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JLC China Bunker Fuel Market Monthly Report (June 2024)

China’s bonded bunker fuel sales rebounded as enterprises offered discounts to achieve sales targets for first half of 2024, easing supervision of bunker barges in some regions and increasing barge capacity at some ports.

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JLC China Bunker Fuel Market Monthly Report (June 2024)

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

China’s bonded bunker fuel sales rebound in June

China’s bonded bunker fuel sales rebounded in June, as enterprises offered some discounts to achieve sales targets for the first half of this year, also because of easing supervision of bunker barges in some regions and increasing barge capacity at some ports.

The country sold about 1.78 million mt of bonded bunker fuel in the month, with the daily sales jumping by 11.55% month on month to 59,260 mt, JLC’s data shows.

Bonded bunker fuel sales by Chimbusco, Sinopec (Zhoushan), SinoBunker and China Changjiang Bunker (Sinopec) rose to 510,000 mt, 640,000 mt, 65,000 mt and 40,000 mt, while those by suppliers with regional bunkering licenses climbed to 522,800 mt, the data indicates.

China’s daily bonded bunker fuel exports drop in May

China’s daily bonded bunker fuel exports dropped in May, because of still tepid bunkering demand, despite larger LSFO production.

The country exported about 1.74 million mt of bonded bunker fuel in the month, with the daily exports at 56,268 mt, slipping by 2.61% month on month, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

In breakdown, heavy bunker fuel exports amounted to 1.66 million mt in May, accounting for 95.18% of the country’s total exports. Meanwhile, light bunker fuel exports fell to 84,000 mt, accounting for 4.82%.

Dragging down the daily exports, bunkering demand was relatively weak and the barge capacity at Chinese ports remained tight amid lingering supervision of bunker barges.

On the other hand, Chinese refiners ramped up their LSFO production amid new export quotas, unit restarts and better margins, limiting the decline in the exports. These refiners produced about 1.31 million mt of LSFO in May, with the daily output at 42,268 mt, up 3.01% from April, JLC’s data indicates.

On a year-on-year comparison, China’s bonded bunker fuel exports descended by 10.06% in May.

In January-May, China tallied a total of 7.91 million mt of bonded bunker fuel exports, a drop of 5.46% from a year earlier, speeding up from a 4.07% decline in January-April. Specifically, heavy bunker fuel exports settled at 7.46 million mt in the five months, accounting for 94.25%, while light bunker fuel exports totaled 455,400 mt, occupying 5.75%.

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Domestic-trade heavy bunker fuel demand goes lower in June

Domestic-trade heavy bunker fuel demand slipped to 380,000 mt in June, contracting by 10,000 mt or 2.56% month on month, JLC’s data shows. Though restocking demand recovered after the rainy season in South China, shipowners were cautious about purchases amid a surplus of ships and a decline in freight rates.

At the same time, domestic-trade light bunker fuel demand was estimated at 140,000 mt, without change from the previous month, the data indicates. Trade in light bunker fuel remained relatively brisk, as demand from power generation was seasonally strong.

Bunker Fuel Supply

China’s bonded bunker fuel imports fall again in May

China’s bonded bunker fuel imports fell again in May, as domestic HSFO inventory was still high and LSFO supply increased.

The country imported about 309,800 mt of bonded bunker fuel in the month, down by 9.15% from the previous month and 12.24% from a year earlier, JLC estimated, with reference to data from the GACC.

Bonded distributors in East China were still under high inventory pressure as downstream HSFO consumption continued to decelerate, and they further reduced their bonded HSFO imports. The barge capacity at local ports stayed relatively tight, depressed by lingering supervision of bunker barges.

China’s bonded LSFO imports also decreased, as domestic refiners boosted their LSFO production after the country released new quotas on LSFO exports in early May. China’s LSFO output amounted to 1.31 million mt in May, with the daily output at 42,268 mt, up by 3.01% month on month, JLC’s data shows.

China’s bonded MGO imports did not change much in May.

Malaysia overtook Singapore as the largest bonded bunker fuel supplier to China in May. Malaysia shipped 100,400 mt of bonded bunker fuel to China in the month, accounting for 32.41% of the latter’s total. Singapore and Russia slipped to the second and third place with 100,000 mt and 67,200 mt, accounting for 32.29% and 21.69% respectively. South Korea came fourth with 42,200 mt, making up 13.61%.

In the first five months, China imported a total of 1.62 million mt of bonded bunker fuel, growing by 15.46% from the same months in 2023, slowing down from a leap of 24.80% in January-April.

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Domestic-trade heavy bunker fuel supply declines further

Domestic-trade bunker fuel supply declined further in June, as the availability of low-sulfur residual oil decreased and downstream shipping demand was still sluggish. Chinese blenders supplied about 400,000 mt of heavy bunker fuel in the month, a cut of 10,000 mt or 2.44% from a month earlier, JLC’s data shows.

On the flip side, domestic-trade MGO supply came in at 160,000 mt in the month, an increase of 10,000 mt or 6.67% month on month, the data shows. Refineries’ enthusiasm for MGO production was slightly boosted by stronger diesel prices.

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Bunker Prices, Profits

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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 Fuel Market Monthly Report (May 2024)
Related: JLC China Bunker Market Monthly Report (April 2024)
Related: JLC China Bunker Market Monthly Report (March 2024)
Related: JLC China Bunker Fuel Market Monthly Report (February 2024)
Related: JLC China Bunker Market Monthly Report (January 2024)

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 July, 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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