The Chinese port of Zhoushan has overtaken Fujairah to become the world's third-largest bunkering port this year Zhoushan saw about 3.5 million mt of bunker demand in the first half of the year, compared with about 3.4 million mt in Fujairah according to estimates from Ship & Bunker and 2050 Marine Energy's quarterly market survey.
Singapore remains the world's largest bunkering hub, with about 25 million mt of sales in the first half, and Rotterdam in second place with 5.2 million mt.
Zhoushan's rapid growth over the past few years has come about from a conscious effort from the Chinese government to take a greater share of global bunker demand.
"Zhoushan continues to grow in size and importance, and has been perhaps the major beneficiary of the recent loss of US West Coast bunker demand," Adrian Tolson, owner of consultancy 2050 Marine Energy, told Ship & Bunker. "And with continuing OPEC+ cutbacks alongside severely heightened regional geopolitics, it's hard to see Fujairah in the ascendancy."
Zhoushan's rapid growth over the past few years from an average of about 1 million mt Zhoushan continues to grow in size and importance, and has been perhaps the major beneficiary of the recent loss of US West Coast bunker demand. Adrian Toison per quarter in 2019 to about 1.8 million mt per quarter this year - has come about from a conscious effort from the Chinese government to take a greater share of global bunker demand.
Tax rebates on VLSFO production have made cheaper material available to Zhoushan, making it more competitive with other ports in the region.
Prices have been made more competitive over the past year by the import of cheap Russian crude into China, and some demand has also been gained at the expense of Hong Kong. At the same time, crude production cuts by Saudi Arabia and other OPEC members have reduced demand for the tankers that Fujairah's bunker market relies upon this year.