Americas News
Panama Canal Diversions Raise Cold-Weather Bunker Risks: Gard
Shipowners considering routes around South America due to Panama Canal draft limits and fewer daily transits should assess cold-weather risks to bunker handling and machinery, according to marine insurer Gard.
Vessels operating in the Drake Passage or Strait of Magellan during winter may encounter bunker-related problems, Siddharth Mahajan, team leader, loss prevention Asia at Gard, said in an article published last week.
He added that this could occur if their fuel-heating arrangements are not suited to prolonged operations in colder climates.
"Owners should therefore ensure that bunker management procedures, machinery limitations, and cold weather practices are carefully reviewed before undertaking such voyages," the article states.
The warning comes as reduced rainfall linked to recurring El Niño conditions has affected water availability in the Panama Canal watershed, leading to restrictions on vessel transits and draft.
The Panama Canal Authority reduced daily transit slots at the Neopanamax and Panamax locks from September 3, with a further cut at the Panamax lock scheduled for September 15.
Some operators are considering southern routes as an alternative to the Canal, but Gard noted that these voyages bring additional weather, navigational and operational risks alongside potentially higher voyage costs and fuel consumption.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 963.00 | 26.00 | 1351.50 | 10.50 |
| Rotterdam | 766.00 | 3.00 | 1446.00 | 11.50 |
| Houston | 817.00 | 11.50 | 1421.00 | 1.00 |
| Fujairah | 981.00 | 12.00 | 1768.50 | 17.50 |
| Americas Average | 962.50 | 8.50 | 1630.50 | 22.50 |
| Global 20 Ports Average | 929.50 | 10.50 | 1565.00 | 13.00 |
| Global 4 Ports Average | 882.00 | 13.50 | 1496.50 | 9.50 |
| Global Average Bunker Price | 978.50 | 20.00 | 1616.50 | 18.50 |
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