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JLC China Bunker Market Monthly Report (August 2023)

Country sold roughly 1.80 million mt of bonded bunker fuel in the month, with the daily sales rebounding by 11.80% from the previous month to about 58,065 mt, JLC’s data indicates.

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Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for August 2023 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

China’s bonded bunker fuel sales rally in August

China’s bonded bunker fuel sales rallied in August, because of multiple factors.

The country sold roughly 1.80 million mt of bonded bunker fuel in the month, with the daily sales rebounding by 11.80% from the previous month to about 58,065 mt, JLC’s data indicates.

The sales by Chimbusco, Sinopec Zhoushan, SinoBunker and China ChangJiang Bunker (Sinopec) were 580,000 mt, 650,000 mt, 80,000 mt and 40,000 mt, respectively. Meanwhile, suppliers with regional bunkering licenses tallied about 450,000 mt of bonded bunker fuel sales.

Though the negative impact of bad weather lingered in Zhoushan and Ningbo, more shipowners came to refuel as bonded bunker fuel prices in the two regions were more competitive than those in Singapore. Meanwhile, the barging capacity at Shandong ports recovered to some degree, which also drove up the sales. On the other hand, however, the barging capacity at southern ports was insufficient amid tighter customs inspections, leading to a dip in the sales in South China.

China’s bonded bunker fuel exports drop in July

China’s bonded bunker fuel exports dropped in July, because of inclement weather and some other factors, despite a modest increase in domestic low-sulfur fuel oil (LSFO) production.

The country exported about 1.62 million mt of bonded bunker fuel in the month, down by 20.82% month on month and 4.63% year on year, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Specifically, heavy bunker fuel exports amounted to about 1.53 million mt, accounting for 94.70% of the total, while light bunker fuel exports settled at 85,700 mt, making up 5.30%.

Regarding the exports by supplier, enterprises with national bunkering licenses exported roughly 1.30 million mt, accounting for 80.73% of the country’s total, with Sinopec Fuel Oil and Chimbusco taking 71.68%. Meanwhile, enterprises with regional licenses exported 311,500 mt, accounting for 19.27%, with PetroChina Fuel Oil (Zhoushan, Shanghai and Guangzhou) taking 194,800 mt which occupied 12.07% of China’s exports and 62.54% of regional suppliers’ total.

Bunkering business at some Chinese ports was disturbed by rains and typhoons, dragging down China’s bonded bunker fuel exports. Meanwhile, some shipowners’ refueling demand was also depressed by bad weather, which added to the downward pressure on the exports.

On the other hand, domestic bunker fuel supply increased moderately amid larger LSFO production, putting a cap on the decline in the exports. China produced about 1.35 million mt of LSFO in July, up by 61,000 mt or 4.73% month on month, with the daily output up by 1.35% to 43,548 mt, JLC’s data shows.

In the first seven months, China’s bonded bunker fuel exports totaled about 12.03 million mt, growing by 6.38% from the same months in 2022, slowing down from a boost of 8.32% in the first six months.

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Domestic-trade heavy bunker fuel demand climbs further in Aug

Domestic-trade heavy bunker fuel demand climbed further in August, as most shipowners resumed voyages after typhoons and bullish sentiment popped up in the shipping market. Domestic-trade heavy bunker fuel demand increased to 330,000 mt in the month, up by 20,000 mt or 6.45% from the previous month, JLC’s data shows.

On the contrary, domestic-trade light bunker fuel demand shrank as continuously rising prices somewhat deterred buyers. Domestic-trade light bunker fuel demand settled at 130,000 mt in August, descending by 10,000 mt or 7.14% month on month.

Bunker Fuel Supply

China boosts bonded bunker fuel imports from Russia in July

China sharply boosted its bonded bunker fuel imports from Russia in July, because of large discounts on Russian cargoes.

