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JLC China Bunker Market Monthly Report (October, 2020)

Sales of bunker fuel fell as demand was tepid in October amid sluggish demand for transport due to falling international trade activities as a result of COVID-19.

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Beijing-based commodity market information provider JLC Network Technology Co. on Wednesday (11 November) shared its JLC China Bunker monthly report for October with Manifold Times through an exclusive arrangement:

JLC China Bunker Market Monthly Report (October, 2020)

 Highlights

Demand and Supply

Bunker Fuel Demand 

Bonded bunker fuel sales drop in October

In October, China’s bonded bunker fuel sales fell to 1.22 million mt, JLC data showed. Sales of bonded bunker fuel dropped as demand was tepid in October amid sluggish demand for transport due to falling international trade activities as a result of COVID-19. Besides, most Chinese ports were closed for refueling during the long holiday in early October and strong winds affected port operation at the end of the month, which dampened demand. Chimbusco and Sinopec sold about 502,100 mt and 483,000 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 54,500 mt for SinoBunker and 35,000 mt for China ChangJiang Bunker (Sinopec). New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 149,000 mt.

China’s bonded bunker fuel sales dropped to 1.41 million mt in September, down by 17.58% month on month, according to GAC data. In September, demand was underpinned by term contracts and gained some support by demand that was switched from Hong Kong ports due to COVID-19. Although sales of bonded bunker fuel at ports in Qingdao, Lianyungang, Zhoushan and Xiamen hit new highs, due to delays in customs clearance, sales recorded by customs were lower than actual sales in September. Specifically, bonded bunker fuel sales were 577,700 mt for Sinopec, 592,700 mt for Chimbusco, 42,800 mt for SinoBunker, 38,300 mt for China ChangJiang Bunker (Sinopec) and 156,500 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone.

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Domestic bunker fuel demand stabilizes in October

Domestic bunker fuel demand was largely unchanged in October. End users' consumption of domestic-trade heavy bunker fuel was about 290,000 mt in the month, flat from the previous month. The demand for light bunker fuel was 110,000 mt in October, up by 10,000 mt from September. On one hand, some downstream traders capitalized on lower prices and increased purchases. On the other hand, berthing and refueling operation in the southern region was impeded by typhoon. Some freight capacity was idle due to thin demand for cargoes. Some traders were cautious about trading amid prevailing bearish sentiments.

Bunker Fuel Supply

Bonded bunker fuel imports slip 3.1% in September

China’s bonded bunker fuel imports were 707,000 mt in September, a dip of 3.1% month on month and a drop of 19.1% year on year, GAC data showed. Bonded bunker fuel imports did not gain an edge over domestic supply as prices of low-sulfur fuel oil in China were lower than those in Singapore. Besides, domestic production of low-sulfur bunker fuel oil stabilized in the month and bonded fuel oil distributors were still consuming stocks they replenished previously. Therefore, China's bonded bunker fuel imports remained low in September.

Specifically, the largest import source for China was still Malaysia with 352,000 mt of bunker fuel. Imports from Singapore rose markedly to 235,000 mt. The imports were 118,000 mt from South Korea. Besides, imports from other countries totaled 2,000 mt.

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Domestic blended bunker fuel supply falls in October

Chinese blending producers supplied a total of around 320,000 mt of heavy bunker fuel in October, a drop of 20,000 mt or 5.88% month on month, JLC data showed. In October, low-sulfur residue oil supply reduced amid tepid buying interest of downstream traders, despite support from high prices. Besides, blending producers were depressed by high blending costs and low blending margins. Bearish sentiments prevailed in the blending market amid falling international crude prices. Supply was dampened as end-user consumption declined. Domestic blended bunker fuel supply dropped but was not tight in October due to slack demand. Light bunker fuel supply was about 120,000 mt, flat from September due to lower diesel bunker prices and tepid demand. 

