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JLC China Bunker Oil Market Monthly Report (April, 2020)

‘Despite the overall weak shipping demand amid the rampant coronavirus, Chinese refiners started mass production of low sulfur bunker fuel,’ reads report.

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Beijing-based commodity market information provider JLC Network Technology Co. on Wednesday (13 May) shared its JLC China Bunker monthly report for March with Manifold Times through an exclusive arrangement: 

JLC China Bunker Market Monthly Report (Apr, 2020) 

Demand and Supply

Bunker Oil Demand

Bonded bunker fuel sales rise in April on competitive prices

In April, China’s bonded bunker fuel sales were about 1.15 million mt,  JLC data showed. The bonded bunker fuel demand was propped up by competitive prices of low-sulfur bunker fuel. Despite the overall weak shipping demand amid the rampant coronavirus, Chinese refiners started mass production of low sulfur bunker fuel. Benefited from short distance ol supply of fine resources, prices of China’s low- sulfur bunker fuel exported through major domestic ports were equivalent to or lower than those from Singapore. With more shares in the market, sales of bonded bunker fuel in April grew slightly. Chimbusco and Sinopec sold aboul 460,000 mt and 448,000 mt of bonded bunker fuel, respectively. New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 138,000 mt. Sales of China ChangJiang Bunker (Sinopec) and SinoBunker amounted to about 104,000 mt.

China’s bonded bunker fuel sales rose to 1,105 million mt in March, up by 5.37% year on year, according to GAC data. With the effective control ol COVID-19 In March, the improving shipping demand on resumption of Chinese ports facilitated the bonded bunker fuel market. Besides, domestic refiners actually engaged in supplying low sulfur bunker fuel, stimulated by the export tax rebate policy. Relying less on imports, China’s bonded bunker fuel sales grew in March. Specifically, bonded bunker fuel sales were 442,000 mt for Chimbusco, 438,000 mt for Slnopec, 62,000 mt for China ChangJiang Bunker (Sinopec), 54,000 mt for SinoBunker and 109,000 mt for new enterprises In the China (Zhejiang) Pilot Free Trade Zone. 

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Domestic bunker fuel demand rallies in April 

Domestic bunker fuel demand ralied In April. As operations were returning to normal, bulk demand continued improving, among which demand for coal, metal ore and grain recovered. As a result, coastal transport demand was stable to better and bunker fuel demand recovered briefly. 

Besides, some end-users stocked up on low bunker fuel prices, contributing to the ongoing recovery of bunker fuel demand. The demand for dornestic-trade heavy bunker fuel was about 260,000 mt in the month, up by 60,000 mt or 30% from the previous month. The demand for light bunker fuel was 85,000 mt in April, up by 15,000 mt from March on increasing demand amid stable trades when fishermen made purchases mainly based on needs.

Bunker Oil Supply

Bonded bunker fuel imports drop 37.55% In March 

China’s bonded bunker fuel imports were 747,200 mt in March, a drop of 37.55% year on year, GAC data showed. Bonded bunker fuel imports plummeted in March on sluggish sentiment and abundant domestic supply. Rampant COVID-19 pandemic overseas and dives of international crude prices suppressed buying interests of bonded bunker fuel traders. Meanwhile, as domestic refiners started mass production of low-sulfur fuel oil under the VAT rebate policy, China relied less on bunker fuel imports. 

Affected by the virus, there were great changes in import sources and imports from Southeast Asia slumped. Specifically, the largest import source for China was South Korea with 152,000 mt of bunker fuel, followed by Egypt wlh 134,000 mt. The imports from Malaysia were only 132,000 mt. The imports went 101,000 mt from UAE, 95,000 mt from Indonesia and 53,000 mt from Japan. Besides, there were imports of 30,000 mt, 25,000 mt and 21,000 mt from Russia, Iraq and Singapore, respectively. 

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Domestic blended bunker fuel supply remains low in April 

Chinese blend producers supplied a total of around 300,000 mt of heavy bunker fuel In April, a rise of 70,000 mt or 30.43% month on month, JLC data showed. As restrictions were lifted in most parts, shipping demand was getting back on track and the bunker fuel market was returning to normal. Therefore, domestic trade bunker fuel supply in April rose slightly than March. However, affected by dives of international crude prices, bunker fuel prices stayed low, and most blend producers in Northeast China halted operations on declining profits at the end of the month. On the whole, domestic trade bunker fuel supply stayed low in April. Light bunker fuel supply was about 10,000 mt, up by 5,000 mt from March.

