Panama Bunker Sales Rebound in July
Key Takeaways
- •Panama's total bunker fuel sales increased 11% month on month in July to 428,000 mt, according to preliminary Panama Maritime Authority data.
- •VLSFO sales rose approximately 13% to 278,000 mt, remaining the top-selling grade with about 65% of total bunker volumes.
- •Daily average bunker sales climbed to roughly 13,800 mt/day in July, up from about 12,800 mt/day in June.
- •Bunker calls rose to 629 ships in July from 545 in June, although the average stem size declined to around 680 mt from 707 mt.
- •A trader reported that bunker demand has weakened in recent weeks, and August data will indicate whether the July recovery holds.
Panama's bunker fuel sales rebounded in July, with sales of VLSFO and LSMGO increasing on both a total and a daily average basis, according to preliminary data from the Panama Maritime Authority.
Panama is the largest bunker market in the Americas, with deliveries concentrated at Balboa on the Pacific side and Cristobal on the Atlantic side, at either entrance to the Panama Canal. Its monthly sales volumes are closely watched as a gauge of shipping activity around one of the world's key trade routes, and the authority's figures are preliminary and subject to revision.
Total bunker sales rose 11% in July from June. The month-on-month changes were as follows:
- Total sales: up 43,000 mt to 428,000 mt
- VLSFO sales: up 31,000 mt to 278,000 mt
- LSMGO sales: up 100 mt to 36,000 mt
- HSFO sales: up 11,000 mt to 106,000 mt
- 0.5% MGO sales: up 2,000 mt to 8,000 mt
VLSFO sales increased by around 13% from June, while HSFO sales rose by approximately 11% month-on-month. Total MGO sales gained about 6%, with LSMGO volumes edging up by less than 1%.
On a daily basis, total bunker sales averaged about 13,800 mt/day in July, compared with around 12,800 mt/day in June.
Port activity also picked up over the month. A total of 629 ships called at Panama's ports for bunkers in July, up from 545 in June, while the number of barges operating increased to 32 from 30. The average stem size, however, declined to around 680 mt in July, from 707 mt the previous month.
By fuel grade, VLSFO retained its position as Panama's most widely sold bunker fuel in July, accounting for approximately 65% of total bunker sales. HSFO represented around 25% of total sales, while total MGO volumes made up about 10% of overall bunker sales. VLSFO is capped at 0.5% sulphur under the IMO 2020 global sulphur limit that took effect in January 2020, while HSFO, with sulphur content above that threshold, can be burned only by ships fitted with exhaust gas cleaning systems, commonly known as scrubbers. MGO grades are distillate fuels.
In Panama, bunker demand has dropped compared with the past few weeks, a trader said. On the supply side, Balboa and Cristobal report steady availability, with all three fuel grades of HSFO, VLSFO and LSMGO requiring 5–7 days of lead time. The August data will show whether the July recovery holds.
Source: By Gautamee Hazarika, ENGINE,
