Business

ENGINE: Americas Bunker Fuel Availability Outlook

Barge operator ups fuel surcharges on East Coast; lingering gasoil tightness supports New York prices;
West Coast fuel oil tight amid refinery constraints.

Published

3 years ago

June 10, 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:

9 June 2022

Barge operator ups fuel surcharges on East Coast
Lingering gasoil tightness supports New York prices
West Coast fuel oil tight amid refinery constraints

North America

Prompt VLSFO and LSMGO has been tight with some suppliers in Houston this week, pushing their earliest delivery dates further ahead to 4-5 days. One supplier’s earliest delivery date for LSMGO is six days out.

Tight gasoil supply on the US East Coast continues to prop up New York’s LSMGO price, which still hovers well over $100/mt above levels in Houston and Balboa.

A barge operator on the East Coast hiked fuel surcharges to 72% from 1 June, following a previous increase to 51% from 1 April. This means that 72% of the cost of fuel is now added on top to cover barging costs in New York, Philadelphia and other ports covered by the operator.

VLSFO availability looks tight in Los Angeles and Long Beach for the rest of the month, a source says. There are some openings, but availability is patchy and it is hard to estimate when the earliest delivery date is.

HSFO is currently unavailable with one supplier in Los Angeles. It can be sourced but delivery dates beyond 24 June now look more likely, a source says.

Fuel oil supply has been under pressure on the US West Coast. A 10-week strike of 500 steelworkers at the 257,000 b/d capacity Richmond refinery had left refinery managers and contract workers to run operations until the strike ended and steelworkers gradually started returning to the refinery this month.

The refinery is scheduled for a crude distillation unit (CDU) maintenance between 15 June and 31 July, according to Wood Mackenzie, which could continue to take some production capacity out of the market and keep supply tight.

Another refinery in the region, the 166,000 b/d capacity refinery in Torrance has been undergoing a CDU maintenance since 18 May, which is scheduled to end on 2 July.

Latin America

VLSFO has tightened considerably in Panama, pushing Cristobal and Balboa’s prices far above Houston’s.

A supplier in Panama has limited availability for deliveries of all grades, even into the second half of June. Its earliest delivery date is 11 days out. Another can deliver VLSFO with seven days of lead time in Balboa and five days in Cristobal.

Prompt VLSFO availability has also become tighter in Zona Comun. A supplier there needs seven days of lead time. Another supplier can deliver from six days onwards.

VLSFO is tight for prompt dates in Santos, with the earliest delivery around eight days out.

Photo credit: ENGINE
Published: 10 June, 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