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China: Structural and operational upgrades lead to 15% increase in bunker sales at Zhoushan port

11 Jan 2021

The Zhoushan Bonded Marine Fuel Association on Saturday (9 January) reported bonded bunker sales at Zhoushan totalling 4.724 million metric tonnes (mt) in 2020, translating to 7,517 vessels receiving bunkers and a 15.14% year on year increase compared to 2019. 

The association attributes the port’s performance to the following factors:

  • Government preferential support policies and innovative regulatory measures for various departments to be able to coordinate simultaneously in order to resolve any issues that could arise during the bunkering process.
  • The maritime department abolished the advance declaration of bunker as dangerous cargo, integrated the management of each anchorage to reduce the waiting time for vessels, reduced pilotage fees on vessels receiving bunkers, created a “whitelist” system for bunker supply tankers and put into service “Zhoushan type” bunker vessels.
  • The commerce department revised taxation and regulatory measures such as export and tax rebate policies to support the physical supply business and the implementation of bunker fuel futures deliveries.
  • At the end of the year, various departments worked together to develop a more convenient custom clearance “refuel and go” model for large vessels.

The association also published the following as the key highlights for 2020:

  • The four main anchorages of Tiaoqimen, Xiazhimen, Mazhi and Xiushan have provided fuel to 2,405 vessels on international voyages, with a fuelling volume of 1,866,400 metric tonnes, accounting for 39.5% of the port’s total fuel supply.
  • In recent years, 21 new bunker fuel anchors have been added to anchorages such as Xiazhimen Anchorage, Mazhi Anchorage, Aoshan Joint Inspection Anchorage, Xiushan Anchorage and Tiaoqimen Outer Anchorage, covering the southern, central and northern parts of the Zhoushan port area.
  • The electronic Anchorage Service Bunker Delivery System 2.0 platform was put into operation at the outer port limit. The system is supported by big data to provide international customers with a better service guarantee and efficiency.
  • The number of bunker supply licenses at Zhejiang Free Trade Zone has continued to increase and operations now include cross-port bunkering operations with the Port of Shanghai. 
  • After witnessing positive results from its preferential policies in 1H 2020, the government granted export licenses to private refineries. It then regularly held conferences and special meetings with bunker supply companies and oil trading companies to facilitate trade, ensure supply and tap on large orders.
  • As of the end of December 2020, bunker fuel exported from local refineries accounted for 1.2 million mt (25%) of Zhoushan’s supply. Refineries within Zhoushan account for 560,000 mt of bunker fuel.
  • The customs and maritime authority have accelerated customs clearance procedures for fuel oil imports at Zhoushan Port. 
  • Various innovative regulatory measures such as oil blending, futures delivery, and transfer of bonded fuel in the warehouses have been put in place to make trade more adaptable to the different needs of bunker traders in the Zhejiang Free Trade Zone.

 “As 2021 remains uncertain, it is necessary to continue to maintain our strengths, adhere to international benchmarking, continually innovate, and strengthen the joint development of the Yangtze River Delta, in order to strengthen the comprehensive supporting capabilities of our maritime services,” said the Zhoushan Port Comprehensive Protection Zone Management Committee in a statement.

“We will continue to strengthen the protection of our oil resources, promote the normalisation of blending business, and expand the delivery of fuel oil futures. 

“In order to achieve these goals, we will have to improve our infrastructure which will include the formal use of the Qushan and Luhuashan anchorages, and commence the night-time bunker supply services at the Tiaoqimen anchorage. 

“We will also promote cross-port fuel supply operations and make every effort to reach the 6 million mt bunker sales target set by the government for 2021.”

Related: Shanghai INE inks agreement with PetroChina for LSFO futures overseas delivery
Related: Shanghai and Zhoushan port complete first cross-port bunkering operation
Related: First bunker tanker purpose-built for Zhejiang Free-Trade Zone begins fuel delivery ops
Related: China to grant export quotas for refined oil products to private refineries

Photo credit: Zhoushan Bonded Marine Fuel Association
Published: 11 January, 2021

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