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Bunker prices, profits

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JLC Network Technology Co., Ltd is recognised as the leading information provider in China. We specialise in providing transparent, high-value. authoritative market intelligence and professional analysis in commodity markets. Our expertise covers oil, gas. coal, chemical, plastic, rubber. fertilizer and metal industry, etc.

JLC China Bunker Oil Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market’s, demand, supply, margin, freight index. forecast and so on. The report provides full-scale & concise insight into China’s bunker oil market. 

All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise redistributed without prior authorization from JLC. 


Photo credit: JLC Network Technology Co., Ltd
Published: 14 May, 2020

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Legal

Singapore police arrest eight over alleged illegal MGO transaction off Tuas

SPF says preliminary investigations found that crew members of a Singapore-registered tugboat misappropriated MGO worth about SGD 10,570 without their company’s knowledge and sold it illegally.

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Singapore police arrest eight over alleged illegal MGO transaction off Tuas

The Singapore Police Force (SPF) on Thursday (13 August) said it has arrested eight men, aged between 25 and 54, for their suspected involvement in an illegal transaction of Marine Gas Oil (MGO).

On 13 August 2026 at about 1.05am, officers from the Police Coast Guard (PCG) conducted a check on a Singapore-registered tugboat in the waters off Tuas and discovered that eight crew members were possibly involved in the illegal transaction of MGO. 

“Preliminary investigations revealed that the crew members of the tugboats misappropriated MGO valued at about SGD 10,570 (USD 8,258), without their company’s knowledge,” SPF said in a statement.

“The MGO was sold illegally for their personal financial gain.”

The eight crew members will be charged in court on 14 August 2026 with the offence of theft by servant of property in possession of master under Section 381 of the Penal Code 1871 If convicted, they shall be punished with an imprisonment term that may extend to seven years and shall also be liable to fine.

“The Police take a serious view of illegal transaction of MGO in Singapore Territorial Waters and will continue to conduct enforcement and security checks to prevent, deter and detect such illicit activities in Singapore waters,” SPF added. 

 

Photo credit: Singapore Police Force
Published: 14 August, 2026

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Port & Regulatory

Gard: Sulphur-related bunker claims rise amid tighter China MSA enforcement

Claims involving excessive sulphur content in marine fuels have been rising, while stricter inspections by the China MSA have heightened the focus on sulphur compliance, particularly in the Bohai Sea.

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Maritime protection and indemnity (P&I) club Gard on Wednesday (12 August) highlighted that claims involving excessive sulphur content in marine fuels have been rising, while stricter inspections by the China MSA have heightened the focus on sulphur compliance, particularly in the Bohai Sea:

Rise in off-spec sulphur claims

Recent claims experience indicates that bunker quality continues to pose a significant operational risk for shipowners. In our earlier review of bunker-related claims during the first five months of 2026, we highlighted a rise in off-specification bunker incidents amid increased pressure on global fuel supply chains following the escalation of the conflict in the Middle East. 

Specifically for Sulphur compliance, between January and June 2026, the number of sulphur-related cases increased by more than threefold compared with the same period in 2025. Notably, the number of cases recorded in the first six months of this year has already exceeded the total number reported during the whole of last year by approximately 40%. 

While each case is fact-specific, the increase is notable because excessive sulphur content constitutes a MARPOL compliance issue. Unlike many other bunker quality problems, sulphur non-compliance identified through port state inspections can result in vessel delays, enforcement action, and substantial costs associated with debunkering and fuel disposal. 

The map below illustrates the geographical distribution of sulphur-related claims recorded during the first six months of 2026, based on the location where the bunkers were stemmed.

Distribution of sulphur related claims

China MSA steps up sulphur compliance enforcement

According to our correspondent, Huatai, on 5 June 2026, the maritime authorities of Tianjin, Hebei, Liaoning and Shandong jointly launched a special campaign on ship pollution prevention and control in the Bohai Sea region. The campaign involves coordinated supervision by local MSA branches across the region and is expected to last nearly five months. It covers major ports and surrounding port areas in the Bohai Sea region, including Tianjin, Tangshan, Qinhuangdao, Huanghua, Jinzhou, Yingkou and Longkou. 

