Business

Argus Media: Singapore delivered bunker premiums hit record high

Severe shortage of cargo paired with a reduction of suppliers and barges causing extreme tightness, says source.

Published

7 years ago

August 29, 2019

Admin

Global energy and commodity price reporting agency Argus Media on Wednesday (28 August) provided an industry update linked to IMO 2020’s impact on the Singapore market:

A shortage of bunker fuel and barges in Singapore has sent delivered premiums for 380cst high-sulphur fuel oil (HSFO) to record highs.

The premium to 380cst cargo prices was assessed at $52.15/t yesterday, according to Argus data. The premium has held at around $30/t since the second week of July, but has risen sharply this week to hit $38.63/t on 26 August before reaching yesterday's all-time high.

This is the first time premiums have ever remained so high for so long, in a clear sign the market is struggling to adjust to the International Maritime Organisation (IMO) 2020 regulations that will cap marine fuel sulphur content at 0.5pc from 1 January next year.

"A severe shortage of cargo paired with a reduction of suppliers and barges is causing this extreme tightness", a Singapore based bunker trader.

Total fuel oil imports to Singapore in August are likely to be around 5.4mn t, almost unchanged from 5.31mn t in July, according to market estimates. But much of this is likely to be low-sulphur straight-run fuel oil, vacuum gasoil or other low-sulphur fuel oil (LSFO) components, rather than HSFO. Most of the arbitrage supplies are coming from the Middle East, where peak summer demand is now easing, while supplies from Europe are likely to be mostly LSFO feedstock.

Singapore is likely to receive only limited supplies of on-specification HSFO over the coming weeks, with a strong backwardation in fuel oil markets disincentivising storage of that product. The backwardation has widened sharply to $36/t from just $9/t on 14 August.

Market participants in Singapore and neighbouring ports are actively reducing stocks of HSFO so they can instead receive and store more LSFO, which will become the bunker fuel of choice when the IMO regulations take effect in just over four months' time.

Barge availability is also tightening, as operators clean more of their tanks so they can deliver LSFO. Some barges are also out of service to recalibrate their mass flow meters (MFMs). And two local companies — Southernpec and IPP — have had their bunker craft operator licenses revoked and suspended respectively by Singapore's Maritime and Port Authority in recent months because of suspected tampering with their MFMs.

"Both the majors and the independent suppliers are not expanding their barge fleet and are even reducing them in this dismal business environment", one trader said, referring to the slump in the HSFO market ahead of the IMO changes. Most majors have large volumes of LSFO available and are heard offering aggressively.

A fall in the number of tanks holding HSFO means loading slots at berths are also tight.

"Shipowners expected fuel oil prices to weaken as demand dropped off but they did not anticipate that supply would actually slow down faster than demand", one market participant said.

Severe shortages of HSFO have also hit most other ports in Asia-Pacific, especially in South Korea, Hong Kong and China, which are dependent on supplies from Singapore.

Source: Argus Media
Photo credit: Manifold Times
Published: 29 August, 2019

Bunker Fuel

Huanghua Port expands bunkering capabilities with dedicated fuel oil terminal

Previously, bunkering vessels serving Huanghua Port were required to replenish marine fuel oil at other ports, including Tianjin, before returning to carry out bunkering operations, often resulting in delays.

Published

4 hours ago

June 16, 2026

Admin

Huanghua Port has strengthened its marine fuel supply infrastructure with the commissioning of its first dedicated, all-weather bunker terminal, a move aimed at improving vessel turnaround times and supporting growing shipping activity at the port, according to China-based news outlets on Thursday (11 June).

On 9 June, bunker tanker Heng Feng You 165 completed fuel loading operations at the terminal in the Huanghua Port Comprehensive Port Area before proceeding to an anchorage to provide bunkering services to waiting cargo vessels.

According to local authorities, the new facility addresses a longstanding bottleneck in the port’s marine fuel supply chain.

Yao Meichen, Deputy Director of the Cangzhou Municipal Ocean and Port Administration Bureau said bunkering vessels serving Huanghua Port were required to replenish marine fuel oil at other ports previously, including Tianjin, before returning to carry out bunkering operations, often resulting in delays for vessels awaiting bunkers.

As cargo throughput and vessel traffic have increased in recent years, the absence of a specialised bunker terminal became a constraint on port efficiency. To address the issue, local authorities invested RMB 266 million (USD 39 million) to develop Huanghua Port’s first dedicated marine fuel oil terminal and actively pursued regulatory approvals for both a domestic transfer export bonded warehouse and a liquid bonded storage facility.

The terminal, which entered service at the end of last year, features a dedicated 5,000-dwt berth and storage tanks with a combined capacity of 66,000 cubic metres. It has a designed annual throughput capacity of 820,000 tonnes and primarily handles marine gasoil as well as 120 CST and 180 CST fuel oils.

