Business

JLC China Bunker Market Monthly Report (September, 2020)

China’s bonded bunker fuel sales rose to 1.69 million mt supported by the recovering shipping market and diverted traffic from Hong Kong which is under lockdown.

Published

4 years ago

October 15, 2020

Admin

Beijing-based commodity market information provider JLC Network Technology Co. on Thursday (13 October) shared its JLC China Bunker monthly report for September with Manifold Times through an exclusive arrangement:

JLC China Bunker Market Monthly Report (September, 2020)

Highlights

Demand and Supply

Bunker Fuel Demand

Bonded bunker fuel sales rise in September

In September, China’s bonded bunker fuel sales rose to 1.69 million mt, JLC data showed. Sales of bonded bunker fuel stayed high, supported by growing demand with a gradual recovery of the shipping market. In addition, as COVID-19 in Hong Kong was not fully contained, bunker fuel consumption in Hong Kong was still negatively affected. China’s bonded bunker fuel sales were also underpinned by demand that was switched from Hong Kong ports. Chimbusco and Sinopec sold about 625,000 mt and 802,000 mt of bonded bunker fuel, respectively. Bonded bunker fuel sales were about 89,000 mt for SinoBunker and 28,000 mt for China ChangJiang Bunker (Sinopec). New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 150,000 mt.

China’s bonded bunker fuel sales surged to 1.71 million mt in August, up by 27.43% month on month, according to GAC data. Since August, benefiting from mass production and direct supply from domestic refineries, the prices of China’s bonded bunker fuel oil at domestic ports had been lower than or equivalent to those at other Asian ports. In addition to competitive prices, bonded bunker fuel sales surged with some support by demand that was switched from Hong Kong ports due to COVID-19. Specifically, bonded bunker fuel sales were 854,500 mt for Sinopec, 607,500 mt for Chimbusco, 68,900 mt for SinoBunker, 25,200 mt for China ChangJiang Bunker (Sinopec) and 152,400 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone.

Domestic bunker fuel demand stable to higher in September

Domestic bunker fuel demand was stable to higher in September. Coastal shipping demand improved with a traditional peak demand season approaching and receding impacts of typhoon. However, the rise in demand was limited as the market did not improve as much as expected in the traditional peak demand season. End users' consumption of domestic-trade heavy bunker fuel was about 290,000 mt in the month, up by 40,000 mt or 16% from the previous month. The demand for light bunker fuel was 10,000 mt in September, up by 5,000 mt from August due to flat demand as fishers were cautious about trading and made small purchases based on needs.

Bunker Fuel Supply

Bonded bunker fuel imports rise 30.18% in August

China’s bonded bunker fuel imports were 729,700 mt in August, a rise of 30.18% month on month and a drop of 26.54% year on year, GAC data showed. Supply reduced as bonded bunker fuel imports slumped in July. Meanwhile, domestic production of low-sulfur bunker fuel oil dropped sharply as refiners were depressed by bad margins. Therefore, bonded fuel oil distributors ramped up imports and China's bonded bunker fuel imports increased markedly in August.

Specifically, the largest import source for China was still Malaysia with 557,000 mt of bunker fuel, followed by South Korea with 98,500 mt. The imports were 33,000 mt from Japan and 32,000 mt from Russia, while imports from Singapore dived to 8,700 mt.

Domestic blended bunker fuel supply slips in September

Chinese blending producers supplied a total of around 340,000 mt of heavy bunker fuel in September, a dip of 10,000 mt or 2.86% month on month, JLC data showed. In September, tight low-sulfur residue oil supply was eased and downstream users were less reluctant to make pre-holiday restocking. But residue oil prices were under downward pressure with a lack of support from weak fundamentals. Although end-user demand edged up, blending producers lowered their prices to destock as they had a product overhang. The shipping market was tepid, despite a rise in freights ahead of the holiday and growing transport demand. Therefore, domestic blended bunker fuel supply dipped in September. Light bunker fuel supply was about 120,000 mt, slightly higher than August. End-user demand stabilized in the month amid falling crude prices. Supply did not change much as fishers were cautious about pre-holiday restocking amid bearish sentiments.

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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.

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Published: 15 October, 2020

Alternative Fuels

Singapore: MPA issues circular on resolutions adopted at IMO MSC 109

New circular informs shipping community of the resolutions, including on use of ammonia cargo as bunker fuel, and urges the shipping community to prepare for the implementation of these resolutions.

Published

3 hours ago

March 18, 2025

Admin

The Maritime and Port Authority of Singapore (MPA) on Monday (17 March) issued Shipping Circular No. 2 of 2025 regarding resolutions adopted by the 109th session of the Maritime Safety Committee (MSC 109) of the International Maritime Organization (IMO), which was held from 2 to 6 December 2024:

This circular informs the shipping community of the resolutions adopted by MSC 109 and urges the shipping community to prepare for the implementation of these resolutions.

MSC 109 adopted the following mandatory resolutions:

Resolution MSC.566(109) – Amendments to the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code)

This resolution adopts amendments to Chapter 16 of the IGC Code, mainly to allow the use of ammonia cargo as fuel. The amendments will enter into force on 01 July 2026 and will be given effect through the Merchant Shipping (Safety Convention) Regulations.

Resolution MSC.567(109) – Amendments to the International Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IGF Code)

This resolution adopts amendments to IGF Code regarding ship design and arrangements; general pipe design; safety functions of the gas supply system; fire protection; hazardous area zones; and ventilation requirements. The amendments will enter into force on 01 January 2028 and will be given effect through the Merchant Shipping (Safety Convention) Regulations.

