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JLC China Bunker Fuel Market Monthly Report (February 2024)

China’s bonded bunker fuel sales decreased in February, due to a rise in bonded LSFO prices, as well as the Chinese New Year holiday and severe weather in the north, says Beijing-based JLC.

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JLC China Bunker Fuel Market Monthly Report (February 2024)

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for February 2024 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

China’s bonded bunker fuel sales fall in February

China’s bonded bunker fuel sales decreased in February, due to a rise in bonded low-sulfur fuel oil (LSFO) prices, as well as the Chinese New Year holiday and severe weather in the north.

The country sold about 1.50 million mt of bonded bunker fuel in the month, with the daily sales down by 11.80% month on month to 51,641 mt, JLC’s data shows.

The sales by Chimbusco, Sinopec (Zhoushan) and China ChangJiang Bunker (Sinopec) slipped to 500,000 mt, 570,000 mt and 26,000 mt in February, while those by suppliers with regional bunkering licenses dropped to 361,600 mt, down from 495,000 mt in January. At the same time, SinoBunker sold about 40,000 of bonded bunker fuel, unchanged month on month, the data indicates.

China’s bonded bunker fuel exports rally in December 2023

China’s bonded bunker fuel exports rallied in December 2023, because of a relatively low base a month earlier.

The country recorded about 1.59 million mt of bonded bunker fuel exports in the month, jumping by 16.18% month on month, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Heavy bunker fuel exports amounted to 1.51 million mt in the month, accounting for 94.85% of the total, while light bunker fuel exports settled at 81,900 mt, accounting for 5.15%.

Suppliers with national bunkering licenses exported roughly 1.17 million mt of bonded bunker fuel in the month, accounting for 73.32%, with Sinopec Fuel Oil and Chimbusco taking 67.63%. In the meantime, enterprises with regional licenses exported about 424,100 mt, occupying 26.68%.

The month-on-month increase in the exports was mainly ascribed to a relatively low base in November when Chinese refiners cut their bonded bunker fuel exports to a ten-month low.

However, tighter export quotas and low-sulfur fuel oil (LSFO) supply limited the growth in December’s bonded bunker fuel exports.

On a year-on-year comparison, China’s bonded bunker fuel exports surged by 32.32% in December.

China exported a total of 19.66 million mt of bonded bunker fuel in 2023, growing by 3.06% from the previous year, accelerating from a rise of 1.09% in January-November.

(Note: There is no breakdown of the country’s exports for January 2024 yet, though the GACC has announced the combined exports for January and February.)

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Domestic-trade heavy bunker fuel demand plunges in February

Domestic-trade heavy bunker fuel demand plunged in February, as shipping demand was tepid during the Chinese New Year holiday and bunker fuel was still overpriced. Domestic-trade heavy bunker fuel demand was estimated at 360,000 mt in the month, a slump of 70,000 mt or 16.28% from a month earlier, JLC’s data shows.

At the same time, domestic-trade marine gas oil (MGO) demand settled at 120,000 mt, stable month on month, the data indicates. Domestic-trade light bunker fuel demand leveled off, and the inland shipping market stayed lukewarm.

Bunker Fuel Supply

China’s bonded bunker fuel imports tumble in December

China’s bonded bunker fuel imports stood at 315,200 mt in December, a slump of 41.29% month on month and 23.92% year on year, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Though domestic LSFO output declined further, most distributors continued to cut their imports in the month amid high import costs.

South Korea topped all suppliers by shipping 95,400 mt to China in December, accounting for 30.26% of the latter’s total imports, while Malaysia climbed to the second place with 88,600 mt, accounting for 28.11%. Iraq and Japan ranked third and fourth with 86,600 mt and 30,700 mt, making up 27.46% and 9.73% respectively. 

Russia slipped to the fifth place with 13,000 mt, occupying 4.12%, while Singapore fell to the sixth place with only 1,000 mt, accounting for 0.32%.

China’s bonded bunker fuel imports are expected to move lower in January 2024 because domestic LSFO production will return to normal after the release of the first batch of LSFO export quotas for this year.

(Note: There is no breakdown of the country’s imports for January 2024 yet, though the GACC has announced the combined imports for January and February.)

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Domestic-trade bunker fuel supply tightens in February

Domestic-trade heavy bunker fuel supply tightened in February, as blenders slowed down production amid the Chinese New Year holiday.

Chinese blenders supplied about 400,000 mt of domestic-trade heavy bunker fuel in the month, a decline of 40,000 mt or 9.09% from January, JLC’s data shows. Traders and shipowners reduced purchases after finishing pre-holiday restocking, forcing blenders to reduce their output at the beginning of the month. Most blenders continued to lower output during the holiday, and some even suspended production. Heavy bunker fuel supply did not grow much after the holiday as some blenders were still on vacation, also because of relatively tight supply of blendstock.

Similarly, domestic-trade marine gas oil (MGO) supply diminished to 130,000 mt in the month, down by 10,000 mt or 7.14% month on month, the data shows. Refineries’ enthusiasm for MGO production was still low in February, as domestic MGO prices dipped and cargo delivery was not smooth amid bad weather.

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JLC Network Technology Co., Ltd is recognized as the leading information provider in China. We specialized in providing the transparent, high-value, authoritative market intelligence and professional analysis in commodity market. Our expertise covers oil, gas, coal, chemical, plastic, rubber, fertilizer and metal industry, etc.

JLC China Bunker Fuel Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market, demand, supply, margin, freight index, forecast and so on. The report provides full-scale & concise insight into China bunker oil market.

All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise redistributed without prior authorization from JLC.

Related: JLC China Bunker Market Monthly Report (January 2024)
Related: JLC China Bunker Market Monthly Report (December 2023)
Related: JLC China Bunker Market Monthly Report (November 2023)
Related: JLC China Bunker Market Monthly Report (October 2023)
Related: JLC China Bunker Fuel Market Monthly Report (September 2023)
Related: JLC China Bunker Market Monthly Report (August 2023)
Related: JLC China Bunker Market Monthly Report (July 2023)
Related: JLC China Bunker Market Monthly Report (June 2023)
Related: JLC China Bunker Fuel Market Monthly Report (May 2023)
Related: JLC China Bunker Market Monthly Report (March 2023)
Related: JLC China Bunker Market Monthly Report (February 2023)
Related: JLC China Bunker Market Monthly Report (January 2023)

Note: China-based commodity market information provider JLC Technology has been providing Singapore bunkering publication Manifold Times China bunker volume data since 2020. Data from earlier periods are available here.

 

Photo credit: JLC Network Technology
Published: 11 March 2024

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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.”

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Photo credit: DNV
Published: 4 September, 2026

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