As Panama continues to strengthen its position as a pivotal hub for global maritime trade, the bunkering industry in the region has undergone significant shifts throughout 2024. Panama’s strategic location between the Pacific and Atlantic Oceans remains central to international shipping, and 2024 was no exception. The Panama bunkering sector serviced a total of 5,783 vessels, delivering 5,283,500 metric tons of bunker fuel. This marks a 9% year-on-year growth in fuel demand, with notable increases in the consumption of both high-sulfur and low-sulfur fuels, further solidifying Panama’s status as a key maritime fueling hub. Following the drought in 2023, which impacted bunker supply.
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Panama Bunkering Year 2024 in Review
Panama Bunker Sales 2024 – Monthly Volumes of Marine Fuel Grade
| Month | Vessels Bunkered | VLSFO (tonnes) | RMG 380 (tonnes) | MGO (tonnes) | LSMGO (tonnes) |
|---|---|---|---|---|---|
| January | 496 | 247,541 | 88,742 | 8,157 | 33,102 |
| February | 490 | 219,607 | 94,151 | 12,858 | 27,013 |
| March | 485 | 234,332 | 114,229 | 14,878 | 27,875 |
| April | 506 | 225,732 | 114,093 | 7,667 | 29,688 |
| May | 480 | 244,616 | 118,519 | 3,744 | 31,185 |
| June | 519 | 235,534 | 109,457 | 7,396 | 33,738 |
| July | 573 | 257,730 | 131,116 | 10,870 | 36,791 |
| August | 617 | 264,278 | 150,072 | 8,012 | 34,764 |
| September | 601 | 267,115 | 117,498 | 5,030 | 37,998 |
| October | 651 | 316,410 | 157,058 | 12,659 | 38,422 |
| November | 617 | 291,505 | 130,680 | 7,480 | 38,430 |
| December | 661 | 287,768 | 157,685 | 11,347 | 43,763 |
Key Highlights from Panama’s Bunkering Sector
Bunker Sales for Pacific Region (2024):
- Attended Vessels: 4,097
- VLSFO Volume: 2,689,531 metric tons
- RMG 380 Volume: 1,307,901 metric tons
- MGO Volume: 64,551 metric tons
- LSMGO Volume: 295,046 metric tons
Bunker Sales for Atlantic Region (2024):
- Attended Vessels: 1,686
- VLSFO Volume: 678,226 metric tons
- RMG 380 Volume: 106,213 metric tons
- MGO Volume: 51,914 metric tons
- LSMGO Volume: 90,118 metric tons
Total Bunker Sales for Atlantic and Pacific Regions (2024):
- Total Attended Vessels: 5,783
- Total VLSFO Volume: 3,367,757 metric tons
- Total RMG 380 Volume: 1,414,114 metric tons
- Total MGO Volume: 116,465 metric tons
- Total LSMGO Volume: 385,164 metric tons
This brings Panama’s total bunker sales in 2024 to an impressive 5,283,500 tonnes across both regions.
Year-in-Review: Key Insights
- Steady Growth in Ship Attendance:
- Panama serviced a total of 5,783 ships in 2024, reflecting an ongoing increase in maritime traffic. The months of October (651 ships) and December (661 ships) saw the highest levels of ship attendance, with strong demand for bunkering services towards the year-end.
- Fuel Consumption Trends:
- VLSFO remained the dominant fuel, with 3,367,757 metric tons consumed throughout the year, underscoring its critical role in Panama’s bunkering operations.
- RMG 380 saw a significant increase in demand, reaching 1,414,114 metric tons, driven by its cost-effectiveness and continued usage in the Pacific region.
- MGO consumption was relatively steady with 116,465 metric tons, while LSMGO showed a moderate rise, totaling 385,164 metric tons, reflecting the market’s shift towards cleaner-burning fuels.
- Seasonal Trends:
- Panama’s bunkering industry observed higher fuel consumption during the second half of the year, with October marking the peak month for fuel delivery, especially for VLSFO and RMG 380. This seasonal fluctuation highlights the need for efficient fuel allocation to meet the varying demands of maritime traffic.
These figures reaffirm Panama’s status as a central player in the global bunkering market, especially in light of increasing demand for low-sulfur fuels and its strategic location in servicing both Pacific and Atlantic-bound vessels.
