The Zhoushan Bureau of Commerce in early August disqualified Zhoushan Free Zone Energy and Chemical Co., Ltd. (ZFZEC), a subsidiary of Zhejiang Herun Group, as a physical bunker supplier for Zhoushan port, according to an update seen by Manifold Times.
To date, ZFZEC is the first and only physical supplier who has been disqualified by the government at China (Zhejiang) Pilot Free Trade Zone.
The reason for the disqualification was due to poor marine fuel sales for a three-year period in a row, said the notice.
In terms of bunkering volume, ZFZEC was ranked amongst the last physical bunker suppliers at Zhoushan in 2018 and 2019; it recorded zero sales since 2020, according to Zhoushan government data.
ZFZEC was one of the first of four companies to be issued a bunkering license by the Zhoushan government in June 2017.
The remaining three are Zhejiang Petroleum Marine Fuels Co. Ltd, Zhejiang Pilot F.T.Z. CNPC and TAFO Marine Fuel Co., Ltd, and CEFC China Energy Company Limited (CEFC China).
ZFZEC’s parent company, Herun Group, is ranked among China’s top 500 private firms.
Herun has been present in the related business of bunkering supply such as oil trading, storage, supply and ocean shipping for over 30 years.
| Total Bunker Supply Volume at Zhoushan in 2019 | |
| Physical Suppliers | Volume (mt) |
| Sinopec Zhejiang Zhoushan Petroleum Co., Ltd | 1,393,000 |
| China Marine Bunker (Petro China) Co., Ltd. | 1,254,000 |
| Zhejiang Seaport International Trading Company Limited | 399,700 |
| Zhejiang Petroleum Marine Fuels Co. Ltd | 328,800 |
| China Shipping & Sinopec Suppliers Co., Ltd | 214,200 |
| Zhejiang Pilot F.T.Z. CNPC and TAFO Marine Fuel Co., Ltd | 186,200 |
| Consort Bunkers (Zhoushan) Co., Ltd | 131,400 |
| China Changjiang Bunker (Sinopec) Co., Ltd. | 65,400 |
| CEFC China Energy Company Limited | 62,500 |
| Zhoushan Marine Fisheries Co. | 28,500 |
| Zhoushan National Pelagic Fishery Base | 27,700 |
| Zhoushan Free Zone Energy and Chemical Co., Ltd. | 6,600 |
| ZheJiang Free Trade Zone PetroChina Fuel Oil Co. ,Ltd | 3,100 |
| TOTAL: | 4,101,300 |
Photo credit: Manifold Times
Published: 13 August, 2020
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Representatives of Veritas Petroleum Services, Maersk, INTERTANKO, ElbOil Singapore, and SDE International provide insight from their respective fields of expertise on what lies ahead.
