Business
China bonded bunker fuel sales dip 1.5% on year from Jan to May
Domestic LSFO production and market price fluctuations may be main factors in whether bonded bunker fuel volume can achieve a breakthrough for 2022.
The following article published by Manifold Times on 5 July was sourced from China’s domestic market through a local correspondent. An online translation service was used in the production of the current editorial piece:
China sold 8.295 million metric tonnes (mt) of bonded bunker fuel from January to May 2022, down 1.5% year-on-year, according to China-based consultancy LongZhong on Friday (24 June).
In comparison, the world’s largest marine bunkering hub Singapore's bonded fuel supply totalled 19.163 mt, a year-on-year decrease of 9.4%, during the same period.
Figure 1 Comparison of the fuel supply of bonded ships in Singapore and China from 2017 to 2022
In the second quarter of the year, low sulphur fuel oil availability continued to be tight while price rose, which made it difficult to significantly boost bonded bunker fuel sales.
Figure 2 2021-2022 China Bonded Ship Fuel Supply Monthly Sales
From the perspective of supply companies, the bunkering volume of Sinopec Zhoushan and Chimbusco accounted for 92% of the total bunkering volume, occupying a major market share.
Figure 3 Market share of Chinese bonded ship fuel supply companies from January to May 2022
In terms of oil supply varieties, from January to May 2022, low-sulphur fuel oil in China's bonded ships accounted for 88%, and the proportion of high-sulphur fuel oil was 6%. During the same period last year, its proportion was 88.8% and 6.5% respectively.
The proportion of low-sulphur fuel oil in Singapore's total oil supply to ships is 64.5%, and high-sulphur fuel oil accounts for 26.9%. During the same period last year, the proportion was 66.8% and 24.6% respectively.
The fuel supply of bonded ships in Zhoushan, Zhejiang Province reached 2.36 million mt, an increase of 18% year-on-year. It accounted for 28.5% of the national oil supply of bonded vessels, making it the largest domestic bonded ship fuel supply port in China. The market share of local licensed enterprises in Zhoushan accounted for 10.6% of the national market share and 37% of the local bonded direct supply in Zhoushan.
In addition, the oil supply of bonded vessels in Qingdao Port increased rapidly from January to May, with a year-on-year increase of more than 40%. At present, domestic resources have become an important factor in whether suppliers can achieve breakthroughs in supply of bonded vessels. In addition, under high oil prices, there is great resource pressure, which is also a factor restricting business development.
Figure 3 Comparison of oil supply in key ports of China's bonded ship oil supply in 2021-2022
From January to May 2022, bonded fuel oil imports shrank significantly. The total volume of fuel oil imports was 4.4036 million mt, down 4.55% year-on-year. Bonded fuel oil imports account for 31% of the oil consumption of bonded ships.
From January to May, about 84% of China's bonded low-sulphur ship fuel oil consumption was from domestic refinery resources, an increase of 22.5% year-on-year.
Figure 5 China's bonded fuel oil import and consumption trends
In June, it was still difficult for the oil supply of local bonded bunker suppliers to rise significantly due to high prices. It is expected that the oil supply of China's bonded ships may reach about 10 million mt in the first half of the year, a year-on-year decline of about 2%.
In the second half of the year, domestic low-sulphur fuel oil production and market price fluctuations may be the main factors in whether the oil supply of bonded bunkering ships can achieve a substantial breakthrough for 2022.
Photo credit: Dimitry Anikin on Unsplash
Published: 5 July, 2022
Milestone
Singapore retains titles as Best Global Seaport and Best Seaport in Asia
Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 AFLAS Awards.
The Maritime and Port Authority of Singapore on Friday (29 September) said the Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 Asian Freight, Logistics and Supply Chain (AFLAS) Awards.
These accolades recognise the contributions by the Port of Singapore serving as a key node in the global supply chain, and Singapore’s leadership in driving maritime decarbonisation and transformation.
The annual AFLAS Awards is organised by freight and logistics publication, Asia Cargo News, to honour leading service providers in the supply chain community for demonstrating leadership as well as consistency in service quality, innovation, customer relationship management and reliability. Winners were determined by votes cast by readers of the publication.
Mr Chee Hong Tat, Acting Minister for Transport and Senior Minister of State for Finance, said: “Singapore is honoured to be named the Best Global Seaport and Best Seaport in Asia. These awards are the result of the shared effort and strong collaboration between the Government, industry, unions and workers. We will continue to grow our port as an efficient, sustainable, and trusted node in global supply chains.”
Mr Teo Eng Dih, Chief Executive of MPA, said: “These awards are testament to the partnership and collaboration between Maritime and Port Authority of Singapore (MPA) with industry and international partners, the research and enterprise community, as well as unions. MPA remains committed to fostering an environment that encourages enterprise, innovation, and talent development.”
“We will continue to work with our partners to enhance Singapore’s connectivity, advance digitalisation efforts, and accelerate the decarbonisation of international shipping in line with the 2023 IMO strategy on reduction of GHG emissions from ships.”
Photo credit: Maritime and Port Authority of Singapore
Published: 29 September, 2023
Employment
Melvin Lum appointed as KPI OceanConnect Global Accounts Commercial Director in Singapore
Lum will take on the position of Commercial Director from Thomas Lee who was recently promoted to Head of APAC in a management restructure within KPI OceanConnect.
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