Panama Bunker Sales Comparison: 2023 vs 2024
| Fuel Grade | 2023 (tonnes) | 2024 (tonnes) | Y-o-Y Change |
|---|---|---|---|
| VLSFO | 3,379,121 | 3,367,757 | -0.3% |
| RMG 380 | 998,015 | 1,414,114 | +42% |
| LSMGO | 361,365 | 385,164 | +7% |
| MGO | 104,596 | 116,465 | +11% |
| Total | 4,843,097 | 5,283,500 | +9% |
Comparison and Analysis:
- Very Low Sulphur Fuel Oil (VLSFO):
- VLSFO remained the dominant fuel type, showing a slight decline of 0.3% in 2024 compared to 2023. This relatively small decrease reflects the stability in demand for this low-sulfur fuel, driven by the ongoing regulatory push for cleaner shipping fuels. While global shifts in fuel preferences continue, VLSFO’s position as the go-to fuel remains firm in Panama’s bunkering sector.
- High Sulphur Fuel Oil (RMG 380):
- RMG 380 experienced a substantial increase of 42% in 2024 compared to 2023. This growth is attributed to continued demand in the Pacific region, where larger vessels, such as bulk carriers and tankers, often rely on RMG 380 for its cost-effectiveness. The increase in RMG 380 usage is also linked to the growing adoption of scrubber systems on ships. These systems allow vessels to continue using high-sulfur fuels while complying with sulfur emission regulations, thus further boosting the demand for RMG 380. The rise in its usage underscores Panama’s ability to adapt to the growing demand for high-sulfur fuels.
- Low Sulphur Marine Gasoil (LSMGO):
- LSMGO showed a moderate increase of 7% in 2024, continuing its steady growth from the previous year. This fuel grade remains attractive for vessels looking for a cleaner alternative to traditional fuels while operating in regions with strict emission controls. The rise in LSMGO consumption indicates a rising trend toward eco-friendly fueling options in Panama.
- Marine Gasoil (MGO):
- Marine Gasoil, though still significant in Panama’s bunkering mix, saw a slight increase of 11% in 2024, compared to a 5% decrease in 2023. The moderate increase reflects the sector’s ongoing need for more flexible fuel solutions, especially for smaller vessels, despite the overall growth of cleaner fuels like VLSFO and LSMGO.
The year-on-year comparison between 2023 and 2024 underscores a consistent shift toward cleaner fuels like VLSFO and LSMGO, while also highlighting the continued demand for RMG 380 in the Pacific region, driven by larger vessel requirements. The slight decline in VLSFO sales suggests a stable market, while the substantial growth in RMG 380 points to Panama’s bunkering sector adjusting to the evolving mix of fuel preferences.
Global Trends and Panama’s Position in the Bunkering Market
As we move into 2025, Panama’s bunkering infrastructure is well-positioned to meet the growing demand for cleaner fuels, adapt to regulatory changes, and accommodate the evolving dynamics of global shipping. Industry experts anticipate continued growth, driven by advancements in fueling technologies, further regulatory shifts, and the ongoing rise in demand for low-sulfur and cleaner-burning fuels.
For stakeholders in the bunkering industry, Panama’s sector remains a critical area to monitor in the coming year, offering valuable insights into the broader trends shaping the future of global shipping and fuel consumption.
About the Panama Canal
The Panama Canal, an engineering marvel spanning approximately 80 kilometers between the Atlantic and Pacific Oceans, is a vital link between North and South America. Built in one of the continent’s narrowest stretches, the Canal plays a key role in facilitating global maritime trade through its sophisticated system of locks.
The Canal’s locks – Gatun, Pedro Miguel, and Miraflores – function as water lifts, raising ships from sea level to the level of Gatun Lake, which sits 26 meters above sea level. The lock chambers measure 33.53 meters wide by 304.8 meters long, accommodating vessels up to 32.3 meters in width, with a draft of up to 12 meters in tropical fresh water, and a length of up to 294.1 meters.
Water for the locks is drawn from Gatun Lake, using gravity to move ships between different elevations. The Canal’s narrowest section, the Culebra Cut, stretches 13.7 kilometers from the Pedro Miguel Locks to Gatun Lake, carved through rock and limestone.
Annually, the Panama Canal facilitates the passage of between 13,000 and 14,000 ships, connecting over 180 maritime routes and serving more than 1,920 ports in 170 countries. The Canal operates 24/7 year-round, supported by a dedicated workforce of approximately 9,000 employees, ensuring seamless transit services for global maritime traffic.
Source Autoridad Marítima de Panamá