Russia became the biggest bonded bunker fuel supplier to China in the month, supplying 275,000 mt to the latter, surging by 253.02% year on year and accounting for 82.34% of China’s total imports, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC). Chinese importers placed more orders for cargoes from Russia, because of significant price advantages for Russian cargoes.

Japan replaced Singapore as the second largest supplier by shipping 46,300 mt of bonded bunker fuel to China, rising by 18.72% month on month and accounting for 13.86% of China’s total.

South Korea remained in the third place with 10,700 mt, accounting for 3.20%, despite a plunge from 70,900 mt in June 2023. Meanwhile, inflows from Singapore tumbled to 2,000 mt, rapidly down from 140,100 mt in the previous month, sending the country to the fourth place. The imports accounted for 0.60% of the total.

Despite an upsurge in imports from Russia and Singapore, China’s total bonded bunker fuel imports dropped to 334,000 mt in July, a cut of 26.33% month on month and 5.28% year on year. Underlying the decline was an increase in domestic low-sulfur fuel oil (LSFO) output and relatively high freight rates for imported cargoes.

Domestic LSFO supply increased as Chinese refiners ramped up their production to quicken the utilization of export quotas, and production basically met demand for low-sulfur bunker fuel. China’s LSFO output settled at 1.35 million mt in the month, gaining 61,000 mt or 4.73% month on month, with the daily output up by 1.35% to 43,548 mt, JLC’s data shows.

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Domestic-trade heavy bunker fuel supply increases in Aug

Chinese blenders supplied about 370,000 mt of domestic-trade heavy bunker fuel in August, an increase of 10,000 mt or 2.78% from a month earlier, JLC’s data shows. Blenders bought more low-sulfur residual oil as blendstock amid lower prices, and they continued to raise their bunker fuel output when downstream buyers increased purchases with a bullish attitude.

At the same time, domestic-trade marine gas oil (MGO) supply stabilized at 170,000 mt. Light bunker fuel supply was still relatively abundant amid good coking margins.

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Bunker Prices, Profits

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Editor
Yvette Luo
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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 (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)
Related: JLC China Bunker Market Monthly Report (December 2022)
Related: JLC China Bunker Market Monthly Report (November 2022)
Related: JLC China Bunker Market Monthly Report (October 2022)
Related: JLC China Bunker Market Monthly Report (September 2022)
Related: JLC China Bunker Market Monthly Report (August 2022)
Related: JLC China Bunker Market Monthly Report (July 2022)
Related: JLC China Bunker Market Monthly Report (June 2022)
Related: JLC China Bunker Market Monthly Report (May 2022)
Related: JLC China Bunker Market Monthly Report (April 2022)
Related: JLC China Bunker Market Monthly Report (March 2022)
Related: JLC China Bunker Market Monthly Report (February 2022)
Related: JLC China Bunker Market Monthly Report (January 2022)

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 that period is available here.

Photo credit: JLC Network Technology
Published: 13 September, 2023

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Decarbonisation

SMW 2024: Maritime industry on track to adopt mid-term decarbonisation measures, says IMO chief

Safety, inclusion and transparency will be key areas for Mr Arsenio Dominguez’s tenure as Secretary-General of the International Maritime Organization.

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SMW 2024: Maritime industry on track to adopt mid-term decarbonisation measures, says IMO chief

The article ‘Maritime industry on track to adopt mid-term decarbonisation measures: IMO chief’ was first published on Issue 1 of the Singapore Maritime Week 2024 Show Dallies; it has been reproduced in its entirety on Singapore bunkering publication Manifold Times with permission from The Nutgraf and the Maritime and Port Authority of Singapore:

Toh Wen Li
[email protected]

The maritime industry is “on track” to roll out decarbonisation measures by 2025 as set out by the International Maritime Organization, said its new chief Arsenio Dominguez.

“We are on track to adopt mid-term measures by late 2025 to cut greenhouse gas (GHG) emissions, to reach net zero targets,” said Mr Dominguez, who took over as IMO Secretary-General in January.

