China’s bunker sales declined for second consecutive year - JLC

Chinese bunker suppliers sold about 19.45 million mt of bunkers in 2023, down from 20.08 million mt in 2022, data from market intelligence provider JLC shows.

PHOTO: View of the Port of Xiamen, China, with a ship and cranes. Getty Images

Chinese bunker sales declined for the second consecutive year. The decline was influenced by a slower-than-expected global economic recovery and more stringent inspections of bunker barges, JLC says.

VLSFO was the most sought-after product, accounting for 80% of the country's total bunker sales in 2023. HSFO and LSMGO sales made up the remaining 15% and 5%, respectively.

Meanwhile, companies with national bunkering licences sold around 15.10 million mt of bunker fuels, significantly higher than the 4.35 million mt sold by companies with regional licences.

East China emerged as the country’s most attractive bunkering region by volume, accounting for 55% of the total bunkers sold. Zhoushan-Ningbo and Shanghai are the primary ports in the region.

Zhoushan-Ningbo’s bunker sales surged for the second straight year, with bunker sales rising almost 17% on the year to 7.05 million mt. Shanghai emerged as the second-biggest port by bunker volume, with 3.40 million mt bunkers sold.

Bunker sales in the Bohai Rim region declined last year, representing 30% of China's total sales. JLC attributes this decrease to inadequate barge capacity. The main ports in the area include Qingdao, Tianjin, Dalian and Rizhao.

Meanwhile, the South China region accounted for 15% of the country’s total bunker sales and retained its third position. Key ports in the region include Shenzhen, Guangzhou and Xiamen.

JLC expects Chinese bunker sales to remain below 20 million mt in 2024 as well.

By Tuhin Roy

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