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JLC China Bunker Market Monthly Report (July, 2020)

In June, bunker fuel prices in Malaysia and Singapore weakened compared with domestic prices and incentivised distributors to make large purchases, reports JLC.

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

JLVJLC China Bunker Market Monthly Report (July, 2020)

Highlights

Demand and Supply

Bunker Fuel Demand

Bonded bunker fuel sales rise in July on better demand

In July, China’s bonded bunker fuel sales grew to about 1.36 million mt, versus 1.18 million mt in June, JLC data showed. Demand for bonded bunker fuel improved in July as the shipping market recovered with better control of the virus in some parts of the world. Idle freight capacity was activated upon receding impacts of the virus and demand for containers transport improved markedly. Meanwhile, sales of bonded bunker fuel were driven up by strong demand for iron ore recently amid positive sentiment. Chimbusco and Sinopec sold about 502,000 mt and 635,000 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 100,000 mt for SinoBunker, 12,000 mt for China ChangJiang Bunker (Sinopec) and 22,000 mt for CNPC-TAFO. New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 85,000 mt.

China’s bonded bunker fuel sales climbed to 1.29 million mt in June, up by 3.3% month on month, according to GAC data. In June, bonded bunker fuel prices rose, fueled by improving sentiment. In addition, domestic ports were overwhelmed by congestion and tankers had difficulties unloading. As end-user demand improved, freight capacity tightened, leading to higher freight rates. Meanwhile, the shipping market rebounded slightly as governments of different countries adopted a series of policies to stimulate economic recovery, further supporting a modest increase in bonded bunker fuel sales in June. Specifically, bonded bunker fuel sales were 607,000 mt for Sinopec, 486,000 mt for Chimbusco, 96,000 mt for SinoBunker, 8,800 mt for China ChangJiang Bunker (Sinopec), 16,000 mt for CNPC-TAFO and 79,000 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone.

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Domestic bunker fuel demand slides in July

Domestic bunker fuel demand dropped in July. As the rainy season in the southern region extended, bulk demand reduced significantly in July and the shipping market stayed sluggish. Although the rainy season receded since the middle of the month, the bulk market’s support from the hot weather for a short period was not firm. Demand for coal did not improve much with a lack of boost to the shipping market. End users’ consumption of domestic-trade heavy bunker fuel was about 260,000 mt in the month, down by 20,000 mt or 7.14% from the previous month. The demand for light bunker fuel was 90,000 mt in July, down by 5,000 mt from June on thin trades amid frequent rains.

Bunker Fuel Supply

Bonded bunker fuel imports drop 10.36% in June

China’s bonded bunker fuel imports were 1,392,000 mt in June, a decline of 10.36% month on month and a rise of 36.33% year on year, GAC data showed. In June, bunker fuel prices in Malaysia and Singapore weakened, compared with domestic bunker fuel prices. The cost-effectiveness of bunker fuel from these countries continued to incentivize domestic bonded fuel distributors to make large purchases. Besides, some early cargoes of bonded bunker fuel imports delayed arrivals to June. Therefore, China’s bonded bunker fuel imports in June were relatively high, despite a month-on-month slip.

Specifically, the largest import source for China was still Malaysia with 770,000 mt of bunker fuel, followed by Singapore with 279,000 mt. The imports were 123,000 mt from South Korea, 90,000 mt from UAE and 60,000 mt from Bahamas. Besides, imports from Japan and Thailand totaled 69,000 mt.

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Domestic blended bunker fuel supply dips in July

Chinese blended producers supplied a total of around 330,000 mt of heavy bunker fuel in July, a drop of 10,000 mt or 2.94% month on month, JLC data showed. Feedstock costs were stable to lower due to slim downstream demand, despite a tight supply of low-sulfur residue oil. Domestic bunker fuel prices stayed low amid a weak coastal bulk market and tepid end-user demand. Although blending profits increased, blended producers were reluctant to boost supply and most of them mainly supplied to buyers with contracts and operated with low stocks. Therefore, domestic blended bunker fuel supply in July slipped. Light bunker fuel supply was about 90,000 mt, down by 10,000 mt from June. Despite rising international crude prices, light bunker fuel supply stayed low amid slack sentiment.

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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 August, 2020

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

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Photo credit: DNV
Published: 4 September, 2026

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