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JLC China Bunker Market Monthly Report (August 2022)

China’s bonded bunker fuel sales continued to rise in August as bonded bunker fuel demand improved and supply from Zhoushan and Shanghai grew, JLC data showed.

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Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for August 2022 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

Bonded bunker fuel sales rise on more demand in Aug

China’s bonded bunker fuel sales continued to rise in August, as bonded bunker fuel demand improved and the supply from Zhoushan and Shanghai grew when local spread of the virus slowed down. 

The country’s bonded bunker fuel sales climbed to around 1.80 mln mt in the month, up by 7.14% from a month earlier, JLC’s data shows. In detail, Chimbusco and Sinopec Zhoushan sold about 670,000 mt and 745,000 mt of bonded bunker fuel in August, JLC’s data indicates. Bonded bunker fuel sales by SinoBunker and China ChangJiang Bunker (Sinopec) were about 80,000 mt and 60,000 mt, respectively. About 245,000mt of bonded bunker fuel sales were made by suppliers who held local licenses, with PetroChina Zhoushantaking 110,800 mt. 

China saw higher monthly growth in bonded bunker fuel exports in July, as the country continued to ramp upits production of low-sulfur fuel oil (LSFO, with the maximum sulfur content at 0.5%) amid new quota and substantial margins. 

China recorded approximately 1.69 million mt of bonded bunker fuel exports in July 2022, jumping 12.06% month on month, according to data from the General Administration of Customs of PRC (GACC). 

The exports of heavy bunker fuel and light marine gas oil were about 1.60 million mt and 99,900 mt in the month, respectively occupying 94.1% and 5.9% of the total. 

State-owned enterprises exported roughly 1.45 million mt of bonded bunker fuel over the month, making up 85.44%, while the exports by local independent enterprises rose to 246,700 mt, accounting for 14.56%. 

On a year-on-year comparison, however, the bonded bunker fuel exports declined by 9.44%in July, GACC data indicates. The drop came as supply tightened after China’s imports of bonded bunker fuel plunged amid high costs and the bonded bunker fuel market was still depressed by the epidemic.

JLC China Bunker Market Monthly Report (August 2022)
JLC China Bunker Market Monthly Report (August 2022)

Domestic bunker fuel demand stabilizes in August

Domestic-trade heavy bunker fuel demand stabilized at 400,000 mt in August, as the consumption in the shipping market was relatively steady. The majority of market participants stood on the fence when bunker fuel prices remained high, resulting in light trading and limited new contracts. On the other hand, the demand for light bunker fuel ascended by 10,000 mt or 6.67% to roughly 160,000 mt in the month. Despite downward pressure from high temperatures and rising diesel prices, the demand for light bunker fuel was still supported by rigid demand. 

Bunker Fuel Supply

China records steep fall in bonded bunker fuel imports

China’s bonded bunker fuel imports sharply slumped in July, amid a surge in the output of low-sulfur fuel oil (LSFO) and a decline in domestic bunker fuel prices. 

The country imported about 352,600 mt of bonded bunker fuel in July 2022, a plunge of 31.85% month on month and 21.24% year on year, according to the data from the General Administration of Customs of PRC(GACC). 

Encouraged by the release of this year’s third batch of LSFO export quota and still good margins, Chinaramped up its production of LSFO during the month, relieving the ongoing supply tension to some extent. As a result, the country slashed its bonded bunker fuel imports when the booming production managed to meet more domestic demand.

In addition, China’s bunker fuel prices kept sliding over the month, making domestic bunker fuel prices more competitive. At the same time, certain market participants who were pessimistic about imported LSFO prices reduced their procurement of imported low-sulfur resources because they thought that prices would continue to dip in the short run. 

Despite a smaller share of the imports from Malaysia, the country still led all suppliers by exporting 83,400 mt of bonded bunker fuel to China, accounting for 24% of China’s total imports of bonded bunker fuel. Japan overtook the UAE and ranked second with the imports from it at 79,200 mt and accounting for 22%. The followings were Russia, South Korea and the UAE, with 77,900 mt from Russia, 69,000 mt fromSouth Korea and 42,100 mt from the UAE, accounting for 22%, 20% and 12% respectively. There were only 1,000 mt of bonded bunker fuel imports coming from Singapore in the month.

JLC China Bunker Market Monthly Report (August 2022)

Domestic blended bunker fuel supply creeps up in August

Domestic blended bunker fuel supply increased in August, as blending margins were relatively good in the month, underpinned by higher bunker fuel prices. 

Chinese blenders supplied a total of about 480,000 mt of heavy bunker fuel in August 2022, an uplift of 30,000 mt or 6.67% from a month earlier, JLC’s data shows.

In detail, the supply of low-sulfur asphalt, an important blendstock for heavy bunker fuel, increased in the month as blenders were keen to make purchases. However, the supply was inadequate in some regions, including Sichuan, due to the power rationing. The supply of shale oil also increased, while that of coal-based diesel and light coal tar tightened. 

Meanwhile, the supply of domestic marine gas oil (MGO) rallied to around 180,000 mt, up by 20,000 mt or 5.00% from July.

JLC China Bunker Market Monthly Report (August 2022)

Bunker Prices, Profits

JLC China Bunker Market Monthly Report (August 2022)
JLC China Bunker Market Monthly Report (August 2022)
JLC China Bunker Market Monthly Report (August 2022)

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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 (July 2022)
Related: JLC China Bunker Market Monthly Report (June 2022)
Related: JLC China Bunker Market Monthly Report (May 2022)
Related: JLC China Bunker Market Monthly Report (April 2022)
Related: JLC China Bunker Market Monthly Report (March 2022)
Related: JLC China Bunker Market Monthly Report (February 2022)
Related: JLC China Bunker Market Monthly Report (January 2022)

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 September, 2022

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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.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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