How Zhoushan become the largest bunkering hub in China

Zhoushan was promoted to the world in 2017 as the next biggest bunker and service hub in China. The multi-phase plan took place by 1st establishing a free trade zone in 2017, that helped reduce customs clearance time and avoid delays in supplying vessels. Further in July 2018, a country-wide tax incentive was introduced for marine fuel blending using imported feedstock. Zhoushan bunkering Zhoushan port benefited the most from this regulation, as their strategic location boasts substantial space for storage and investment in state of the art blending facilities boost their output. More constructions are ongoing to eventually match Singapore’s capacity as the Chinese Government understands that it was one of the main reasons Singapore became the world’s largest bunkering hub. In February 2020, China starts giving out tax rebates for the sale of marine fuels, thus increasing the competitiveness of domestically produced Marine fuels. ​To be in line with the annual Chinese domestic and bonded bunker demand, Major Chinese refiners made plans to ramp up VLSFO productions that amount to more than 20 million tons of VLSFO for the year 2020. Zhoushan has become the most important port for bunker-only calls in China as Shippers avoid Hong Kong due to their new COVID-19, 14 days quarantine regulation for bunker calling vessels. Recent spread for VLSFO between Zhoushan and Singapore has been narrowed, with Zhoushan being cheaper than Singapore and other regional ports on multiple occasions. The targeted bunker volume to be sold in Zhoushan for the year 2020 is to be around 7 million tons, up from 4.1 million tons as compared to 2019. This increase in volume will make Zhoushan the largest bunkering hub in China and one of the top 5 bunkering hubs in the world.

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