Five-Day Lead Times in Houston
VLSFO at $565, MGO above $900, and a five-day wait for barges. The Gulf Coast bunker market is at capacity.
Houston VLSFO is assessed near $565/mt, with MGO 0.5% around $908/mt and HSFO 380 at $422.50/mt. Prompt availability is tight across most suppliers. VLSFO requires at least five days' lead time. HSFO and LSMGO are running 5-7 days. The Houston Ship Channel just recorded its highest vessel activity in seven years. Refined product exports to the Middle East out of the Gulf Coast exceeded last year's total in the first quarter alone.
Fuel mix and spreads
VLSFO still holds roughly 40% of U.S. bunker demand. The Hi5 spread near $142/mt keeps scrubber economics comfortably positive for owners with the hardware. LNG and methanol infrastructure is building on the Gulf Coast. Conventional fuels set the price today.
Our read
In a tight-prompt market, reliability is the product. Suppliers who can guarantee delivery windows, barge scheduling, STS coordination, and quality documentation are earning a premium over posted prices. Terminal relationships are the reason the barge shows up on the stem.
This commentary is provided for general information only and does not constitute an offer, solicitation, or recommendation to buy or sell any commodity or financial instrument.