In 2023, the IMO released a revised GHG strategy to reach net-zero emissions from shipping by or around 2050 – far more ambitious than its 2018 initial GHG strategy, which aimed only to cut emissions by at least 50 per cent compared to 2008.

“These will help us progress towards achieving netzero GHG emissions by or around 2050, with indicative checkpoints to reach by 2030 (cut GHG emissions by at least 20 per cent, striving for 30 per cent), and 2040 (cut GHG emissions by at least 70 per cent, striving for 80 per cent).”

Mr Dominguez, who will be speaking on the opening day of the 18th edition of SMW, also emphasised the need to keep seafarers safe against the backdrop of heightened geopolitical tensions. He said the attacks on ships in the Red Sea have far-reaching economic implications.

“Prolonged disruptions in container shipping could lead to delayed deliveries, high costs, and inflation. Energy security and food security could potentially be affected due to increased prices,” he said.

“These attacks pose serious threats to global maritime security, as well as the security and maritime trade for the coastal states in the region,” he said, calling out the Red Sea attacks as “categorically unacceptable”. But he remains confident that the industry will continue to stay resilient. “I trust that shipping organisations and Member States alike will come together in the relevant IMO fora to seek collaboration and look for solutions together.”

Mr Dominguez also pledged to create a more inclusive IMO, one that is more gender-balanced in an industry that has long been dominated by men.

“I have appointed a gender balanced senior management team and initiated a policy of refraining from participating in panels or events unless gender representation is respected. I encourage the maritime community to follow this example,” he said.

He added that the IMO will also strive to fulfil its mandate as the world’s regulator for international shipping; support IMO’s 176 Member States, particularly Small Island Developing States and Least Developed Countries; raise public awareness of IMO’s impact; and adopt a “people-centred approach”.

“My vision is for IMO to flourish as a transparent, inclusive, and diverse institution,” he said. 

Singapore can ‘shine a light on the way forward’

Key maritime hubs like Singapore can play a key role as the industry pushes ahead in its quest to decarbonise, said International Maritime Organization’s (IMO) Secretary-General, Mr Arsenio Dominguez.

“Singapore is (in) a great position to participate in trials and pilots to show what works, including routebased actions – and share results of any trials back to IMO,” he said.

The green transition poses a slew of fresh considerations for the maritime sector. A major bunkering hub such as Singapore will need to look at making changes to infrastructure to deliver new fuels.

Other considerations for the industry include safety, pricing, lifecycle emissions, supply chain constraints, barriers to adoption and more, added Mr Dominguez. Seafarers, too, will need to be trained in how to operate new technology safely.

“We need ‘early movers’ in the industry as well as forward-looking policy makers to take the necessary risks and secure the right investments that will stimulate long-term solutions for the sector,” he said.

Singapore Maritime Week is a chance for key stakeholders to “have the conversations and discussions that can formulate ideas and bring new solutions”, Mr Dominguez said.

Now, more than ever, collaboration will be crucial. “The experience of critical maritime hubs like Singapore can help shine a light on the way forward for many issues. Here the IMO can play a role in providing opportunities for Singapore and other maritime hubs to share their expertise with all Member States. Shipping is global – no single country can go it alone.” 

Singapore Maritime Week 2024 was organised by Maritime and Port Authority of Singapore from 15 to 19 April. 

 

Photo credit: International Maritime Organization
Article credit: The Nutgraf/ Maritime and Port Authority of Singapore
Published: 23 April, 2024

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MoU

IBIA and BIMCO to collaborate on bunker fuel and maritime challenges

Both will collaborate in areas including research initiatives, studies, and projects relevant to bunker or marine energy industry and maritime sector as well as training and education.

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IBIA and BIMCO to collaborate on bunker fuel and maritime challenges

The International Bunker Industry Association (IBIA) and BIMCO on Monday (22 April) said they have signed a Memorandum of Understanding (MoU) to collaborate on some of the monumental challenges and opportunities within the areas of bunker, marine energy and maritime sectors and help facilitate shipping’s decarbonisation efforts.

