BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry



« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa


BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News





Monjasa: Five insights on how the Panama Canal expansion affects the local bunker industry

01 Jul 2016 07:33 GMT

Sales volumes, post-transit deliveries, east coast voyages, Caribbean ports and compliance are examined.



Source: Monjasa

In recent years, the total volume of the Panama bunker market has increased as price levels are becoming increasingly competitive to US bunker hubs like Houston, New Orleans, and NYC.

In 2015, reports indicate that approx. 5 percent of the global trade passes through the Panama Canal. And, in the light of this weekend’s historic opening of the new Panama locks, this percentage is expected to grow in the coming years.

An increased number of Post-Panamax container ships, Capesize dry cargo vessels and specialised large scale gas carriers are soon expected to pass through the new Panama locks.

In dry figures, the new locks provide capacity to handle vesels up to 49 meters wide, 366 meters long and 15 meters deep. Furthermore, vessels may go from 5,000 TEU to 13,000/14,000 TEU.

But what does this shift in maritime shipping mean to the bunker industry?

Being physically on site in Panama itself, Monjasa is one of the few globally oriented bunker companies with actual hands-on experience in the Panama market. Monjasa therefore provides five insights on the effects for local bunker companies.

1. Panama Canal bunker volume remains the same

Overall, we expect more cargo being transported in all segments and that this cargo will be shipped by fewer vessels than we see today. Post-Panamax and Capesize dry cargo vessels will start passing through the Canal and these bigger vessels will obviously result in fewer, yet increased single supply volumes. However, given that some of these ships will now also be able to reach major bunker ports in the US, we expect total supply volume to rest the same. Neither do we foresee any particular developments in regard to more ship-owners requesting top-offs in the Canal as barging fees rest relatively high.

2. Increased post transit deliveries call for extended flexibility

The well-known transit waiting time shortens substantially with the expansion of the Canal. Less waiting time prior to transit will force ships to bunker after transit, which may in the end cause vessel delays. Today, most ships experience an average two days transit waiting time, which is partly spent on bunkering. With less waiting time, the bunker companies need to tighten coordination further and more flexibility is needed from both bunker supplier and customers.

3. Increasing East Coast focus

The expansion of the Canal increases the number of vessels on longer voyages e.g. traveling to the US East Coast. In fact, reports claim that over the next four years approx. 10 percent of the container traffic will have changed from US west coast to US east coast. Increased transits and traffic into the US gulf means changing market conditions for the bunker industry and we will see a slow, yet steady, movement towards a less unequal split on total number of west coast and east coast (Balboa Vs. Cristobal) bunkering operations.

4. Bunker operations in neglected Caribbean ports set to grow

Bunker companies with close connections to Caribbean ports, which are able to service larger ships will have a good chance to increase sales. Caribbean ports with possibility of welcoming e.g. Post Panamax vessels such as Cartagena, Caucedo, Kingston, and Freeport Bahamas will become increasingly interesting for ship-owners, charterers, and operators for taking bunkers. Furthermore, several minor Caribbean ports located close to existing main trade routes are considering ‘digging deep’ to draw bigger ships and create local jobs in the supply sector.

5. New development pushes for compliance and after sale service

The expected larger vessels and more consolidated shipping companies voyaging in the Canal may affect some local bunker companies negatively. Companies with less organisational structures and capacity may face difficulties in meeting expectations to compliance and safety. Developments towards bigger vessels and more well established ship operators in the Panama Canal might also lead to heightening the bar when it comes to reliability and after sales services, which the large shipping companies regard as a matter of course.

Image courtesy of Monjasa.




Related Links:

Panama Canal expansion ceremony
Expansion of the Panama Canal may reduce bunker prices
Monjasa wins Best Maritime Company award in Dubai
Monjasa net profit and sales volume up, revenue down in 2015
Five years in the U.S. for Monjasa
Monjasa A/S
Panama Canal
Balboa
Cristobal
Panama

Latest News:

FueLNG completes first commercial LNG bunker delivery in Singapore
Viking Sun cruise ship featuring bunker-saving engine and scrubber delivered
Digital bunker procurement: Why is now the time to pay attention?
Oil and fuel oil hedging market update
Less online U.S. oil rigs, OPEC non-event and central bank speeches coming up
Wartsila outlines 'new opportunities for supplying LNG' with FSRB concept
Another first for Wartsila as wireless charging for hybrid coastal ferry is 'successfully' tested
Scandlines hails bunker-saving summer for hybrid ferries
BHP, GoodFuels to collaborate on biofuel bunker project in Singapore
The OPEC / non-OPEC meeting takes centre stage
Oil and fuel oil hedging market update
Fluxys focuses investment on Zeebrugge's fifth LNG tank and second jetty




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Cape Town
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio de Janeiro
Rotterdam
Santos
Singapore
Directory
Africa
Asia
Central America
Middle East
North America
North Europe
Oceania
South America
South Europe
Directory
Germany
Gibraltar
Greece
Hong Kong
Italy
Japan
Netherlands
Panama
Russia
Singapore
South Africa
South Korea
Spain
Turkey
United Arab Emirates
United Kingdom
United States
News
Latest News
Blogs
Archive
Americas
Asia
Europe
Middle East
News
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Environment
Events
Financial
Fuel Quality
Lubes & Additives
Oil Spills
People
Port News
Projects
Regulation/Legal
Services, Products, Technology
Statistics & Research
Vessels
Events
Upcoming Events