Panama June bunker sales up slightly

Panama's June bunker sales rose by 0.7pc from a year earlier to 385,716 metric tonnes (t) but were down from May, according to the Panama Canal Authority (ACP).

The higher June sales were driven by strong high-sulphur fuel oil (HSFO) demand, which rose by 64pc to 109,457t. HSFO sales in January-June 2024 are up 31pc to 639,191t compared to the same months in 2023.

Lower prices compared with competing ports and more vessels fitted with scrubbers coming online are likely leading to the increased HSFO demand in Panama.

The Panama HSFO June monthly average price was $470/t, the lowest in the region. La Libertad, Ecuador, had the second-lowest HSFO monthly average price last month at $517/t.

Panama June sales fell from May on weaker very low-sulphur fuel oil (VLSFO) and marine gasoil (MGO) buying interest. VLSFO sales totaled 235,534t in June, 3.7pc lower than May 2024. MGO sales also fell by 1.8pc in June to 40,725t.

The Panama VLSFO June monthly average was assessed the lowest in Latin America at $593/t, a $15/t discount to the second lowest in the region, which was Buenos Aires at $608/t.

For MGO, Cartagena, Colombia, had the lowest monthly average price in June at $703/t. Panama MGO averaged $772/t the same month and buyers may have shifted interest away from Panama looking for lower MGO prices.

June saw the highest number of vessels pass through the Panama Canal so far this year as the ACP has been increasing daily transit limits during Panama's rainy season.

A total of 516 ships traveled through the Canal in June, the most since November 2023. The ACP boosted its daily transit limit to 32 ships/d since 16 May, and added one additional slot to 33 ships/d that began on 11 July. It also increased the maximum vessel draft to 45 feet starting on 15 June, which will enable bigger ships to pass through the Canal.

The ACP will add one additional transit slot on 22 July and 5 August, which will bring transit capacity to 35 ships/d.

By Luis Gronda