Storm Alert – October 7, 2024 – Hurricane Milton
Hurricane Milton has rapidly strengthened, reaching Category 3 status overnight. Further strengthening is expected through Tuesday morning, with the storm set to rise to nearly Cat 5 levels before weakening ahead of landfall. Milton is projected to make landfall as a Category 3 storm between Cedar Key, FL, and Naples, FL.
Fuel markets are significantly tightening due to pre-storm preparations. Coastal area fuel terminals have set mandatory minimum inventory levels for their tanks in line with dike levels to minimize storm surge damage. This preventative measure will ensure more fuel is available more quickly after the storm but does limit pre-storm refueling operations.
Moreover, carrier capacity is still stretched thin. Terminals are experiencing long lines at the rack, which keeps local carrier capacity reduced. Several terminals have announced plans to close either today or tomorrow afternoon, which will further intensify bottlenecks. Between tight freight capacity, closing terminals, and terminal minimum inventories, markets are severely constrained already – though all of these measures are done to minimize downtime after the storm and enable a faster recovery for Florida fuel markets.
Florida markets are currently experiencing unusually high demand, indicating a “panic buying” response to Milton’s approach. Mansfield is working around the clock to ensure customer fueling operations are not impacted by the storm. Mansfield encourages all customers to be cautious when ordering fuel to ensure that 1) the fuel is urgently needed and 2) will fit within the tank when delivered. Given the limited refueling capacity ahead of the storm, any freight slowdown from retained deliveries will cause significant challenges impacting overall market conditions. For further guidance, check out Mansfield’s What To Do Before the Storm guidelines.
Mansfield is actively working to supply customers ahead of the storm. Mansfield has moved all Florida markets to Code Red, requesting 72-hour notice for new deliveries. Mansfield has also moved southern Georgia, including Macon, Bainbridge and Albany, to Code Orange, requesting 48-hour notices.
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MARKET CONDITION REPORT - DISCLAIMER
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