Business
JLC China Bunker Market Monthly Report (March 2023)
China’s bonded bunker fuel sales rebounded in March, as more foreign ships refueled at Chinese ports where LSFO prices were competitive.

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7 months agoon
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Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for March 2023 with Manifold Times through an exclusive arrangement:
Bunker Fuel Demand
China’s bonded bunker fuel sales rebound in March
China’s bonded bunker fuel sales rebounded in March, as more foreign ships refueled at Chinese ports where low-sulfur fuel oil (LSFO) prices were competitive.
The country tallied about 1.59 million mt of bonded bunker fuel sales in March, a rally of 130,000 mt or 8.18%from February, JLC’s data shows. Specifically, the sales by Chimbusco and SinoBunker climbed to 610,000mt and 70,000 mt, up from 550,000 mt and 60,000 mt in the previous month respectively, while those by Sinopec Zhoushan slipped to 530,000 mt, down from 550,000 mt. At the same time, China ChangJiangBunker (Sinopec) sold about 40,000 mt of bonded bunker fuel, unchanged month on month. In addition, suppliers with regional licenses sold 340,000 mt, versus 260,000 mt in February.
LSFO prices at Chinese ports, especially those in Zhoushan and Shanghai, dropped in the month, attracting more shipowners to refuel. However, the supply of bonded bunker resources was still relatively tight in South China, limiting the rise in China’s total sales.
China’s bonded bunker fuel exports plunge 23.64% in Jan-Feb
China’s bonded bunker fuel exports plunged by 23.64% year on year in January-February 2023, due to multiple downsides.
The country exported about 2.93 million mt of bonded bunker fuel in the two months, down from3.84 million mt in the corresponding months in 2022, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).
Heavy bunker fuel exports were 2.79 million mt in the first two months of this year, accounting for 95.18%of the total.At the same time, marine oil gas (MGO) exports were 141,500 mt, making up 4.82%.
Enterprises with national and regional bunkering licenses exported about 2.41 million mt and 526,600 mt in the two months, occupying 82.05% and 17.95% respectively. Sinopec Fuel Oil and Chimbusco were still the main suppliers in this period.
In January alone, China’s bonded bunker fuel exports were roughly 1.32 million mt, a dramatic slump of 46.38% year on year. Global shipping demand was seasonally weak in January, and foreign shipowners were wary about purchases. Meanwhile, the supply of bonded resources tightened in northern regions, which also hit the exports. In addition, some bunkering business at Chinese ports was halted during the Chinese New Year holiday, and China’s customs clearing procedure for export was also affected by the holiday.
However, the exports rebounded in February when global shipping demand grew modestly. Meanwhile, the operation of China’s customs returned to normal after the holiday. China’s bonded bunker fuel exports stood at about 1.61 million mt in February, up by 22.08% from a month earlier and 17.04% from a year earlier.
On the flip side, China’s low-sulfur fuel oil (LSFO) output climbed in January-February as domestic demand rallied. China’s LSFO output settled at 2.46 million mt in the two months, an increase of 7.40%year on year, JLC’s data shows.
China may boost its bonded bunker fuel exports in March as the country’s foreign trade may improve on preferential policies, but the exports are unlikely to grow much because the recovery of the global economy and shipping demand is still slow.


Domestic bunker fuel demand grows slower in March
Domestic-trade bunker fuel demand saw slower growth in March when shipowners were more cautious about purchases. Domestic-trade bunker fuel demand settled at 360,000 mt in the month, a gain of 20,000 mt or 5.88%monthon month, decelerating from a rise of 8.82% in February. Trade cooled down with shipping demand still slow to recover.
In the meantime, domestic demand for light bunker fuel climbed to 135,000 mt, up by 5,000 mt or 3.85%, slowing down from a jump of 18.18% in February. Domestic-trade light bunker fuel consumption increased slightly when marine gas oil prices slipped, but the increase was much slower than a month earlier due to deeper wait-and-see sentiment.
Bunker Fuel Supply
China’s bonded bunker imports hit new low in Jan-Feb 2023
China’s bonded bunker fuel imports plummeted to a new low in the first two months of 2023, largely due to relatively high freight rates and ample supply of domestic low-sulfur fuel oil (LSFO).
The country imported approximately 456,900 mt of bonded bunker fuel in January and February 2023, a plunge of 48.01% from the same period in 2022, JLC estimates, based on data from the General Administration of Customs of PRC (GACC).
Most distributors favored domestically-produced low-sulfur bonded bunker fuel over imported fuel as international freight rates remained high, and domestic supply was more stable and less expensive, industry sources said.
Some distributors with regional licenses to supply bonded bunker may choose to suspend bunkering business if they failed to secure domestic LSFO supplies, according to industry sources.
In China’s bonded bunker market, only high-sulfur fuel oil (HSFO) and marine gasoil (MGO) still rely on imports, while LSFO is rarely seen coming from overseas at present.
Noticeably, HSFO and MGO only account for a small percentage of market share in China’s bonded bunkering business, which may explain why imports were so low in January and February this year.
Malaysia was the top supplier of bonded bunker during the two-month period, exporting 306,400 mt to China, accounting for 67% of the latter’s total imports, followed by South Korea, which exported 109,500 mt with an import share of 24%. Japan and Singapore ranked third and fourth with 39,500 mt and 1,500 mt, accounting for 8.7% and 0.3% respectively.

