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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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Milestone

China: Yangpu records 27% on year increase in bunkering volumes from Jan to May

Latest bunker supplier at Yangpu port is Hainan Luhai Energy which received a license from the Danzhou Municipal People’s Government in April 2025.

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The Port of Yangpu located in Hainan Island recorded a 27% on year increase in bonded bunkering volume for the period between January to May 2025 due to local government initiatives, according to Danzhou Municipal People’s Government on 5 July.

During the five-month period, the port supplied 149,400 metric tonnes (mt) of bunker fuel to 288 international vessels, compared to 117,400 mt of marine fuel to 278 ships in the year before.

Explaining the 2025 figures, the government pointed out 145,400 mt of bonded bunker fuel to 275 vessels were delivered by bunkering firms under national licenses, while 4,000 mt of bonded marine fuel were sent by bunkering companies under Hainan licenses.

To date, there are four bunker suppliers operating at Yangpu port. The latest to join is Luhai Energy Technology Development (Hainan) Co., Ltd (陆海能源科技发展(海南)有限公司) which received a license from the Danzhou Municipal People’s Government in April 2025.

“In the future, we will continue to work hard to continuously optimise the bonded oil refuelling service system, increase policy publicity and promotion efforts, attract more bonded oil refuelling companies to settle in Yangpu, and continuously expand the scale of business, and promote the implementation of the bonded oil refuelling policy,” stated Li Leiming, a mid-level employee of the Yangpu Investment Promotion Bureau.

 

Photo credit: Chuanhaozi under Creative Commons Licences
Published: 14 July 2025

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Milestone

Singapore retains ranking as world’s top maritime centre for 12th consecutive year

Finds report jointly published by the Baltic Exchange and China’s Xinhua News Agency.

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Singapore bunker tankers and sky

Singapore on Friday (11 July) said it has retained its ranking as the world’s top maritime centre, marking the 12th consecutive year it has led the Xinhua-Baltic International Shipping Centre Development (ISCD) Index.

Jointly published by the Baltic Exchange and China’s Xinhua News Agency, the Xinhua-Baltic ISCD Index provides an independent benchmarking of the world’s leading maritime hubs.

It evaluates factors such as cargo throughput, port infrastructure, maritime services (including finance, law and shipbroking), and the overall business environment.

The index is closely monitored by shipping lines, port investors, and maritime service providers to track market competitiveness, and inform investment location and service development decisions.

Singapore retained its top position among 43 maritime cities and regions, underpinned by its consistent performance as one of the world’s busiest transhipment and bunkering hubs, and a well-established ecosystem of professional maritime services and expertise.

In 2024, Singapore handled 41.12 million twenty-foot equivalent units (TEUs) in container throughput – a record high – and saw total vessel arrival tonnage exceed 3 billion gross tons. The Port of Singapore also remains the world’s largest bunkering port, having supplied 54.92 million tonnes of marine fuel in 2024.

Home to more than 200 international shipping groups and a growing number of maritime technology start-ups, Singapore continues to strengthen its position as a global node for maritime innovation and enterprise.

This growing industry base is also creating new career pathways in areas such as port operations, digital systems management, automation, maritime law, and sustainability – as the sector transforms to meet the needs of a more digital and decarbonised future.

“We thank our industry partners, the research and enterprise community, and our unions who have been instrumental in Singapore’s journey to become a leading international maritime centre and global hub port,” said Ang Wee Keong, Chief Executive of the Maritime and Port Authority of Singapore.

“We will continue to build on this momentum by innovating and investing in digitalisation, green technologies, and workforce development to strengthen Singapore’s position as a trusted and future-ready international maritime centre.”

 

Photo credit: Manifold Times
Published: 14 July 2025

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“LNG London” marks 1,000 safe LNG bunkering ops in Rotterdam and Antwerp

Milestone is a tribute to the technical expertise and steadfast dedication of LNG London’s team, states Victrol.

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LNG London MT

The LNG London, a liquefied natural gas (LNG) bunkering vessel chartered by Shell, owned by LNG Shipping, and operated by Victrol recently completed over 1,000 safe LNG bunkering operations across the ports of Rotterdam and Antwerp.

“This landmark achievement underscores LNG London’s unwavering commitment to safety, reliability, and environmental stewardship as LNG rises to prominence as a lower-emission marine fuel compared to conventional fuel oil,” stated Victrol on Friday (11 July) over a LinkedIn update.

“With this milestone, LNG London reaffirms its pioneering role in promoting sustainable, lower-emission bunkering throughout the Amsterdam–Rotterdam–Antwerp (ARA) hub.”

Launched in June 2019, LNG London has a capacity of 3,000 m³, spans 110 m in length, and navigates inland waterways with ease—facilitating efficient LNG supply to both seagoing vessels and barges offshore-energy.

Victrol as the vessel’s operator, emphasises the outstanding performance of the crew and the vessel’s robust design. Built with stringent safety specifications, LNG London strives to maintain high operational standards. This milestone is a tribute to the team’s technical expertise and steadfast dedication.

Building on the good work of LNG London, Shell had also enhanced its bunkering network with the larger Energy Stockholm, an 8,000 m³ bunker vessel, now operating in Antwerp, Rotterdam, Zeebrugge, and Amsterdam.

Related: Europe: ‘LNG London’ bunkering vessel starts operations at Rotterdam
Related: “LNG London” conducts first ship-to-ship LNG bunkering operation at Rotterdam
Related: Bureau Veritas classifies Europe’s largest inland waterway LNG bunker barge
Related: Europe’s largest LNG bunkering barge on maiden voyage to ARA
Related: Shell takes delivery of Europe’s largest inland LNG bunkering vessel

 

Photo credit: Victrol
Published: 14 July 2025

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