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Bunker Fuel

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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Sales (Beijing)
Tony Tang
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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.

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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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Digital platform

ZeroNorth enables Golden Island to become Singapore’s first 100% digital bunker supplier

Access to ZeroNorth Bunker Electronic Bunker Delivery Notes (eBDN) will streamline bunker processes, enabling Golden Island to drive efficiency, transparency, and contribute to decarbonising shipping.

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ZeroNorth

Technology company ZeroNorth on Thursday (30 November) has announced that it has enabled its customer Golden Island Diesel Oil Trading Pte Ltd (Golden Island) to become the first marine fuel supplier in Singapore to go 100% digital in its use of Electronic Bunker Delivery Notes (eBDN).

Golden Island has chosen ZeroNorth Bunker’s eBDN solution, developed by BTS and recently consolidated under the ZeroNorth Bunker brand. The company will be able to provide 100% digital processes to increase transparency and improve collaboration. 

“Enabled by ZeroNorth’s technology platform, Golden Island plans to stop issuing physical BDNs from 1 December, as part of the company’s digitalisation initiative to move away from manual, paper-based processes and reduce its environmental impact on the journey to greener operations,” ZeroNorth said in a statement shared with Singapore-based bunkering publication Manifold Times.

ZeroNorth’s eBDN service will digitalise the bunker delivery process for its customers, with Golden Island the first to benefit and swiftly and securely verify purchased fuel quantities, eliminate delays and ensure smooth transactions.

“This move will help Golden Island to streamline the bunkering documentation process, increasing transparency, and driving efficiency and productivity across its marine fuel delivery operations. Digitalisation will enhance crew productivity and operational efficiencies. By eliminating paper forms with ZeroNorth’s solution, Golden Island expects to save at least two hours of manual data entry work each day,” ZeroNorth added. 

By digitalising the bunkering process, ZeroNorth will turn millions of data points into actionable recommendations for Golden Island on where it can drive efficiencies and achieve greener operations. With more data being interpreted through the digitalisation of BDNs, increasingly robust insights and analysis of emissions will then be generated for customers, further powering up the marine fuel market’s data flywheel. This will also enhance reporting, as information is standardised and readily available in a digital format.

Tomohiro Yamano, General Manager, Marine Fuel Department at Golden Island, said: “A month after the Maritime and Port Authority of Singapore (MPA) launched its digital bunkering initiative as the first port in the world to implement eBDN, we are proud to be the first company to fully switch to eBDN in the Singapore bunkering market. To achieve this, we required a solution that would facilitate a seamless workflow to enhance the productivity and efficiency of our marine fuel delivery operations.

“We were impressed with ZeroNorth’s deep understanding of the bunker industry and the capabilities of its eBDN solution. Digitalising our bunker processes with eBDN fits in with our digitalisation initiative to enhance and streamline operations, which will in turn also drive easier reporting and analysis of emissions.”

Kenneth Juhls, Managing Director for ZeroNorth Bunker at ZeroNorth, said: “Bunker procurement has been a traditionally cumbersome process, burdened by manual documentation. We’re delighted to be helping Golden Island eliminate these manual processes to streamline documentation, drive efficiencies and boost productivity across its operations as a global eBDN solution on the market.

“Given the integral role marine fuels are set to play in decarbonising shipping, ZeroNorth is proud to help our customers and the wider industry digitalise bunker operations. The data generated will in turn help enable the data flywheel effect, driving actionable recommendations on where further efficiencies can be created for the benefit of both profit and planet.”

The first internal trial for Golden Island using ZeroNorth’s eBDN solution began in November 2022. The company is now ready to adopt it into its operations after a year testing the solution, with assistance and approval from the Maritime and Port Authority of Singapore (MPA).

Manifold Times previously reported Singapore bunker supplier Golden Island Diesel Oil Trading Pte Ltd (Golden Island) will be fully adopting the electronic Bunker Delivery Note (e-BDN) for commercial bunkering operations from 1 December 2023 onwards.

Marine Fuels 360 Conference

ZeroNorth also announced it won the Digitalisation Award at the Marine Fuels 360 Awards Gala Dinner on 29 November. 

Commenting on the award, Juhls said: “We are proud and humble to get recognised by this award. The full team in ZeroNorth works hard everyday to bring value to our clients through our software solution. We are looking forward to continuing our collaboration with our customers, partners and the industry in our ambition of making global trade green.”

