- September bunker sales in Panama increased by 11.2% year-on-year, reaching their highest level since 2020.
- Very low sulfur fuel oil (VLSFO) sales reached their highest number of 2023.
- Operational improvements in the Panama Canal contributed to enhanced transit times and reduced water usage during FY 2024.
Marine fuel sales in Panama surged in September 2024, reaching their highest volume for September since 2020. Total sales increased by 11.22% year-on-year, totaling 427,644 metric tons, although this represented a 6.4% decrease compared to August, reports SP Global.
Strong Performance in Very Low Sulfur Fuel Oil
Sales of very low sulfur fuel oil (VLSFO), with up to 0.5% sulfur content, hit 267,115 metric tons in September 2024.
This marked the highest volume for 2023 with a 1.1% increase from August and a 7.2% rise from September 2023. VLSFO remains a significant contributor to Panama’s bunker market.
Decline in High Sulfur Bunker Sales
Sales of high-sulfur fuel oil (HSFO) declined 21.7% compared to August 2024, reaching 117,498 metric tons.
However, HSFO sales remained 22.94% above September 2023, reflecting ongoing demand despite market fluctuations.
Marine Gasoil Sales See Steady Growth
Marine gasoil (MGO), including low sulfur MGO, showed steady growth, with sales rising to 43,031 metric tons in September 2024.
This represented a 0.6% increase from August and an 8% year-on-year increase from September 2023.
Panama Canal Operational Improvements in FY 2024
The Panama Canal Authority reported significant operational improvements in FY 2024.
Transit times were reduced by 1% (equivalent to 0.89 hours), and water usage per transit was lowered by 5% for Neopanamax vessels, despite drought-induced transit restrictions earlier in the year.
Recovering Canal Traffic After Drought Restrictions
Although drought conditions had led to a reduction in transits and draft restrictions, the number of ships passing through the Panama Canal recovered to the typical 34-36 vessels/day by August 2024, up from a low of 17 ships/day in February.
In September, HSFO sales accounted for 27.5% of total bunker sales, while VLSFO sales made up 62.5%. Despite a month-on-month decline, HSFO demand remained higher than in September 2023, highlighting its ongoing role in the global fuel market.
Price Assessments of Bunker Fuels in Panama
As of October 15, Platts assessed the price of VLSFO in Balboa at $566 per ton, while HS IFO 380 was priced at $478 per ton.
Marine gasoil (MGO) was assessed at $718 per ton, reflecting the current market conditions.
Year-to-Date Bunker Sales Data
From January to September 2024, Panama’s total bunker sales reached 3.605 million metric tons, slightly down from the 3.697 MMt sold during the same period in 2023.
This shows a relatively stable performance in Panama’s bunker market despite global challenges.
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Source: SP Global
