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Argus Media: Viewpoint – Bunker demand could rebound after Covid-19 vaccine

In Panama, VLSFO sales have increased four months in a row to 314,731t as of October, according to the latest data- a 38pc increase from sales in June 2020, it said.

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Luis Gronda of global energy and commodity price reporting agency Argus Media on Thursday (24 December) published a summary on the various market forces that could increase demand for bunker fuel in Latin America following the release of the Covid-19 vaccine:

Latin American bunker demand could rebound in 2021 as the Covid-19 vaccines are distributed worldwide and pandemic-related lockdowns are eased.

Price levels for bunker fuel products such as high-sulphur fuel oil (HSFO) and very low-sulphur fuel oil (VLSFO) could rise close to pre-pandemic levels alongside prices in other regions as demand continues to rebound compared to the height of the pandemic in spring of 2020.

The monthly average price for VLSFO in Buenos Aires, Argentina, was assessed at $657.5/t in January and $563.5/t in February of 2020, according to Argus data. That declined to as low as $290/t in May before rebounding going into the summer months. But this jump has not reached price levels seen before the Covid-19 outbreak. That could happen in 2021, depending on how quickly Latin American countries are able to access the vaccines.

Another sign of a rebound that could continue into 2021 is in the bunker sales figures at major Latin American ports. In Panama, VLSFO sales have increased four months in a row to 314,731t as of October, according to the latest data from the Panama Maritime Authority (PMA). That is a 38pc increase from sales in June 2020, but it has not yet reached pre-pandemic levels. VLSFO sales were as high as 388,307t in January 2020, the PMA data shows.

A recovery from the pandemic in the US would likely be beneficial to Panama as it could resume importing bunker fuel from the US Gulf coast at increased levels. Panama has traditionally purchased most of its fuel from the US Gulf, but it has expanded its sourcing from other countries that have VLSFO, such as Argentina and Brazil in Latin America and the Netherlands and Estonia in Europe, data from Vortexa shows. That data also showed 112,600t of fuel oil imported from the Netherlands and 39,600t from Estonia so far in 2020, after Panama did not buy fuel oil from either country in 2019. The fuel oil was likely low-sulphur.

Panama also propped up VLSFO imports from St Eustatius and the Bahamas in the Caribbean. St Eustatius and the Bahamas do not have refineries and all fuel there is imported and aggregated in their oil storage terminals before being re-exported. The VLSFO re-exported to Panama from St Eustatius and the Bahamas originated mostly from Argentina and Brazil. About 300,782t of fuel oil came from St Eustatius to Panama so far this year compared to 78,100t in 2019, according to Vortexa.

HSFO could cruise to a rebound

The possible restart of cruise sailings could be a boon to HSFO demand in the Americas as cruise companies have many ships in their fleet that are fitted with scrubbers. This allows them to continue using HSFO while remaining compliant with the International Maritime Organization’s 0.5pc sulphur restriction that started in 2020.

The major US cruise companies — Carnival, Royal Caribbean and Norwegian Cruise Line — are currently developing plans to resume voyages in 2021. They must enforce policies to prevent the spread of Covid-19, including testing crew members, passengers and a mask mandate onboard its ships, in order to receive permission from the Centers of Disease Control and Prevention to resume cruises.

This resumption would drive up HSFO demand in Latin American and Caribbean countries that these cruise ships frequent including Panama, Bahamas and Jamaica. There could also be an avenue for HSFO exports from Venezuela to the US to restart depending on what stance the incoming administration of president-elect Joe Biden will take towards Venezuela and the sanctions currently active that block oil exports.

In 2018, before the sanctions, Venezuela exported 8.6mn t of residual fuel oil and 2.9mn t of that went to the US, according to Vortexa. Venezuelan exports dropped to 4.3mn t the following year after US sanctions began.


Photo credit and source:
Argus Media
Published: 28 December, 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.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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