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Integr8 Fuels: Zhoushan as a new Far East bunker hub

Zhoushan is becoming the key port for bunker-only calls in China, where they plan to sell 7 million tons of bonded fuel via 11 suppliers in 2020, reads report.

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Integr8 Fuels, the bunker trading and brokerage arm of Navig8, on Thursday (14 May) published an analysis on China’s progress into turning Zhoushan Port into a self-sufficient bunkering hub; it was written by Senior Research Analyst, Anton Shamray:

For decades Singapore has been the gateway to Asia, a major hub offering bunkering as well as other various shipping services. There have been a number of attempts to rival it, particularly when it comes to bunkering, however bunker sales in Singapore remain strong, at around 50 million tons per annum out of the global total of 300 million tons.

Recently, however, certain developments in China and particularly around Zhoushan mean, while unlikely to fully rival Singapore, it may become an attractive bunkering alternative for some.

China as an importer of fuel oil

For a long time China imported fuel oil to help meet its domestic consumption, including bunker sales and as a feed for the secondary refinery units. The consumption as well as the sales tax were applicable on all bunker sales, and given that the majority of fuel oil was imported from Singapore, this was evident in the premium at which bunker fuel was priced in China.

Figure 1 shows the Zhoushan HSFO price premium to Singapore. Zhoushan has the share of around 30% of all bunker deliveries in China.

Integr8 Fuels figure 1

For the most of 2018 the premium held at around $10-15/mt, widening significantly in 2019 due to a number of factors.

However, this is now changing as the Chinese government has a vision of creating a bunkering and a service hub in the port of Zhoushan.

Certain steps towards achieving this goal have already been made and the market has reacted accordingly.

Creating a bunker and service hub

In an attempt to promote Zhoushan as a bunker and service hub, a free trade zone was established in 2017. This helped reduce the customs clearance time to avoid delays in supplying vessels.

Further to this in July 2018, a country-wide tax incentive was introduced for marine fuel blending using imported feedstocks. Zhoushan benefited the most as, unlike many other Chinese ports, it boasts substantial storage and blending capacity and there is more under construction. Access to storage was one of the key factors which enabled Singapore to develop as a large bunkering hub.

This, however, was still not enough to encourage Chinese refiners and blenders, who had the capacity but no favourable regulatory framework, to produce more marine fuel to cover domestic and potentially foreign demand.

In February 2020 tax rebates started to apply in China for the sale of marine fuels, increasing the regional competitiveness of domestically produced fuels. Major Chinese refiners announced plans to ramp up VLSFO production amounting to over 20 million tons of VLSFO production in 2020, in line with the annual Chinese domestic and bonded bunker demand.

Zhoushan is increasingly becoming the key port for bunker-only calls in China, where they plan to sell 7 million tons of bonded fuel via 11 suppliers in 2020, up from 3.6 million tons in 2018. Such an increase brings Zhoushan closer to Rotterdam and Fujairah by volume.

These developments pushed the price of VLSFO in Zhoushan lower (Figure 2), raising its competitiveness against other regional ports, including Singapore.

Integr8 Fuels figure 2

With the introduction of tax rebates and increased local production, average monthly VLSFO prices in Zhoushan moved from over $20/mt above Singapore early this year to a discount more recently. This trend is likely to continue as 10 million tons of VLSFO quotas for bonded sales have just been released; an extra 5 million tons may be issued later this year, potentially replacing imports.

Zhoushan bunker sales growing

There is already a solid base for the increased Chinese VLSFO production and sales from Zhoushan, supporting the government intention to create a vessel service hub. This is already visible as bunker enquiries and sales are up.

As an example, Figure 3 shows the cumulative growth in the number of stems Integr8 Fuels concluded in Zhoushan.

Integr8 Fuels figure 3

The Zhoushan growth has also been due to the favourable calling fee policies. With two bunker anchorages, inner and outer, the outer anchorage is free of fees, which makes it similar to Singapore OPL. The inner anchorage charges half of the pilotage fee for bunker-only calls and none if the outer anchorage is unavailable due to bad weather, although other taxes may still apply.

It is understood that the first foreign-flagged vessel was supplied with VLSFO at the Zhoushan outer anchorage in mid-December and many more vessels have followed since.

All these developments increase the attractiveness of Zhoushan as a bunker and vessel services port. There have already been reports of vessels, previously used to bunker elsewhere, deviating to Zhoushan due to the growing price difference. More calls at Zhoushan will help recognise it as a reliable bunker and supply option in the maritime community.

Important decisions and steps have already been made towards reaching China’s goal of being self-sufficient in bunker fuel production and supply and developing Zhoushan as a key bunkering and service location in the Far East.


Photo credit and source:
Integr8 Fuels
Published: 15 May, 2020

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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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