Domestic heavy bunker fuel supply increases in March
Domestic-trade heavy bunker fuel supply continued to increase in March. Chinese blenders supplied about 375,000 mt of heavy bunker fuel in the month, an uptick of 15,000 mt or 4.17% from a month earlier, JLC’s data shows.
In contrast, the supply of marine gas oil (MGO) shrank to 140,000 mt in the month, a mild dip of 5,000 mt or 3.45% month on month, the data indicates.
Some blenders were wary about bunker fuel blending when downstream demand was relatively weak. As aresult, they just based their supply on actual orders.

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 Market Monthly Report (February 2023)
Related: JLC China Bunker Market Monthly Report (January 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: 17 May, 2023
Biofuel
China Shipping & Sinopec Suppliers completes first biofuel bunkering op of passenger ship in Dalian
Firm successfully refuelled passenger ship “Chang Shan Dao” owned by Cosco Shipping Ferry with B24 bio bunker fuel on 29 November at Dalian Cruise Port.

Published
2 days agoon
December 8, 2023By
Admin
China Shipping & Sinopec Suppliers Co., Ltd. on Wednesday (29 November) successfully refuelled passenger ship "Chang Shan Dao" owned by Cosco Shipping Ferry Co., Ltd. with B24 bio bunker fuel at the Dalian Cruise Port.
The occasion marked the first biofuel bunkering operation for passenger ships in China.
The B24 biofuel oil used was blended with 24% biofuel and 76% conventional low-sulphur fuel oil.
Sinopec China Shipping Fuel Supply, which is responsible for the bunkering operation, is a bunker supply firm jointly established by Sinopec Group and COSCO Shipping Group.
According to Li Zhi, Deputy Party Secretary and Deputy General Manager of China Shipping & Sinopec Suppliers Co., Ltd., the biofuel bunkering business is another step in the company's active business of the group's development strategy.
The bunkering operation after the firm completed the first bonded biofuel bunkering operation of a domestic ship on 7 September.
Disclaimer: The above article published by Manifold Times was sourced from China’s domestic market through a local correspondent. While considerable efforts have been taken to verify its accuracy through a professional translator and processed from sources believed to be reliable, no warranty is made regarding the accuracy, completeness and reliability of any information.
Photo credit: China Shipping & Sinopec Suppliers
Published: 8 December, 2023
Alternative Fuels
Singapore, Tianjin to pilot and trial alternative bunker fuels following shipping corridor MoU
Singapore – Tianjin Green and Digital Shipping Corridor will serve as a valuable testbed for both countries to pilot and trial digital solutions, alternative fuels and technologies, amongst others.

Published
2 days agoon
December 8, 2023By
Admin
The Maritime and Port Authority of Singapore (MPA) and the People’s Republic of China’s Tianjin Municipal Transportation Commission on Wednesday (6 December) signed a memorandum of understanding (MoU) to establish the Singapore – Tianjin Green and Digital Shipping Corridor.
Mr Teo Eng Dih, Chief Executive, MPA, and Mr Wang Zhinan, Director General, Tianjin Municipal Transportation Commission, signed this MoU.
The MoU marked the first Green and Digital Shipping Corridor established between Singapore and China to support the decarbonisation, digitalisation and growth of the maritime industry between Singapore and the Bohai Region.
The Singapore – Tianjin Green and Digital Shipping Corridor will serve as a valuable testbed for both countries to pilot and trial digital solutions, alternative bunker fuels and technologies, and facilitate talent development to support the decarbonisation and digitalisation of shipping.
Singapore and Tianjin will work with the research community, the institutes of higher learning, and industry stakeholders such as shipping lines, port operators, shipbuilders, classification societies, and bunker suppliers to enable more efficient port clearance through digital exchanges, encourage the offtake of zero or near-zero greenhouse gas emission fuels and adoption of new fuel technologies, spur innovation and support the growth of the maritime startups community, and facilitate manpower training and professional development.
The establishment of the Singapore – Tianjin Green and Digital Shipping Corridor reaffirms the strong commitment by Singapore and Tianjin to accelerate maritime decarbonisation and digitalisation. Singapore will also be exploring the establishment of similar collaboration with other maritime and port ecosystems within China.
Photo credit: Maritime and Port Authority of Singapore
Published: 8 December, 2023
Decarbonisation
Report highlights routes-based action plan methodology to accelerate uptake of clean bunker fuels
NextGEN Connect-GreenVoyage2050 collaboration, which includes Singapore, emphasises the important role of regional energy hubs in enabling the inclusive adoption of clean marine fuels.

