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JLC China Bunker Market Monthly Report (October, 2020)

Sales of bunker fuel fell as demand was tepid in October amid sluggish demand for transport due to falling international trade activities as a result of COVID-19.

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Beijing-based commodity market information provider JLC Network Technology Co. on Wednesday (11 November) shared its JLC China Bunker monthly report for October with Manifold Times through an exclusive arrangement:

JLC China Bunker Market Monthly Report (October, 2020)

 Highlights

Demand and Supply

Bunker Fuel Demand 

Bonded bunker fuel sales drop in October

In October, China’s bonded bunker fuel sales fell to 1.22 million mt, JLC data showed. Sales of bonded bunker fuel dropped as demand was tepid in October amid sluggish demand for transport due to falling international trade activities as a result of COVID-19. Besides, most Chinese ports were closed for refueling during the long holiday in early October and strong winds affected port operation at the end of the month, which dampened demand. Chimbusco and Sinopec sold about 502,100 mt and 483,000 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 54,500 mt for SinoBunker and 35,000 mt for China ChangJiang Bunker (Sinopec). New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 149,000 mt.

China’s bonded bunker fuel sales dropped to 1.41 million mt in September, down by 17.58% month on month, according to GAC data. In September, demand was underpinned by term contracts and gained some support by demand that was switched from Hong Kong ports due to COVID-19. Although sales of bonded bunker fuel at ports in Qingdao, Lianyungang, Zhoushan and Xiamen hit new highs, due to delays in customs clearance, sales recorded by customs were lower than actual sales in September. Specifically, bonded bunker fuel sales were 577,700 mt for Sinopec, 592,700 mt for Chimbusco, 42,800 mt for SinoBunker, 38,300 mt for China ChangJiang Bunker (Sinopec) and 156,500 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone.

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Domestic bunker fuel demand stabilizes in October

Domestic bunker fuel demand was largely unchanged in October. End users’ consumption of domestic-trade heavy bunker fuel was about 290,000 mt in the month, flat from the previous month. The demand for light bunker fuel was 110,000 mt in October, up by 10,000 mt from September. On one hand, some downstream traders capitalized on lower prices and increased purchases. On the other hand, berthing and refueling operation in the southern region was impeded by typhoon. Some freight capacity was idle due to thin demand for cargoes. Some traders were cautious about trading amid prevailing bearish sentiments.

Bunker Fuel Supply

Bonded bunker fuel imports slip 3.1% in September

China’s bonded bunker fuel imports were 707,000 mt in September, a dip of 3.1% month on month and a drop of 19.1% year on year, GAC data showed. Bonded bunker fuel imports did not gain an edge over domestic supply as prices of low-sulfur fuel oil in China were lower than those in Singapore. Besides, domestic production of low-sulfur bunker fuel oil stabilized in the month and bonded fuel oil distributors were still consuming stocks they replenished previously. Therefore, China’s bonded bunker fuel imports remained low in September.

Specifically, the largest import source for China was still Malaysia with 352,000 mt of bunker fuel. Imports from Singapore rose markedly to 235,000 mt. The imports were 118,000 mt from South Korea. Besides, imports from other countries totaled 2,000 mt.

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Domestic blended bunker fuel supply falls in October

Chinese blending producers supplied a total of around 320,000 mt of heavy bunker fuel in October, a drop of 20,000 mt or 5.88% month on month, JLC data showed. In October, low-sulfur residue oil supply reduced amid tepid buying interest of downstream traders, despite support from high prices. Besides, blending producers were depressed by high blending costs and low blending margins. Bearish sentiments prevailed in the blending market amid falling international crude prices. Supply was dampened as end-user consumption declined. Domestic blended bunker fuel supply dropped but was not tight in October due to slack demand. Light bunker fuel supply was about 120,000 mt, flat from September due to lower diesel bunker prices and tepid demand. 

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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. 

Related: JLC China Bunker Market Monthly Report (September, 2020)
Related: JLC China Bunker Market Monthly Report (July, 2020)
Related: JLC China Bunker Market Monthly Report (June, 2020)
Related: JLC China Bunker Oil Market Monthly Report (May, 2020)


Photo credit: JLC Network Technology Co Ltd
Published: 11 November, 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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