While the initiative is broader than bunker sulphur compliance alone, its scope includes inspections relating to air pollution prevention, SOx emissions, fuel compliance and other high-pollution-risk operations. Enforcement measures are expected to comprise onboard inspections, cross-regional enforcement activities, unannounced spot checks and remote monitoring. These efforts will be supported by a combination of UAV patrols, maritime patrol vessels, shore-based monitoring systems and rapid on-site fuel testing. 

As a result, vessels trading in the Bohai Sea region may experience increased scrutiny of fuel compliance documentation, fuel sampling records, onboard fuel management procedures, and the handling or disposal of suspected non-compliant fuel.

Documents typically requested by China MSA

Based on our recent experience, including the case discussed above, and subject to the specific requirements of the local MSA office, owners and operators may be requested to provide supporting documentation such as: 

  • Bunker documentation – Bunker Delivery Notes (BDNs), MARPOL fuel sample records, fuel test reports, and relevant fuel quality certificates. 
  • Statutory certificates – including the International Air Pollution Prevention (IAPP) Certificate and International Oil Pollution Prevention (IOPP) Certificate. 
  • Operational records – engine logbooks, deck and navigation logbooks, Oil Record Book entries, and records relating to fuel transfers, storage and consumption. 
  • Sampling documentation – the Master’s statement and any records demonstrating how fuel samples were drawn, sealed, labelled, handled and retained. 
  • Correspondence records – communications with the authorities, bunker suppliers, charterers and other relevant stakeholders. 
  • Fuel disposal records – approved disposal plans, debunkering documentation, receipts and evidence of final disposal, where applicable. 

The exact documentation required will depend on the nature of the investigation, the findings of the inspection, and the requirements of the local enforcement authority. 

Possible regulatory consequences in China

Under the Air Pollution Prevention and Control Law of the People’s Republic of China, ocean-going vessels are required to use fuel oil meeting atmospheric pollutant control requirements after berthing. Vessels operating within designated emission control areas must also comply with applicable emission standards. Article 106 provides that where vessel fuel oil fails to meet applicable standards or requirements, the competent maritime authorities may impose fines ranging from RMB 10,000 to RMB 100,000. Liability may extend to shipowners, ship operators and ship managers depending upon the circumstances of the case. 

Recommendation

Sulphur compliance should be treated as both a fuel quality and regulatory risk. Owners and operators are encouraged to take preventive steps before bunkering, act promptly if non-compliant fuel is suspected, and preserve evidence carefully if an inspection or claim arises. Under amended 

Resolution A.1206(34), Appendix 18, 2.1.5, if the BDN shows compliant fuel, but the master has independent test results of the fuel oil sample taken by the ship during the bunkering which indicates non-compliance, the master may document this by notifying the ship’s flag Administration, with copies to: 

  • the competent authority of the relevant port of destination, 
  • the Administration under whose jurisdiction the bunker deliverer is located, 
  • and to the bunker deliverer.

 

Photo credit: shraga kopstein on Unsplash / Gard
Published: 14 August, 2026

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LNG Bunkering

Shell expands LNG bunkering footprint in Spain with Valencia

As one of the region’s key maritime hubs, the company said Valencia expands the options available to shipowners seeking LNG supply along major shipping routes.

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Shell expands LNG bunkering footprint in Spain with Valencia

British oil giant Shell on Thursday (13 August) said Valencia has joined its growing network of bunkering locations, making LNG available as a marine fuel.

The successful completion of the first LNG bunkering operation in Valencia marked an important milestone for Spain and further strengthened Shell’s LNG supply capabilities across the Mediterranean. 

In a video shared by the company, bunkering vessel Alice Consulich was shown supplying an undisclosed volume of LNG to the container ship MSC Sabrina.

“As one of the region’s key maritime hubs, Valencia expands the options available to shipowners seeking LNG supply along major shipping routes,” Shell said in a social media post. 

Shell said the achievement reflected the strong collaboration across the maritime value chain, including MSC Mediterranean Shipping Company, the Port of Valencia and Fratelli Cosulich Group.

“We look forward to making more LNG bunker deliveries in Valencia and across the Mediterranean as LNG infrastructure and capabilities continue to expand,” the company said. 

 

Photo credit: Shell
Published: 14 August, 2026

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