- The Zhoushan Bonded Marine Fuel Association on Saturday (9 January) reported bonded bunker sales at Zhoushan totalling 4.724 million metric tonnes (mt) in 2020.
- It amounts to 7,517 vessels receiving bunkers and a 15.14% year on year increase compared to 2019.
- Bonded bunker sales at China’s largest bunkering port of Zhoushan totalled 4.73mn t in 2020, up by 620,000t or around 15pc from a year earlier.
- Thanks to rising imports of iron ore and other bulk commodities as well as increased efficiencies, according to data from major bunker suppliers at the port.
A recent news published in Manifold Times reveals that China’s Zhoushan bunker sales up 15pc in 2020.
Zhoushan’s bunker boosted
Zhoushan’s bunker volumes were also boosted by an increase in processing efficiency, after upgrades to its electronic platform for the outer port limit (OPL), where most international bunkering takes place.
The International Maritime Organisation (IMO) 2020 rules, which cap marine fuel sulphur content at 0.5pc, have also helped China expand its bunker volumes. The government awarded 10mn t of VLSFO export quotas for 2020, cutting bunker costs and reducing its dependence on imports. The availability of domestic VLSFO for the bunker sector also helped narrow the premium to the Singapore market — the differential between Zhoushan and Singapore VLSFO bunker spot prices — from an average of $26/t in 2019 to just $7/t in 2020.
What about December sales?
- December sales at Zhoushan in the eastern province of Zhejiang rose by 120,000t or 26pc from a month earlier to 583,000t.
- Demand was driven by a rise in sales of very low sulphur fuel oil (VLSFO), as bunker suppliers cleared storage space for new supplies from domestic refineries.
- The Chinese government awarded a 5mn t VLSFO export quota for 2021 to refiners Sinopec, CNPC, CNOOC, Sinochem and Zhejiang Petroleum and Chemical (ZPC).
China’s total iron ore imports rose by 6.5pc to 1.13bn t in 2020. Zhoushan is one of the three biggest iron ore arrival ports in China, together with Caofeidian and Jingtang.
Bulk carriers and other vessels tend to bunker in either Singapore or Zhoushan, depending on prices, timing, availability and other factors.
The association attributes the port’s performance to the following factors:
- Government preferential support policies and innovative regulatory measures for various departments to be able to coordinate simultaneously in order to resolve any issues that could arise during the bunkering process.
- The maritime department abolished the advance declaration of bunker as dangerous cargo, integrated the management of each anchorage to reduce the waiting time for vessels, reduced pilotage fees on vessels receiving bunkers, created a “whitelist” system for bunker supply tankers and put into service “Zhoushan type” bunker vessels.
- The commerce department revised taxation and regulatory measures such as export and tax rebate policies to support the physical supply business and the implementation of bunker fuel futures deliveries.
- At the end of the year, various departments worked together to develop a more convenient custom clearance “refuel and go” model for large vessels.
The association also published the following as the key highlights for 2020:
- The four main anchorages of Tiaoqimen, Xiazhimen, Mazhi and Xiushan have provided fuel to 2,405 vessels on international voyages, with a fuelling volume of 1,866,400 metric tonnes, accounting for 39.5% of the port’s total fuel supply.
- In recent years, 21 new bunker fuel anchors have been added to anchorages such as Xiazhimen Anchorage, Mazhi Anchorage, Aoshan Joint Inspection Anchorage, Xiushan Anchorage and Tiaoqimen Outer Anchorage, covering the southern, central and northern parts of the Zhoushan port area.
- The electronic Anchorage Service Bunker Delivery System 2.0 platform was put into operation at the outer port limit. The system is supported by big data to provide international customers with a better service guarantee and efficiency.
- The number of bunker supply licenses at Zhejiang Free Trade Zone has continued to increase and operations now include cross-port bunkering operations with the Port of Shanghai.
- After witnessing positive results from its preferential policies in 1H 2020, the government granted export licenses to private refineries. It then regularly held conferences and special meetings with bunker supply companies and oil trading companies to facilitate trade, ensure supply and tap on large orders.
- As of the end of December 2020, bunker fuel exported from local refineries accounted for 1.2 million mt (25%) of Zhoushan’s supply. Refineries within Zhoushan account for 560,000 mt of bunker fuel.
- The customs and maritime authority have accelerated customs clearance procedures for fuel oil imports at Zhoushan Port.
- Various innovative regulatory measures such as oil blending, futures delivery, and transfer of bonded fuel in the warehouses have been put in place to make trade more adaptable to the different needs of bunker traders in the Zhejiang Free Trade Zone.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Manifold Times
