Panama is strengthening its position as a leading global bunkering hub, with rising marine fuel sales and strategic policy developments. Despite challenges related to global market volatility and increasing regulatory demands, Panama remains a key player in the maritime fuel supply chain.
Marine Fuel Sales in Panama See Strong Recovery
Panama’s bunker market has experienced a robust recovery. In April 2025, marine fuel sales increased by 21.7% year-on-year. October and December 2024 recorded the highest monthly bunker volumes since 2019. The year closed with a total of 5.1 million metric tons sold, marking a 3.9% growth compared to 2023.
This growth aligns with a rise in vessel traffic. In December 2024, 661 ships called for bunkering services, reflecting strong demand across vessel segments.
Very Low Sulfur Fuel Oil (VLSFO) continues to dominate due to IMO 2020 compliance. However, High Sulfur Fuel Oil (HSFO) and Low Sulfur Marine Gasoil (LSMGO) also saw increased sales, supporting the varying needs of the global fleet.
Regulatory and Geopolitical Forces Shape Panama’s Bunkering Landscape
Panama Canal Policies and Sustainability Initiatives
Though not directly tied to bunker supply, Panama Canal operations heavily influence fuel demand. The upcoming NetZero Slot initiative, starting in October 2025, will prioritize low-emission vessels, aligning with Panama’s strategy to promote decarbonization in shipping.
Combating Illicit Maritime Activities
The Panama Maritime Authority (AMP) has introduced stricter regulations for ship-to-ship (STS) oil transfer operations, requiring 48-hour advance notice for all Panama-flagged vessels over 150 GT. These efforts target the “shadow fleet”, which is involved in sanctions evasion or non-compliant activities.
Since 2019, over 650 vessels have been removed from the Panamanian registry, including 214 in 2025, reinforcing Panama’s commitment to transparency and maritime law enforcement.
Market Volatility and Global Fuel Supply Risks
Ongoing geopolitical tensions, particularly the Russia–Ukraine conflict, continue to impact fuel availability and pricing. Local suppliers have expressed concerns about potential global supply chain disruptions, increasing uncertainty in bunker procurement and price strategies.
Industry Dynamics and the Future of Bunkering in Panama
Internal Market Competition and Legal Challenges
Panama’s bunkering sector faces internal controversy. Reports of exclusivity agreements between major cruise lines and Monjasa at Colón 2000 terminals have raised concerns about potential breaches of Panamanian competition laws.
Transition to Cleaner Marine Fuels
While fossil fuels still dominate the bunker market, alternative fuels are gaining momentum. Recent biofuel bunkering operations in Panama mark early steps toward zero or near-zero GHG emissions in marine fuel supply.
Conclusion: Panama’s Resilience in a Changing Bunkering Industry
Panama continues to serve as a resilient and strategic bunkering hub, adapting to shifting market demands, regulatory challenges, and environmental goals. With strong infrastructure, growing fuel sales, and proactive compliance measures, Panama is well-positioned to thrive in the evolving global maritime landscape. Panama maritime fuel market