22 Oil Tankers Waiting to Unload off Texas in Harvey Aftermath

Illustration; Image Courtesy: Port of Corpus Christi

As of August 28, 22 oil tankers are stranded off Texas coast as they are unable to offload their cargo due to port closures, according to the US Department of Energy.

The tankers are said to be carrying approximately 15.3 million barrels of imported crude oil near Texas ports.

The Port of Corpus Christi remains closed, however, the United States Coast Guard has issued a modified Zulu status for the Inner Harbor to allow for vessels with up to 20 feet draft to operate.

The port entrance has been blocked by a grounded drillship owned by Paragon Offshore and activities are reported to be underway to remove the beached vessel.

The port authority said that work is being carried out on expediting hydrographic surveys of the Corpus Christi ship channel, adding that the Corpus Christi and La Quinta ship channels are not obstructed by the incident with drill vessel Paragon I.

The port authority expects to restore normal business operations by September 4.

Freeport, Galveston, Houston and Texas City ports remain closed as activities ramp up on preparing to receive vessels. Louisiana Offshore Oil Port (LOOP) facilities have reported normal operations.

Six refineries in the Corpus Christi area, seven in the Houston/Galveston area, and two in the Beaumont/Port Arthur area have been shut down due to the hurricane. Five refineries in the Gulf Coast region are operating at reduced rates, DoE informed in the latest update.

Looking at the impact of the Hurricane Harvey on the tanker market, the temporary disruptions of oil production have already caused significant effects on the market.

The biggest gains so far have been noted in the oil products markets, with the significant cuts in output bringing in a higher demand for commodities such as gasoline (with gasoline futures jumping as much as 7% reaching their highest level in more than two years) as the drop in supply has left many to scramble for new sources,” Allied Shipbroking said.

As a result, there has already been an upsurge in demand and a respective kick-up in freight rates in Europe.

“Product tankers have already started to see a significant amount of strengthening and given that these disruptions are likely to push for longer haul trades to strengthen it should also boost the overall supply/demand balance,” the shipbroker said.

Nevertheless, things have not been as positive in the crude oil trade, with the closure of refineries in the U.S. having also caused a drop in demand for shipments of crude oil.

“The disruption in port operations has also been the cause for the subdued activity being seen in the region over the past couple of days, while it has also taken out some fixing volume from other regions as charterers take a wait and see stance before placing any new orders they may had planned beforehand. The closure of ports surely was the cause for large delays in operations, causing, in turn, a percentage of the fleet for several sectors to be taken out of action,” the shipbroking firm added.

The final impact of the hurricane on the market is yet to be assessed.

World Maritime News Staff


Share this article

Follow World Maritime News

In Depth>


<< Nov 2017 >>
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >


The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >