Business

ENGINE: Americas Bunker Fuel Availability Outlook

Bunker supply improves in Houston area; bad weather still disrupting GOLA bunkering; VLSFO and LSMGO supply normal in Zona Comun.

Published

2 years ago

February 10, 2023

Admin

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:

Bunker supply improves in Houston area
Bad weather still disrupting GOLA bunkering
VLSFO and LSMGO supply normal in Zona Comun

North America

VLSFO and LSMGO availability has improved in the Houston area and bunker locations off the US Gulf Coast. A lead time of 3-5 days is generally recommended, down from last week’s 5-8 days.

But securing stems for very prompt dates (0-3 days) can be harder in Houston as some suppliers have packed delivery schedules, a source says. Demand for prompt stems has been slower this week, while many buyers have been rushing to secure bunkers for dates further out.

On 28 January, Valero’s 255,000 b/d nameplate capacity Houston refinery started a 35-day turnaround period for four processing units, according to market intelligence provider Industrial Info Resources (IIR). The refinery produces bunker fuels, ultra-low sulphur diesel, gasoline and other products.

Valero was unable to comment on the refinery maintenance when ENGINE reached out to. However, sources have informed that Valero has been offering VLSFO and LSMGO grades as normal in the Houston bunker market in recent days, a source said.

VLSFO and LSMGO availability is said to be normal in the East Coast port of New York. Recommended lead times are about four days for both grades.

Rough weather continues to disrupt bunkering in the Galveston Offshore Lightering Area (GOLA). Most suppliers have pulled back prompt offers due to intermittent bad weather conditions, a trader says.

GOLA is currently experiencing wind gusts of 25 knots, with winds forecasted to intensify to gale-force on Friday and Saturday.

All grades remain tight for prompt delivery dates in the West Coast ports of Long Beach and Los Angeles. A long lead time of at least 10-12 days is generally recommended for VLSFO and LSMGO. But some suppliers can supply LSMGO stems of 500 mt or less in Long Beach with shorter lead times.

Bunker fuel availability remains normal in Mexico’s Manzanillo. Recommended lead times are about five days for HSFO, VLSFO and LSMGO.

Caribbean and Latin America

Securing VLSFO and LSMGO for very prompt dates (0-3 days) can be possible in Panama’s Balboa and Cristobal, but these offers are generally quoted on a subject to enquiry basis, a source says. However, securing larger quantities of 500 mt or above can be difficult on a very prompt basis.

Certain suppliers can deliver VLSFO stems in Balboa with lead times of 6-7 days, while LSMGO stems can be delivered within three days. Another supplier's earliest delivery date is 13 days out in Balboa. And yet another will need a lead time of four days to deliver in Cristobal.

The low sulphur grades are also tight with a supplier in Jamaica's Kingston, which has its earliest delivery date 11-12 days out.

VLSFO and LSMGO availability is normal for deliveries in Trinidad. Very prompt deliveries with a lead time of 2-3 days are possible in the port.

Availability is also normal for deliveries at Argentina’s Zona Comun anchorage. One supplier requires four days of lead time to deliver VLSFO and LSMGO stems. However, strong wind gusts are forecast in Zona Comun and could disrupt bunker deliveries over the weekend.

By Nithin Chandran and Debarati Bhattacharjee

Photo credit and source: ENGINE
Published: 10 February, 2023

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