New disruption to state’s fuel supplies looms Airlines cancel, adjust flights

Rough seas from Irma to force port closures

Fuel distributors and traders in Florida braced for a second supply shock as Hurricane Irma barreled toward the state on the heels of disruptions from Hurricane Harvey in Texas.

Irma, described by forecasters as a potentially catastrophic Category 5 hurricane is forecast to reach southern Florida on Saturday, prompting Gov. Rick Scott to declare a state of emergency.

Florida does not have any refineries, and its more than 20 million residents rely on refined products delivered by tanker and barge at its ports.

While locals stocked up on bottled water and plywood, fuel distributors scrambled to fill up on gasoline and diesel supplies before rough seas force port closures.

“We are also working with Homeland (Security) to get ships in before

As Hurricane Irma bore down on the southern United States on Wednesday, airlines adjusted flight schedules, made cancellations and assured passengers they would not have to pay unusually high fares ahead of the storm’s arrival.

American Airlines on Wednesday said it would start winding down operations in south Florida on Friday. Miami-bound flights arriving on Friday from Europe and South America were canceled.

Delta Air Lines and Jetblue announced fare caps on flights out of Florida — $99 on Jetblue and $399 on Delta — for

the hurricane,” said Ned Bowman, executive director at the Florida Petroleum Marketers and Convenience Store Association, which represents 98 percent of fuel sold in Florida.

Bowman added that the “window is closing fast.”

The threat of Irma looms after Hurricane Harvey killed more than 60 people, dumped over 50 inches of rain and damaged 203,000 homes. About a quarter of U.S. refining capacity was offline as Harvey hammered Louisiana and Texas for several days, shutting infrastructure in the heart of the U.S. oil and natural residents trying to get out of the storm’s path, and United Airlines said it had suspended operations out of San Juan, Puerto Rico, and had extended a travel waiver to include cities in south Florida.

Beyond U.S. airlines, Canadian carriers Air Transat and Westjet Airlines on Wednesday launched evacuation operations to remove passengers that could be affected in the Dominican Republic, and

Air Canada allowed passengers to change flights in affected areas free-of-charge. Alana Wise

gas industry.

Retail gasoline prices in Florida have jumped about 36 cents in one week to $2.68 a gallon as of Tuesday, according to motorists advocacy group AAA.

In part because of Florida’s tourism industry and heavy passenger and cargo traffic through its international airports, state demand for motor gasoline and jet fuel is among the highest in the United States, according to the EIA.

The emergency issued by the governor also lifts trucking restrictions, allowing drivers to work longer hours and more freely bring in gasoline and fuel from other states if needed.

“We talked to the governor’s staff about what the worst-case scenario is,” Bowman said, adding that they were well-prepared to address any fuel shortages.

Port Everglades, South Florida’s main seaport for receiving petroleum products including gasoline and jet fuel, said in a notice on its website it has gasoline reserves of at least one week stored on site.

There are cruise, cargo and petroleum ships scheduled to arrive this week and the coming weekend that could be affected by heavy weather, the port said. Three petroleum ships are in port with another two waiting offshore.

Some cargoes destined for Florida could look to the New York Harbor to clear, one trader said. But strong Florida prices mean most might simply float the cargoes until ports clear for discharge, he said.

There are 12 petroleum companies operating in and around the port that provide fuel to a dozen Florida counties and four international airports.