The parties have agreed to leverage their respective expertise and resources to develop innovative solutions and initiatives to facilitate the transition towards cleaner fuels and efficient and sustainable shipping practices. The partnership MOU will focus on addressing the following key areas:

Research and Development: Collaborate on research initiatives, studies, and projects relevant to the bunker/marine energy industry and maritime sector.

Information Sharing: Share relevant information, publications, and data that may be beneficial to the members of both organisations.

Training and Education: Explore opportunities for joint training programs, seminars, and educational initiatives to enhance the knowledge and skills of professionals in the maritime and bunker/marine energy industry.

Influence: Work together on efforts to address common issues and challenges faced by the industry.

Alexander Prokopakis, Executive Director of IBIA, said: “This partnership between IBIA and BIMCO marks an important step towards addressing the pressing challenge of decarbonisation in the shipping industry. The collaboration underscores the industry’s collective commitment to navigating towards a greener future for maritime operations.”

David Loosley, BIMCO Secretary General & CEO, said: “As we work towards the checkpoints and targets of the updated GHG strategy of the IMO, working across all sectors that influence and support decarbonisation of shipping will be key. Our ships will be relying on many different fuel solutions in the process and working toward the safety and availability of those is crucial.” 

IBIA and BIMCO are committed to driving progress towards a more sustainable and environmentally responsible future for the global shipping industry.

 

Photo credit: IBIA and BIMCO
Published: 23 April 2024

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Biofuel

Peninsula and NYK collaborate on B30 biofuel bunkering op in Zeebrugge

Peninsula barge “New York” delivered 1,200 mt of B30 bio bunker fuel to “Garnet Leader”, a NYK vehicle carrier on 24 March in Zeebrugge, Belgium.

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Peninsula and NYK collaborate on B30 biofuel bunkering op in Zeebrugge

Marine fuel supplier Peninsula on Monday (22 April) announced the successful conclusion of the first B30 biofuel supply deal in Zeebrugge, Belgium, in collaboration with the Japanese shipping company, Nippon Yusen Kabushiki Kaisha (NYK). 

The deal, which marks a significant milestone in sustainable fuel distribution, saw the delivery of 1,200 metric tonnes (mt) of B30. 

The delivery, executed on 24 March involved the vessel Garnet Leader, a NYK vehicle carrier. 

Peninsula's barge New York, played the role of ensuring the transportation and delivery of the biofuel to its destination in Zeebrugge.

Kaori Takahashi, General Manager of NYK’s Fuel Group, said: “NYK is proud to collaborate with Peninsula in this pioneering supply of B30 biofuel, which underscores our dedication to environmental sustainability and innovation in the maritime sector.”

“By leveraging sustainable biofuels like B30, we are taking meaningful strides towards reducing greenhouse gas emissions.”

“NYK remains dedicated to driving positive change within the industry while meeting the evolving demands of our customers and stakeholders.”

B30 biofuel, a blend comprising 30% ISCC EU certified sustainable UCOME, which is biofuel derived from Used Cooking Oil, offers a promising avenue reducing GHG emissions by 84%, thus mitigating the environmental impact of maritime operations. 

By using biofuel technology, Peninsula continues to pave the way for a greener future while simultaneously meeting the evolving needs of the shipping industry.

Peninsula's Head of Biofuels Desk, Nikolas Nikolaidis, said: "As the maritime industry, along with prominent players like NYK, intensifies their adoption of Sustainable Marine Fuels (SMF), the accessibility of such solutions grows in significance.”

“Peninsula is committed to collaborating closely with our established clients and partners to deliver SMF solutions where demand is highest.”

“Peninsula is broadening its biofuel supply network, positioning itself as the leading physical marine fuel supplier to offer comprehensive biofuel solutions across multiple regions and ports for our customers."

 

Photo credit: Peninsula and NYK
Published: 23 April 2024

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