India has exported its first jet fuel cargo to the U.S. West Coast for energy giant Chevron, according to trade sources and shipping data. This move capitalises on a rare arbitrage opportunity to address supply shortages in Los Angeles.
Since October, jet fuel production on the U.S. West Coast has been limited due to a fire at Chevron’s El Segundo refinery in California, which forced the shutdown of multiple units.
About 60,000 metric tons (472,800 barrels) of jet fuel were loaded onto the Panamax tanker Hafnia Kallang between October 28 and 29 at Jamnagar port, where Reliance Industries operates a refinery, based on data from Kpler, LSEG, and four trade sources.
Castleton Commodities chartered the vessel, which is expected to arrive in Los Angeles in early December, according to several shipbrokers. All sources spoke anonymously; Reliance and Castleton did not comment.
Chevron declined to comment on business matters, only noting it expects to complete repairs at El Segundo early in 2026. Until then, jet fuel supply on the West Coast could remain tight, said two trade sources.
Chevron has stated that its focus is on serving customers worldwide, including those dependent on the El Segundo refinery, which may utilise either local or imported fuel.
Traders think that frequent imports from India are unlikely because shipments from Northeast Asia are more cost-effective; shipping costs from South Korea to the U.S. West Coast have stayed around $40 per ton since October, based on SSY data.
Also Read – Liberty General Enters India’s Surety Bonds Market
Shipping rates between India and the U.S. West Coast are seldom available because of infrequent routes. Last month, exports of jet fuel from Northeast Asia to the West Coast hit a five-month high of approximately 600,000 tons, according to Kpler ship tracking data.
