September bunker sales in Panama rise 11.22% on year

Marine fuel sales in Panama reached their highest volume for any September since 2020, data from the Panama Maritime Authority showed, supported by a stronger year-on-year performance in both high sulfur and very low sulfur bunker grades.

As the traditional peak season for the Latin American hub approaches, total bunker sales jumped to 427,644 metric tons, 11.2% higher than the 384,515 t sold in September 2023, but 6.4% lower than in August. The year-on-year increase was the strongest for any month since August 2022.

Sales of very low sulfur fuel oil, with up to 0.5% sulfur content, reached 267,115 t in September, their highest number this year. The volume was up 1.1% from August but 7.2% from September 2023. Besides VLSFO, bunker sales in Panama include high sulfur IFO 380 and marine gasoil.

The data, published Oct. 14, was released as the Panama Canal Authority reported operational improvements in fiscal year 2024 during the New York Maritime Forum in New York.

Ricaurte Vasquez Morales, the Panama Canal administrator, said during the New York forum that compared to FY 2023, the Canal saw a 1% reduction in transit times, or 0.89 hours, from when the ship arrives at the first lock until it exits the last one, according to a statement published Oct. 15 by the Canal Authority.

Vasquez Morales also highlighted a 4% reduction in time spent in the waters of the Canal and a 5% reduction in water usage per transit for Neopanamax vessels.

The fiscal year -- from October 2023 to September 2024 -- includes a period of reduced transits and draft restrictions due to a severe drought in the country. Bookings to transit the canal were gradually reduced to 25 ships/day in November and a minimum of 17 in February, but recovered to a typical 34-36 vessels/d in August this year.

High sulfur bunker retreats

The data showed some weakness in demand for the HSFO bunker grade, which declined in September to 117,498 t, down 21.7% from August. However, sales were still 22.94% above the 95,571 t registered in the same month last year.

HSFO bunker sales comprised 27.5% of total sales in September, while sales of VLSFO encompassed 62.5%.

Sales of marine gasoil, including low sulfur marine gasoil, totaled 43,031 t in September, up 0.6% month on month, but 8% higher than in September last year.

Platts, part of S&P Global Commodity Insights, assessed VLSFO in Balboa, on the Pacific Coast of Panama, at $566/t on Oct. 15, and HS IFO 380 at $478/t. Platts assessed MGO at $718/t.

From January to September, bunker sales in Panama of all grades totaled 3.605 million metric tons, compared with 3.697 MMt in the same period last year.