Idle tanker slows U.S. fuel supply response

Foreign news agency news on May 12, shipping sources said on Wednesday that efforts to deliver fuel to fuel-scarce areas in the United States have slowed down because shipowners have sealed tankers flying the American flag that can sail along the coast
.


The Colonial Pipeline network was shut down due to a hacker attack, interrupting nearly half of the fuel supply on the East Coast, leaving parts of the southeast facing severe gasoline and diesel shortages
.


Colonial said the restart began on Wednesday, but warned that it will take several days for the fuel supply chain to return to normal
.


As motorists flocked to refuel, gasoline prices rose to their highest level in seven years
.


One way to alleviate the fuel shortage is to use tankers to transport fuel from refineries along the Gulf Coast.
The fuel produced by these refineries usually passes through pipelines
.


These ships can deliver fuel to cities and states on the east coast that need fuel
.


According to the Jones Act, only tankers flying the American flag are allowed to sail on the coast of the United States and carry American cargo
.


Business executives and market sources said that before the closure of the Colonial Pipeline pipeline, several of the approximately 60 vessels flying the American flag (mainly oil tankers and barges) had ceased service due to low demand
.


  A spokesperson for the shipping company Overseas Shipholding Group Inc.
said it would take at least 10 days for an idle tanker to restart
.


  She said, “If the pipeline is shut down for a period of time, we can certainly reactivate some tankers soon
.
”

  The company told investors last weekend that OSG idled six Jones Act tankers in the first quarter.

.


  Two sources familiar with the situation said that, however, some shipowners want to seek long-term contracts with potential charterers of Jones Act tankers, which makes it difficult to quickly respond to the crisis
.


  Shipowners are also looking for high freight rates to enable them to pull the ship out of the berth
.


  A source said that large idle barges can be deployed relatively quickly because they can be towed away, do not require engines, and do not require a lot of paperwork
.


  The U.
S.
government is considering urgent measures to lift the restrictions of the Jones Act so that more ships can sail
.


  According to three people familiar with the matter, once the US government announced the abandonment of the Jones Act, refiners and wholesalers have temporarily obtained at least three foreign-flagged vessels
.


  A shipbroker said, “There is no progress so far, everything is just in case
.
”

  Experts said that even if the Jones Act was abandoned and an international boat charter was found, the worst affected in the southeastern United States In areas such as Florida and Savannah, Georgia, only a few ports can receive large tankers
.


  Once the cargo arrives, a fleet of trucks will be needed to transport the fuel from the port to the demand center inland
.


  The supplier also intends to ship ships from Europe to the Port of New York, although it will take time for these ships to arrive, and it will take time to get fuel from there to where it is needed
.


  Wood Mackenzie (Wood Mackenzie) Vice President of Refining, Chemicals and Petroleum Markets, Alan Gelder said, “The best place to ship large cargo is the Port of New York, because large cargo to Europe passes through there
.
Other ports There is not necessarily such an infrastructure
.
"