MSC 109 also adopted the following resolutions:

Resolution MSC.568(109) – Amendments to the Revised recommendation on testing of life-saving appliances (resolution MSC.81(70))

This resolution adopts amendments to Part 1- Prototype Test for Life-saving Appliances, for self-righting test requirements of totally enclosed lifeboats, under paragraph 6.14.1.1 of the Revised recommendation on testing of life-saving appliances (resolution MSC.81(70)).

Resolution MSC.569(109) – Performance standards for the reception of maritime safety information and search and rescue related information by MF and HF digital navigational data (NAVDAT) system

This resolution adopts the Performance standards for the reception of maritime safety information and search and rescue related information by MF and HF digital NAVDAT system.

Resolution MSC.509(105)/REV.1 – Provision of radio services for the Global Maritime Distress and Safety System (GMDSS)

This resolution adopts the revised Recommendation on provision of radio services for the GMDSS, the Criteria for use when providing shore-based digital selective calling (DSC) facilities for use in the GMDSS, the Criteria for establishing GMDSS sea areas, the Criteria for use when providing a NAVTEX service and the Criteria for use when providing a NAVDAT service, set out in annexes 1 to 5, respectively, to the resolution. This resolution revokes resolution MSC.509(105).

Resolution MSC.570(109) – Performance standards for a universal shipborne Automatic Identification System (AIS)

This resolution adopts the revised Performance standards for a universal shipborne AIS, recognising the need for measures to prevent unauthorised entry or tampering of the ship's identity information in shipborne AIS.

Any queries relating to this circular should be directed to MPA Shipping Division via email at [email protected].

Photo credit: Maritime and Port Authority of Singapore
Published: 18 March, 2025

Business

Singapore-based AET appoints Nick Potter as new President and CEO

Potter, who assumes the CEO role from Zahid Osman, also assumed the role of Vice President, Petroleum & Products at MISC Group, joining the MISC Executive Leadership Team.

Published

3 hours ago

March 18, 2025

Admin

Singapore-based AET appoints Nick Potter as new President and CEO

Singapore-headquartered AET, MISC’s petroleum arm, on Monday (17 March) announced the appointment of Nick Potter as the new President and Chief Executive Officer (CEO) of the company.

Potter also assumed the role of Vice President, Petroleum & Products at MISC Group, joining the MISC Executive Leadership Team.

With over 35 years of experience in the maritime and energy sectors, Potter has led commercial, technical, and operational teams across the globe. He previously served as Head of Shipping and Maritime for Asia, Pacific, and the Middle East at Shell, and before that, as Global Head of Maritime at BG Group.

His career began at sea as an Engineering Officer, before progressing through various roles at Shell and BG, giving him deep expertise in maritime logistics and the tanker business.

Beyond his leadership roles, Potter is a strong advocate for energy transition, maritime talent development, and seafarer welfare. He has actively contributed to key industry bodies, including OCIMF, the Singapore Maritime Foundation, and the International Chamber of Shipping's Clean Energy Marine Hubs Task Force.

Outgoing CEO Zahid Osman welcomed Potter in a symbolic leadership handover at AET’s headquarters, marking a new chapter in our journey.

“As Zahid takes on his expanded leadership role as President & Group CEO at MISC, we look forward to continuing our close collaboration as part of MISC Group,” AET added.

Photo credit: AET
Published: 18 March, 2025

Alternative Fuels

AAL Shipping names methanol-ready multipurpose heavy lift vessel in China

Singapore-based AAL Shipping says it held a naming ceremony for “AAL Dubai” – a multipurpose heavy lift vessel that is methanol-ready – at CSSC Huangpu-Wenchong Shipyard in Guangzhou.

Published

3 hours ago

March 18, 2025

Admin

AAL Shipping names methanol-ready multipurpose heavy lift vessel in China

Singapore-headquartered project heavy lift carrier AAL Shipping (AAL) on Thursday (13 March) said it held a formal naming ceremony for its fifth Super B-Class vessel, AAL Dubai.

The 32,000 dwt AAL Dubai – a multipurpose heavy lift vessel that is methanol-ready – was officially named on March 12 at the CSSC Huangpu-Wenchong Shipyard in Guangzhou, China.

The AAL Dubai is engineered to transport a vast array of cargo, including heavy lift project equipment, breakbulk, and dry bulk, all on a single voyage. With a combined lifting capacity of 700 tonnes, this vessel is designed to offer high efficiency, cargo flexibility, and economies of scale to shippers worldwide.

The vessel will now embark on its maiden voyage, joining sister vessels AAL Limassol, AAL Hamburg, AAL Houston, and AAL Antwerp in serving project cargo customers across Asia, Europe, the Middle East, and the Americas.

“We are now over the halfway mark with our Super B-Class deliveries, and those already in service are exceeding our expectations,” said Liew Teck Liong, Chief Financial Officer at AAL.

“With these vessels, we have achieved both company and industry firsts, and we look forward to redefining what a heavy lift, multipurpose vessel can accomplish as we deploy them for complex cargo challenges.”

Later this year, AAL will take delivery of the AAL Dammam, which will be shortly followed by the AAL Newcastle and AAL Mumbai that have an increased maximum heavy lift capability of 800 tonnes.

Photo credit: AAL Shipping
Published: 18 March, 2025