MARAD: USGC-USWC Fuel Shipments Double in September


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- U.S. Gulf Coast-to-West Coast petroleum shipments 
reported under a federal Jones Act waiver more than doubled in September from 
August, led by gasoline and blendstocks and nearly 724,000 bbl of low-sulfur 
straight-run material, Maritime Administration (MARAD) data released this week 
showed.

   Reported PADD 3-to-PADD 5 volumes totaled approximately 2.683 million bbl 
during September, up 117.8% from 1.232 million bbl in August, according to 
individual voyages reported to MARAD.

   The Jones Act generally requires merchandise transported by water between 
U.S. points to move on U.S.-built, U.S.-owned and coastwise-qualified vessels. 
A federal waiver issued March 17 and subsequently extended in May and August 
allowed qualifying domestic cargoes to move aboard vessels that otherwise would 
not be eligible for the trade.

   Gasoline and gasoline blendstocks accounted for approximately 1.242 million 
bbl of September volume, more than double the 609,456 bbl reported in August. 
Cargoes originated from Baton Rouge, Louisiana, Corpus Christi and Houston, 
Texas, with deliveries to California.

   Renewable diesel totaled 716,711 bbl, up from 547,476 bbl in August. Three 
cargoes moved from Louisiana and Port Arthur, Texas, to destinations in 
Southern California and Portland, Oregon.

   Another 723,986 bbl of low-sulfur straight-run material moved in two cargoes 
from Gulf Coast ports to Richmond, California.

   The latest MARAD figures follow a sharp increase in Gulf-to-West Coast 
waterborne flows recorded by the Energy Information Administration. EIA 
reported PADD 3-to-PADD 5 petroleum-product tanker and barge movements of 4.433 
million bbl in July, up 252% from 1.260 million bbl in July 2025.

   July volume fell from 6.992 million bbl in June but remained well above 
levels earlier in the year. Movements totaled 822,000 bbl in January, 736,000 
bbl in February and 1.763 million bbl in March before rising to 4.649 million 
bbl in April and 5.145 million bbl in May.

   The higher waterborne flows have coincided with wide West Coast distillate 
premiums over Gulf Coast markets. Los Angeles ULSD averaged about 65cts gallon 
above USGC ULSD from April through July, with the monthly differential 
narrowing from about 88cts in April to 52cts in July, according to DTN market 
data.

   On October 2, Los Angeles ULSD was assessed at $4.6727 gallon versus $4.1627 
gallon on the Gulf Coast, a 51cts premium. The differential narrowed from 79cts 
on September 2 but remained 20cts wider than the 31cts premium recorded on 
October 2, 2025.

   Los Angeles jet fuel held an 8.25cts premium to the Gulf Coast on October 2, 
reversing from a 2.75cts discount on September 2 and exceeding the 4.25cts 
premium recorded on the same date in the previous year.

   Gasoline showed the opposite pattern. Los Angeles CARBOB regular was 
assessed at a 5.50cts discount to USGC conventional premium gasoline on October 
2, compared with a 2.25cts discount on September 2 and a 25.50cts premium in 
the previous year.

   The September MARAD data extend the rise in domestic Gulf-to-West Coast 
petroleum movements seen since the waiver took effect, with recent cargoes 
spanning gasoline and blendstocks, renewable diesel and refinery feedstocks.

    

    

   Los Angeles-USGC Product Price Spreads


Product  Sept. 2, 2026Oct. 2, 2026Monthly ChangeOct. 2, 2025YoY Change

ULSD     $0.79        $0.51       -0.028        $0.31       +0.20     

Jet Fuel $-0.0275     $0.0825     +0.11         $0.0425     +0.04     

Gasoline*$-0.0225     $-0.05      +0.0325       $0.2550     -0.31     


   Source: U.S. Maritime Administration 

   *Gasoline compares Los Angeles CARBOB regular with USGC conventional premium 
gasoline.

    




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