Shipping

Panama Canal Transit Changes Impact Bunker Fuel Sales

The Panama Canal Authority had increased daily transits from 27 in May to 32 in June to both boost transit fee revenue and ease shipping delays. However, despite more ships passing through Balboa and Cristobal, shorter waiting times meant vessels required smaller amounts of bunker fuel, impacting overall sales volumes.

"The vessels are not waiting for a long time between their arrival and their transit time, which causes a decrease in bunker delivery," noted an operations manager at Waterfront Maritime Services.

Typically, extended waits at transit points compel ships to consume more fuel running auxiliary engines and generators. In May, average waiting times were 3.8 days, reducing significantly to 1.5 days in June, as per Panama Canal Authority data. This decrease theoretically could reduce fuel consumption during waits by approximately 13,000 metric tons.

The Panama Canal Authority's introduction of an auction system in November aimed to manage demand and allocate transit slots efficiently. However, this system, while generating revenue, has added costs and uncertainty for shipping firms, affecting the number of vessels able to secure transit slots.

"While the number of ships calling for bunkering has increased, complexities and costs associated with booking transit slots have impacted overall fuel purchases," explained a senior operations manager at C Fernie ship agents.

Global bunker supplier Monjasa responded to these changes by redeploying assets, noting, "We believe that [the bunker sales] figures are primarily due to seasonality and adapting to increased Canal transits over time since new trade patterns have been established."

These adjustments underscore ongoing shifts in maritime logistics and fuel dynamics influenced by operational changes at the Panama Canal.