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JLC China Bunker Oil Market Monthly Report (May, 2020)

Singapore bunker fuel market was hit by the bankruptcy of Hin Leong Trading in May and some traders shifted focus to Chinese ports, adding to high bunker demand.

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JLC May Bonded Bunker Fuel Sales in ZhouShan

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

JLC China Bunker Market Monthly Report (May, 2020)
Highlights

Demand and Supply

Bunker Oil Demand

Bonded bunker fuel sales stay high in May on improving demand

In May, China’s bonded bunker fuel sales were about 1.45 million mt, JLC data showed. The bonded bunker fuel demand was buoyed by recovering shipping demand and advantageous prices. Countries took actions to shore up economy upon easing COVID-19 in May. More ships were incentivized to refuel at Chinese ports amid low prices of low-sulfur bunker fuel supplied by domestic refiners. In addition, bunker fuel markets in Singapore were hit by the bankruptcy of Hin Leong Trading and some traders shifted focus to Chinese ports for bunker fuel oil consumption. As a result, sales of bonded bunker fuel in May stayed high. Chimbusco and Sinopec sold about 525,000 mt and 678,000 mt of bonded bunker fuel, respectively. New enterprises in the China (Zhejiang) Pilot Free Trade Zone sold 136,000 mt. Bonded bunker fuel sales were about 79,000 mt for China ChangJiang Bunker (Sinopec) and 42,000 mt for SinoBunker. 

China’s bonded bunker fuel sales surged to 1.56 million mt in April, up by 41.26%% month on month and up by 56.11% year on year, according to GAC data. Major Chinese ports saw low-sulfur bunker fuel prices equivalent to or lower than those in Singapore amid domestic mass production and short distance of supply. With more shares in the market, China’s bonded bunker fuel sales went up in April. PetroChina ramped up exports of low-sulfur bunker fuel oil by direct supply from its refineries, and thus topped Chimbusco in bonded bunker fuel sales, ranking the first. Specifically, bonded bunker fuel sales were 544,600 mt for Chimbusco, 70,400 mt for Sinopec, 75,500 mt for China ChangJiang Bunker (Sinopec), 40,500 mt for SinoBunker and 130,000 mt for new enterprises in the China (Zhejiang) Pilot Free Trade Zone.

JLC May China Bunker Exports by Region 2019 2020

JLC May China MMajor Blended Traders Bunker Sales

Domestic bunker fuel demand grows in May

Domestic bunker fuel demand rose in May. With temperature rising and coronavirus-related protection loosened, bulk demand continued to rally, among which demand for coal, metal ore and grain recovered markedly. Freight capacity was tight in some routes. End-users who shut down their operation before began to purchase bunker fuel. Driven by improving coastal transport demand, bunker fuel demand went up. The demand for domestic-trade heavy bunker fuel was about 300,000 mt in the month, up by 40,000 mt or 15.38% from the previous month. The demand for light bunker fuel was 105,000 mt in May, up by 20,000 mt from April on rising demand amid stable trades when fishers made purchases mainly based on needs.

Bunker Oil Supply

Bonded bunker fuel imports rise 37.76% in April

China’s bonded bunker fuel imports were 1,029,400 mt in April, a rise of 37.76% month on month and a drop of 22.43% year on year, GAC data showed. Bonded bunker fuel traders stocked up amid low prices resulted from the collapse of international crude and high inventories at some ports in April. Driven by large purchases, China’s bonded bunker fuel imports were higher in April than the previous month.

Specifically, the largest import source for China was Malaysia with 529,000 mt of bunker fuel, followed by South Korea with 179,000 mt. The imports were 178,500 mt from Singapore and 60,000 mt from Japan. Besides, there were imports of 37,500 mt and 44,000 mt from Russia and Indonesia, respectively.

JLC May Bonded Bunker Fuel Imports by Source April 2020

Domestic blended bunker fuel supply grows in May 

Chinese blended producers supplied a total of around 330,000 mt of heavy bunker fuel in May, a rise of 30,000 mt or 10% month on month, JLC data showed. With the effective control of COVID-19 in May, coastal bulk demand turned better along with a gradual recovery of the economy. Meanwhile, Some blended producers made more purchases when blended costs rebounded. However, blended producers in Northeast China halted operation on a lack of fuel oil invoices. Therefore, domestic trade bunker fuel supply was still below the normal level of last year, despite a month-on-month rise. Light bunker fuel supply was about 110,000 mt, up by 10,000 mt from April. Despite the surge of international crude prices, the improvement in light bunker fuel supply was not significant due to lackluster fisher demand.

JLC May Arrical of Imported Fuel Oil Cargoes

Bunker Profits, Prices

Domestic Bunker Price by Region 2020

JLC May China Bonded Bunker Fuel Prices 2019 2020

JLC May China BUnnker Blendinng Profit by region 2019 2020

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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. 


Photo credit: JLC Network Technology Co., Ltd
Published: 12 June, 2020

 

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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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