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Bunker Prices, Profits

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JLC Network Technology Co., Ltd is recognised as the leading information provider in China. We specialise in providing transparent, high-value. authoritative market intelligence and professional analysis in commodity markets. Our expertise covers oil, gas. coal, chemical, plastic, rubber. fertilizer and metal industry, etc.

JLC China Bunker Oil Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market’s, demand, supply, margin, freight index. forecast and so on. The report provides full-scale & concise insight into China’s 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 (September, 2020)
Related: JLC China Bunker Market Monthly Report (July, 2020)
Related: JLC China Bunker Market Monthly Report (June, 2020)
Related: JLC China Bunker Oil Market Monthly Report (May, 2020)


Photo credit: JLC Network Technology Co Ltd
Published: 11 November, 2020

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Business

MAN Energy Solutions opens largest service hub in Singapore

New facility able to meet demand for repairs, maintenance and training services for MAN Energy Solutions’ alternative-fuel engines, such as two-stroke methanol dual-fuel engines.

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MAN ES MPA

Singapore on Friday (1 March) welcomed the opening of MAN Energy Solutions’ new mixed purpose facility today that will expand their local business activities.

MAN Energy Solutions is one of the global engine makers of alternative-fuel engines, and is driving the maritime energy transition by enabling the use of cleaner fuels in ships around the world.

Located in Tuas, MAN Energy Solutions' EUR 20 mil (SGD30 mil) investment will include a new MAN PrimeServ training academy for customers and employees, a logistics centre to serve as the warehouse for Asia, and a PrimeServ workshop to provide maintenance and repair services, including for MAN Energy Solutions’ alternative-fuel engines.

The new facility will serve as the largest service hub for MAN Energy Solutions’ activities and engagements outside of Europe, and will allow shipowners and ship managers to gain round-the-clock access to technical services for MAN Energy Solutions products such as repairs and maintenance of their alternative-fuel two-stroke engines, reduce turnaround times for ships due to quicker access to spare parts, and providing training for seafarers on the safe operation, maintenance, and troubleshooting of all MAN Energy Solutions equipment.

The new facility would also be timely to cater to the demand for repairs, maintenance and training services for MAN Energy Solutions’ alternative-fuel engines, such as the two-stroke methanol dual-fuel engines that are already available and for the two-stroke ammonia dual-fuel engines that are currently in development.

The mixed-purpose facility was launched by Dr Amy Khor, Senior Minister of State, Ministry of Transport and Ministry of Sustainability and the Environment.

SMS Khor said: “MAN Energy Solutions has been a long-time partner for Maritime Singapore since its establishment here in 1977. I am heartened that MAN Energy Solutions has placed a strong vote of confidence in Singapore by setting up its second hub outside of Europe here, setting the stage for collaboration in maritime decarbonisation, digitalisation, and talent development.”

“The expansion of MAN Energy Solutions’ workshop and warehouse activities will provide much needed capacity to support the maintenance of ocean-going vessels that adopt engines fuelled by new marine fuels.”

“MAN Energy Solutions' expanded training academy will also support Singapore's drive to upskill and reskill of our workforce, to build confidence for maritime workers to safely handle new marine fuels. I look forward to many more years of meaningful collaboration, especially in these emerging areas.”

Dr Uwe Lauber, CEO MAN Energy Solutions, said, “With over 9,000 square metres of floor space, Singapore is our largest hub outside of Europe in what is one of the most important maritime centres globally. We intend for this mixed-purpose facility to advance the maritime energy transition locally through education, logistics, and a comprehensive after-sales portfolio. Ultimately, we are ‘moving big things to zero’ and leading our customers towards a multi-fuel, decarbonised future.”

Mr Teo Eng Dih, Chief Executive Officer of the Maritime and Port Authority of Singapore, said, “As the world’s largest bunkering port and major transhipment hub, Singapore is committed to the maritime digitalisation and the green transition. We have been long-time partners with MAN Energy Solutions and have been working closely together in various methanol and ammonia shipping consortiums and also in skills development.”