Authorities said the facility has been operating smoothly since its launch and is capable of ensuring a stable supply of bunker fuel for vessels calling at the port.

The bunkering infrastructure will be further enhanced following approval from Shijiazhuang Customs for the establishment of both the domestic transfer export bonded warehouse and liquid bonded storage facilities. The additions are expected to strengthen Huanghua Port’s ability to provide bunkering services to international-going vessels.

“The commissioning of the marine fuel oil terminal has completely changed the previous situation of off-site fuel supply and ships queuing for fuel, achieving benefits for both bunkering vessels and cargo ships,” said Dong Xianke, General Manager of Cangzhou Bohai New Area Gangkun Marine Fuel Co., Ltd., the terminal’s operator.

Photo credit: David Yu from Pixabay
Published: 16 June, 2026

Methanol

China: Chimbusco takes delivery of new methanol bunkering vessel in Zhoushan

Company says commissioning of “Zhong Ran LV Neng 85” will further enhance its service capabilities in green methanol bunkering in major domestic ports.

Published

4 hours ago

June 16, 2026

Admin

Chimbusco takes delivery of new methanol bunkering vessel in Zhoushan

China Marine Bunker (PetroChina) (Chimbusco) recently took delivery of its first bunkering vessel in China to deliver methanol to dual-fuel ships.

The 8,500-dwt duplex stainless steel chemical tanker Zhong Ran LV Neng 85 was successfully delivered in Zhoushan.

The company said the commissioning of this new ship will further enhance Chimbusco’s service capabilities in green methanol bunkering in major domestic ports and expand its national marine new energy service and support network

During the delivery period, Chimbusco said it focused on safe operations and conducted special training for all crew members of the vessel.

The training covered methanol bunkering operation specifications, prevention of collisions between commercial and fishing vessels, daily vessel reporting, and voyage report filling standards.

Manifold Times previously reported the launching of the bunkering vessel at Taizhou Fangzhen Shipbuilding Wharf in Zhejiang.

The floating out of the ship comes after Chimbusco has obtained methanol bunkering licences for Shanghai Port and Ningbo Port.

Photo credit: China Marine Bunker (PetroChina) (Chimbusco)
Published: 16 June, 2026

LNG Bunkering

CCEC and CMA CGM form joint venture to build and operate LNG bunkering vessel

Each party will hold a 50% ownership stake in the joint venture, which has been established for the purpose of constructing, chartering, and operating one 20,000 cbm dual-fuel LNG bunkering vessel.

Published

4 hours ago

June 16, 2026

Admin

Capital Clean Energy Carriers Corp. (CCEC), an international owner of ocean-going gas vessels, on Friday (12 June) announced the formation of a joint venture company with CMA CGM.

Each party will hold a 50% ownership stake in the joint venture, which has been established for the purpose of constructing, chartering, and operating one 20,000 cbm dual-fuel LNG bunkering vessel.

The joint venture marks CCEC’s entry into the LNG bunkering segment, the company’s first vessel dedicated to marine fuel supply.

In connection with this transaction, the joint venture has entered into a shipbuilding contract with Nantong CIMC Sinopacific Offshore & Engineering (CIMC SOE) for the construction of the vessel at a contract price of USD 82.8 million, with delivery expected in the third quarter of 2028.

Incorporating the latest technologies, the vessel is designed to enable safe and reliable LNG transfers across a wide range of operating conditions. Advanced emissions reduction systems, combined with highly efficient dual-fuel power generation, are designed to help the vessel meet applicable environmental standards of the global shipping industry.

In addition, the joint venture is expected to enter into a 12-year time charter with a joint venture company formed between CMA CGM and TotalEnergies, commencing upon delivery of the vessel from the shipyard.

Jerry Kalogiratos, CEO of Capital Clean Energy Carriers, commented: “This joint venture marks CCEC’s entry into LNG bunkering — a natural extension of our gas platform from carriage into marine fuel supply.

“Working alongside counterparties of the calibre of CMA CGM and TotalEnergies, we can help build the infrastructure that allows LNG to deliver a cleaner emissions profile, alongside security and diversity of supply, while opening a new, long-term contracted revenue stream for the Company through the Joint Venture.”

Christine Cabau, Executive Vice President Operations and Assets of CMA CGM, said: “Together with Capital Clean Energy Carriers and TotalEnergies, we are committed to building a reliable and high-performance LNG bunkering supply chain, which is essential to ensuring the availability and reliability of fuels such as LNG that represent the first step in the decarbonization of our industry.”

Photo credit: Scott Graham
Published: 16 June, 2026