Houston, New Orleans marine fuel bunker operations close amid wintry weather

Marine fuel spot bunker operations in Houston and New Orleans ports were suspended on Jan. 21 due to snowfall, which market sources expected to cause significant operational delays throughout the week.

Multiple sources said activity in the US Gulf Coast spot marine fuel bunker market remained subdued on the day, as both ports of Houston and New Orleans were closed Jan. 21 and were set to remain closed Jan. 22 as well, according to the ports' websites.

"We have no idea when we will be able to get to any ship," a source said, adding the port of New Orleans was not able to process any bunker inquiries at the time.

The same source said the Coast Guard in New Orleans was preventing any vessels from entering the Mississippi River, and those already in the river faced restricted movement.

A second USGC-based source said about five of their ships were delayed for Jan. 21-22.

"Tomorrow, we expect similar as snow will melt today but refreeze overnight, making morning transit tomorrow hazardous," a third source said. "By [Jan. 22] afternoon Houston port is expected to start resuming operations as normal."

The port of Houston said on its website midday Jan. 21 that all port facilities would remain closed Jan. 22, but that it may resume vessel operations at container terminals in the evening that day, if conditions allow.

The port of New Orleans said midday Jan. 21 it expected to resume port operations Jan. 23 once temperatures and conditions improve, according to its website.

Once bunkering operations at Houston and New Orleans resume, there could still be delays as suppliers work to mitigate any logistical issues.

Platts, part of S&P Global Commodity Insights, assessed spot 0.5%S very low sulfur fuel oil bunker prices in Houston down $15 at $574/mt ex-wharf on Jan. 21, and assessed marine gasoil in the port down $7 at $764/mt ex-wharf.

Similarly, prices in New Orleans fell as well, with Platts assessing 0.5%S VLSFO bunker prices in the port at $600/mt ex-wharf, down $5, and similarly, MGO prices in New Orleans fell $9 to $769/mt ex-wharf.

Bunker prices took direct from crude and refined product futures prices, which decreased on the day. The March ICE Brent futures contract was assessed at $79.35/b at 2:30 ET, down $1.40/b, while the February ultra low sulfur diesel futures contract decreased 6.29 cents to $2.5581/gal.