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JLC China Bunker Market Monthly Report (December 2023)

Country recorded 1.54 million mt of bonded bunker fuel sales in December, with the daily sales down by 8.04% month on month to 49,810 mt, JLC’s data shows.

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JLC China Bunker Market Monthly Report (December 2023)

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

Bunker Fuel Demand

China’s bonded bunker fuel sales retreat in December

China’s bonded bunker fuel sales retreated in December, mainly due to tighter supply of low-sulfur bunker fuel.

The country recorded 1.54 million mt of bonded bunker fuel sales in December, with the daily sales down by 8.04% month on month to 49,810 mt, JLC’s data shows.

The sales by Sinopec Zhoushan, SinoBunker and China ChangJiang Bunker (Sinopec) fell to 560,000 mt, 50,000 mt and 30,000 mt in the month respectively, while those by suppliers with regional bunkering licenses dropped to 424,100 mt, down from 435,000 mt in November.

In the meantime, Chimbusco tallied about 480,000 mt of bonded bunker fuel sales, unchanged month on month, the data also indicates.

Low-sulfur fuel oil supply tightened amid insufficient export quotas, leading to a decline in China’s bonded bunker fuel sales. Meanwhile, bunkering operation at some Chinese ports was spoiled by bad weather, adding to the downward pressure on the sales.

China’s bonded bunker fuel exports drop further in November

China’s bonded bunker fuel exports dropped further in November, due to tighter quotas on low-sulfur fuel oil (LSFO) exports.

The country exported about 1.37 million mt of bonded bunker fuel in the month, a cut of 6.12% month on month, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Heavy bunker fuel exports fell to roughly 1.31 million mt in November, accounting for 95.42% of the total, while light bunker fuel exports slipped to 62,700 mt, accounting for 4.58%.

Enterprises with national bunkering licenses exported about 933,200 mt of bonded bunker fuel in the month, making up 68.20%, with Sinopec Fuel Oil and Chimbusco taking 60.93%. Meanwhile, enterprises with regional licenses supplied 435,000 mt, accounting for 31.80%.

Facing quota tightness, Chinese refiners continued to cut their LSFO production and exports. China tallied only 637,000 mt of LSFO output in November, with the daily output at 21,233 mt, a plunge of 32.49% month on month, JLC’s data shows.

Sinopec’s application to convert quotas on 800,000 mt of fuel oil exports to those on oil product exports was approved in November, bringing China’s total LSFO quotas for 2023 down to 13.20 million mt. By the end of November, Chinese refiners had used about 96.1% of the total quotas, JLC’s data shows.

Lower exports were also ascribed to inflating export costs. The barging capacity at ports in South China and Shandong decreased, pushing up freight rates and hitting some bonded distributors’ export interest.

However, on a year-on-year comparison, China’s bonded bunker fuel exports grew by 5.68% in November.

China’s bonded bunker fuel exports totaled approximately 18.07 million mt in January-November, a gain of 1.09% from the same months in 2022, speeding up from 0.74% in January-October.

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Domestic-trade bunker fuel demand contracts in December

Domestic-trade bunker fuel demand contracted in December, as buyers’ acceptance of lofty prices was limited. Though China’s bunker fuel prices dropped in the month, they were still relatively high, supported by tight supply.

Domestic-trade heavy bunker fuel demand settled at 430,000 mt in the month, down by 20,000 mt or 4.4% from the previous month, JLC’s data shows. Meanwhile, domestic-trade marine gasoil (MGO) demand plunged to 130,000 mt, down by 30,000 mt or 18.8% month on month. Trading in the light bunker fuel market was tepid, and shipowners showed low buying interest.

Bunker Fuel Supply

China’s bonded bunker fuel imports soar in November

China’s bonded bunker fuel imports soared in November, because of tighter domestic supply.

The country imported about 536,900 mt of bonded bunker fuel in the month, a sharp boost of 32.70% month on month, JLC estimated, with reference to data from the General Administration of Customs of Chinese refiners cut their low-sulfur fuel oil (LSFO) output further in November, due to persistent quota tightness. China’s LSFO output settled at 637,000 mt in the month, with the daily output at 21,233 mt, a plunge of 32.49% from October, JLC’s data shows.

To fill the domestic supply gap, bonded distributors continued to increase their low-sulfur bunker fuel imports. However, continuous rises in the premiums for imported LSFO capped the imports to some degree.

High-sulfur bunker fuel imports also grew in the month amid supply tightness, while marine gasoil (MGO) imports held largely stable.

Singapore remained the largest supplier by sending 171,900 mt of bonded bunker fuel to China in the month, accounting for 32.02% of China’s total imports. Meanwhile, South Korea and Malaysia climbed to the second and third place with 158,800 mt and 92,900 mt, accounting for 29.58% and 17.31% respectively. Russia slipped to the fourth place with 70,700 mt, occupying 13.16%, followed by Japan with 42,500 mt, which made up 7.92%.

On a year-on-year comparison, however, China’s bonded bunker fuel imports dropped by 14.78% in November.

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Domestic-trade bunker fuel supply tightens in December

Domestic-trade heavy bunker fuel supply tightened in December, as blenders slowed down production when their blending costs inflated. Meanwhile, cargo delivery was not smooth against the background of strict tax inspection, forcing blenders to base their production on sales. Chinese blenders supplied about 430,000 mt of domestic-trade heavy bunker fuel in December, down by 30,000 mt or 6.52%, JLC’s data indicates.

At the same time, domestic-trade marine gasoil (MGO) supply settled at 150,000 mt, a monthly cut of 10,000 mt or 5.56%, the data shows. Refineries’ production enthusiasm was low when MGO prices dropped.

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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 (November 2023)
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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: 12 January, 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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