Published
2 days agoon
December 8, 2023By
Admin
The Maritime and Port Authority of Singapore (MPA) on Thursday (7 December) said the NextGEN Connect-Green Voyage2050 Project identified a key role for regional hubs to help connect large demand clusters and remote locations, with regional fuel supply sources, in order to enable a more inclusive and effective transition to a low-carbon maritime future.
The project is a collaboration between Singapore, Norway and the International Maritime Organization (IMO).
These findings were unveiled in the Lloyd’s Register Maritime Decarbonisation Hub (LR MDH) report titled Routes-based Action Plans: A Toolkit launched at the Voyage to Net-Zero Forum, which was organised by MPA, at the 28th United Nations Climate Change Conference (COP28/CMP8/CMA5) yesterday.
The report was developed following a workshop discussion that was held from 5 to 6 October 2023 in Singapore, with the participation of 40 stakeholders representing ports and National Administrations across Asia, based on the concept of the LR MDH’s First Movers Framework for green corridors. The workshop simulated the process steps of the routes-based action plan methodology, addressing the limitations in its application in the wider Asian context. Additional engagements with stakeholders from the Pacific are envisaged to further refine the methodology.
“One of the key findings in our report highlighted the varying pace of decarbonisation efforts across the Asian region and the need for regional coordination among governments to establish energy clusters that will serve both as demand centres and energy producing hubs” said Charles Haskell, Director at LR MDH.
The creation of energy producing hubs includes defining a strategy that brings together demand from different countries at different developmental stages across the region to build up investment cases for implementing energy infrastructure at scale, all the while taking into consideration the economic and social benefits for local communities.
The report also emphasised that routes-based action plans should be steered by national governments to give confidence to the industry’s infrastructure investment decisions, with development banks and regional funds needing to play a part to help tailor financing solutions to support infrastructure development.
“If we truly want to achieve a net-zero future where no one is left behind, we cannot focus only on existing first mover initiatives. We must also study locations where the energy infrastructure is still in its infancy”, added Charles Haskell.
Essential to driving the implementation of routes-based action plans, as highlighted in the report, is the pooling of resources and capacity building to develop the business case for building the necessary infrastructure for regional hubs that include Least Developed Countries (LDCs) and Small Island Developing States (SIDS). This will require regional coordination and collaboration involving governments and all stakeholders across the maritime supply chain.
Mr. Teo Eng Dih, Chief Executive of MPA, said: “As we steer toward a sustainable maritime future, fostering a collective and inclusive approach is imperative in the development of green corridors and the energy transition to decarbonise international shipping.”
“The NextGEN Connect-GreenVoyage2050 collaboration emphasises the important role of regional energy hubs in enabling the inclusive adoption of clean marine fuels, particularly for LDCs and SIDSs. MPA looks forward to continuing its collaboration with IMO, Ministry of Climate and Environment of Norway and LR MDH to pilot solutions to reduce GHG emissions from ships and drive innovative transformations in the maritime industry.”
Sveinung Oftedal, Chief Negotiator of the Norwegian Ministry of Climate and Environment, said: “Separate routes for emission-free ferries and ships can play an essential role in stimulating early action to adopt zero or near-zero emission technologies and fuels, and hence are an important step towards decarbonising shipping. There is currently a significant volume of maritime traffic between Asian countries, and our workshop was a great forum to discuss opportunities the decarbonisation of maritime shipping can bring and how efforts can be linked to countries’ wider energy transition.”
Jose Matheickal, IMO Director of Partnerships and Projects, said: “Supporting developing countries, including SIDS and LDCs, in their efforts to implement the 2023 IMO Strategy on the Reduction of GHG Emissions from Ships is imperative to the decarbonisation of the maritime sector. IMO is pleased to provide, through this collaboration, practical support around the development and subsequent implementation of National Action Plans and route-based actions in line with IMO’s MEPC RESOLUTION.366(79) that encourages Member States to undertake these voluntary actions to facilitate the achievement of greener shipping and reduced emissions.”
Note: ‘Routes-based action Plans: a toolkit’ can be found here.
Photo credit: Maritime and Port Authority of Singapore
Published: 8 December, 2023

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