Related: Singapore: Golden Island switching to 100% e-BDN operations from 1 December
Related: ZeroNorth consolidates existing bunkering business following acquisitions 
Related: Singapore set to become first port in the world to debut electronic bunker delivery notes
Related: MPA Chief Executive: Port of Singapore begins digital bunkering initiative today 
Related: ZeroNorth acquires Singapore’s bunker supplier software provider BTS
Related: ZeroNorth acquires Prosmar Bunker Dashboard solution and Bunker Pricer module
Related: ZeroNorth acquires US-based bunker market platform ClearLynx
Related: ZeroNorth unveils ZeroNorth Bunker for bunker planning, procurement, and analytics
Related: ZeroNorth opens new office in Singapore to expand in Asia
Related: Singapore: Marine Fuels 360 Awards and Conference 2023 to bring together industry’s best

Photo credit: ZeroNorth / Informa Markets
Published: 30 November, 2023

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Biofuel

Kenoil Marine Services to conduct first-ever bunkering of bio-blended LSMGO in Singapore

“Kosmos Lily” is slated to supply bio-blended LSMGO, sourced from Alpha Biofuels, representing the first-ever bunkering of bio-blended LSMGO in Port of Singapore, says Jurong Port.

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Kenoil Marine Services to conduct first-ever bunkering of bio-blended LSMGO in Singapore

Jurong Port on Wednesday (29 November) said Kenoil Marine Services Pte Ltd, a licensed bunker supplier, successfully loaded 200 metric tonnes of B24 bio-blended Low Sulphur Marine Gas Oil (LSMGO) in Singapore.

The B24 marine biofuel blend was onto Kenoil Marine’s bunker tanker Kosmos Lily.

Kosmos Lily is slated to supply this bio-blended LSMGO, sourced from Alpha Biofuels, representing the first-ever bunkering of bio-blended LSMGO in the Port of Singapore,” Jurong Port said in a social media post.

“Jurong Port takes pride in serving as the preferred port infrastructure for biofuel bunkering, and supporting the maritime industry's energy transition toward achieving net-zero emissions.”

Separately, Allan Lim Yee Chian, Founder and CEO at Alpha Biofuels, said the firm has been working to produce, blend and supply better quality biofuels for the maritime industry for over the last two years.

“We focused a lot on traceability of the biofuels , stability of the blended product and also the cost of the product,” he said in a social media post.

“The result is a bio-bunker fuel that balances the need for decarbonisation by the industry against the cost of sustainable biofuel.”

Photo credit: Jurong Port
Published: 30 November, 2023

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Newbuilding

SeaTech Solutions and partners to develop India’s first electric tug E-VOLT 50

Other partners involved are India’s GRSE, Shift Clean Energy and ABS; GRSE will build an electric tug based on the E-VOLT 50 design by Singapore-based SeaTech Solutions.

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SeaTech Solutions and partners to develop India’s first electric tug E-VOLT 50

Singapore-based marine engineering and vessel design specialist SeaTech Solutions International (S) Pte Ltd on Tuesday (28 November) on Tuesday (28 November) said it inked Memorandum of Understanding (MOU) with India’s Garden Reach Shipbuilders and Engineers (GRSE) Ltd, Shift Clean Energy and American Bureau of Shipping (ABS) on 22 November.

The collaboration aims to bring to fruition the country’s first Electric Tug E-VOLT 50, an initiative to decarbonise India’s tugboat industry by curbing carbon emissions, enhancing operational efficiency, and establishing new benchmarks for performance and environmental sustainability.

GRSE India will build an electric tug based on the E-VOLT 50 design by SeaTech Solutions International (S) Pte Ltd. 

Cmde PR Hari, IN (Retd), Chairman and Managing Director, GRSE, said: “We are excited to be part of this groundbreaking collaboration that combines the expertise of GRSE and three industry-leading organisations. 

“E-VOLT 50 is a bold step towards a cleaner and greener future for the maritime sector. By utilizing sustainable energy solutions and cutting-edge technology, we aim to redefine the standards of

performance, efficiency, and environmental stewardship.”

Prabjot Chopra, VP Technology at SeaTech Solutions, said, “We are delighted to work with GRSE, Shift Energy and ABS on this E-VOLT 50, India’s first Electric Tug, which will pave the way for India’s Green port operation.”

“As the collaborative efforts of GRSE, SeaTech Solutions, Shift Energy, and ABS take shape, the Electric Tugs E-VOLT 50 project stands as a testament to India's commitment to fostering a sustainable maritime industry that aligns with global environmental goals,” SeaTech Solutions added.

“This initiative reflects a pivotal moment in the evolution of green shipbuilding, marking a significant stride towards a cleaner, greener, and more efficient future for the maritime sector.”

Photo credit: SeaTech Solutions International
Published: 30 November, 2023

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