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BIMCO: High-sulphur fuel oil sales rebound after pre-IMO 2020 correction

‘[…] rise in scrubber-fitted ships has supported demand for HSFO and will remain until new solutions and future fuels are widely introduced,’ said Chief Shipping Analyst.

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International shipping association BIMCO on Thursday (29 April) published its observations regarding the rise in high sulphur bunker fuel sales post IMO-2020 and how it will affect the scrubber market; it was written by Peter Sand, Chief Shipping Analyst at BIMCO.

In the first quarter of 2021 high-sulphur fuel oil (HSFO) has been the only bunker fuel to experience year-on-year growth in Singapore, the world’s largest bunkering hub.

HSFO sales are up 47.2% from Q1 2020, reaching 3.1m tonnes. This is however still less than a third of high-sulphur fuel sales in Q1 2019, before the IMO 2020 Sulphur Cap came into force.

The 1 million tonne increase in HSFO sales exceeded the fall in low-sulphur fuel oil (LSFO) and marine gas oil (MGO) sales, though only marginally, with total bunker sales in Singapore up by 0.8% in Q1. Sales of MGO fell the most compared to a year earlier, down by 25.3% and accounting for just 8.7% of total bunker sales in Singapore in Q1. LSFO sales reached 8.6m tonnes, a 5.4% drop from Q1 2020, bringing its share of total bunker sales to 66.7%, slightly down from the 71.1% share it claimed at the start of last year.

HSFO on the rise across the board

A similar development in the share of bunker fuel sales can be seen in other bunkering hubs. In Fujairah, HSFO accounted for 16.9% of total bunker sales in Q1 2021. Here, LSFO dominated with a 78.6% market share.

In Panama, where total bunker sales fell by 7.2% in the first three months of this year compared with 2020, LSFO accounted for 71.6% of total bunker sales (down from 79.5% in Q1 2020). HSFO’s share has also risen from Q1 2020, to a 17.6% share, up from 7.1% in 2020, but nowhere near the dominance it enjoyed in Q1 2019.

“After the quick adjustment to the global sulphur cap, the decline in HSFO’s share of total bunker sales has stopped. Although its share is much lower than any time prior to Q4 2019, the steadily rise in scrubber-fitted ships has supported demand for HSFO and will remain until new solutions and future fuels are widely introduced on the industry’s path to decarbonisation,” says Peter Sand, BIMCO’s Chief Shipping Analyst.

“In addition to changing the share of fuel types being sold, the global sulphur cap has also resulted in larger bunkering hubs gaining an even larger market share, and recording growth in 2020 despite a drop in total bunker sales. This development was due to owners and charterers seeking to minimise risks by choosing the biggest bunker hubs in the face of uncertainty surrounding the new fuel types,” Sand says. 

Rising high-sulphur fuel sales match rise in scrubber take-up

The number of scrubber-fitted ships doubled in the thirteen months after the global sulphur cap came into force, fuelling a rise in high-sulphur fuel sales. There are currently 4,006 scrubber-fitted ships, up from 2,010 ships in January 2020.

Across the four major shipping segments an average of 24.1% of the fleet, when measured in DWT (and TEU for containers). The crude oil tanker fleet has the highest share, at 30.5%, while with only 13.8% of total capacity scrubber fitted the oil product tanker fleet has the lowest. At the start of 2020 the average share across these four fleets stood at just 12.9%.

The pace of scrubber fittings has slowed since its peak in January 2020, during which 259 ships with a total capacity of 33.4m DWT either had a scrubber installed or were delivered with one already on board. In the first three months of this year 228 ships have joined the number of scrubber-fitted ships each month, totalling 30.5m DWT in the first quarter.

Of the 228 ships fitted with scrubbers so far this year, two-thirds (153) were new-builds being delivered with a scrubber already fitted, with only 75 ships being retrofitted. This is almost the exact opposite of the shares in 2020, when only 27.1% were newbuilds (479), while the rest (1,289) were retrofits of the total 1,768 ships to have a scrubber installed. 

Will we see a second wave of scrubber installations?

Although the pace of scrubber installations has slowed, the economic case for a scrubber is still strong. After the ups and downs of 2020, the price spread between HSFO and LSFO has stabilised at an average of USD 100 per tonne in the major bunkering hubs.

In Singapore on 27 April, a metric ton of HSFO cost USD 388, leaving VLSFO USD 106 more expensive per metric ton. In comparison, on 1 January 2020 the price of HSFO was only USD 28 per metric ton lower than currently (USD 360 per tonne), but the spread was however three times higher as a metric ton of VLSFO cost USD 710 at the time.

Despite the ups and downs of the spread in 2020, when averaging the HSFO and VLSFO spread over the whole year, it stood at almost exactly USD 100 per metric ton (100.7).

“With the spread now stabilising at a more normal level, a scrubber investment still represents a solid economic decision for owners, as higher earning -, thanks to lower voyage costs – are enough to cover the initial cost as well as the running costs of the scrubber within a reasonable period,” says Sand.

“Low demand for certain oil products as a result of mobility restrictions has helped lower the price of LSFO. However, as demand for products such as jet fuel starts to recover, the HSFO-LSFO spread may well increase, solidifying the economic case for scrubbers.”

“A return to the high levels of scrubber installations that we saw at the end of 2019 and start of 2020 is however unlikely, as the majority of owners who wanted to retrofit their ships have now done so, and the majority of scrubbers being added to the fleet now come from newbuilds, Sand says.”


Photo credit and source:
BIMCO
Published: 30 April, 2021

 

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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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