of China's (PRC) Military-Civil Fusion strategy, DOD added.

The list also included other Chinese shipping-related companies such as shipbuilders China Shipbuilding Trading and China State Shipbuilding Corporation, oil company China National Offshore Oil Corporation (CNOOC), CNOOC China and CNOOC International Trading.

Shipping container manufacturer China International Marine Containers (CIMC) was also included on the list of companies.

In a response to the move, COSCO Shipping said it has noted the recent inclusion of the company and its subsidiaries to the sanctions list.

“COSCO Shipping and its subsidiaries have consistently adhered to local laws and regulations, maintaining strict compliance in all international operations,” it said on its website.

“We remain committed to facilitating global trade and providing high-quality commercial shipping and logistics services to clients worldwide, including agricultural producers, manufacturers, energy firms, retailers, and exporters in the United States.”

“We emphasise that none of the aforementioned companies are ‘Chinese military companies’. We will engage with U.S. authorities to clarify this matter. This designation does not impose sanctions or export controls, and our global operations will continue uninterrupted.”

Photo credit: COSCO Shipping
Published: 10 January, 2025