“MAN Energy Solutions’ new maintenance and training facility here will add deep expertise and experience to the growing and vibrant new fuels ecosystem here and also upskilling of our maritime workforce, especially in the area of new methanol and ammonia engines.”

Nicolas Brabeck, Managing Director, MAN Energy Solutions, Singapore, said: “This new facility represents one of the biggest investments that we have made outside of our product centres within recent years. It forms a key part of our company’s Triple 10+ business strategy that aims for growth through green technologies. In this context, we intend to equip our personnel with the right skillsets to handle the new technologies coming online and drive our business forward. We therefore expect to significantly increase staff numbers on-site to some 400 people by 2027, and look forward to cultivating great relationships with our customers and the various, Singaporean authorities.”

MAN Energy Solutions’ Singapore office is its largest service hub outside Europe, and currently employs 250 staff.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 4 March 2024

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Singapore Maritime Officers’ Union launches upgraded Wavelink Maritime Simulation Centre

Centre includes new dual-fuel engine simulators, offering realistic training scenarios to prepare seafarers for the evolving maritime landscape and the shift to cleaner bunker fuels.

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Wavelink MPA

Singapore Maritime Officers'​ Union launched the newly upgraded Wavelink Maritime Simulation Centre (WMSC), according to Maritime and Port Authority of Singapore (MPA) on Thursday (29 February).

The SGD 2.75 million facility includes new dual-fuel engine simulators, offering realistic training scenarios to prepare seafarers for the evolving maritime landscape and the shift to cleaner fuels, in line with industry sustainability goals.

The WMSC was unveiled by Minister Grace Fu, Minister for Sustainability and the Environment at SMOU’s seminar titled Advancing Maritime Resilience: No One is Left Behind.

The seminar, focusing on transition and training, aimed to reinforce shared responsibility, empower the maritime workforce through training, and champion sustainability without disadvantaging stakeholders in achieving #netzero emissions by 2050.

MPA's Assistant Chief Executive (Corporate & Strategy) Hoe Soon Tan participated in a panel discussion on "Prioritising a 'Just Transition", addressing strategies to bridge skill gaps and ensure a smooth and equitable transition for all seafarers.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 4 March 2024

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Newbuilding

Singapore: EPS orders ammonia, LNG dual-fuel vessels from China

EPS signed one contract for a series of ammonia dual-fuel bulk carriers with CSSC Beihai Shipbuilding and another for a series of LNG dual-fuel oil tankers with CSSC Guangzhou Shipbuilding International.

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Singapore-based Eastern Pacific Shipping (EPS) on Wednesday (28 February) said it signed two new contract orders in a signing ceremony in Shanghai, one for a series of ammonia dual-fuel bulk carriers with CSSC Beihai Shipbuilding and another for a series of LNG dual-fuel oil tankers with CSSC Guangzhou Shipbuilding International. 

The contracts signed cover four 210,000 dwt ammonia dual-fuel bulk carriers and two 111,000 dwt LNG dual-fuel LR2 oil tankers, expanding our fleet of green vessels on water. 

“These are pivotal for EPS, testament to our continued commitment towards the decarbonisation of shipping,” EPS said in a social media post.

Manifold Times recently reported EPS signing a contract for its first ever wind-assisted propulsion system, partnering with bound4blue to install three 22-metre eSAILs® onboard the Pacific Sentinel

The turnkey ‘suction sail’ technology, which drags air across an aerodynamic surface to generate exceptional propulsive efficiency, will be fitted later this year, helping the 183-metre, 50,000 DWT oil and chemical tanker reduce overall energy consumption by approximately 10%, depending on vessel routing.

Related: Singapore: EPS orders its first wind-assisted propulsion system for tanker

 

Photo credit: Eastern Pacific Shipping
Published: 1 March 2024

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