Zhoushan Port Fuel Waiting Times Extend to Two Weeks, Prices Hit Highest Since March
nashnova research
Wait times for ship refuelling at Zhoushan — China's largest bunkering port — have surged from the normal one-to-two days to one to two weeks, with very-low-sulphur fuel oil prices near their highest since early March and running more than 25% above Singapore, exposing the port's vulnerability when supply chains buckle.
One to two weeks to refuel — what is happening at Zhoushan?
Bloomberg reports, citing people familiar with the matter, that vessels at Zhoushan now wait roughly one to two weeks for bunker fuel. Normal turnaround is one to two days.
This means → port throughput has dropped to roughly one-seventh to one-fourteenth of its usual pace, with ships idling in queue.
In plain terms = imagine a petrol station that suddenly has only one pump — the line goes from a few cars to dozens.
How high have fuel prices climbed?
Data from ClearLynx LLC show Zhoushan's very-low-sulphur fuel oil spot price approached its highest level since early March — when the US–Iran conflict first erupted — on September 30.
The same fuel now trades more than 25% above the equivalent grade at rival port Singapore.
This means → Zhoushan was supposed to win ships on price. Instead it is a quarter more expensive than its main competitor — the price signal has flipped.
Why did supply tighten so suddenly?
Pressure one: the Middle East conflict has restricted crude-oil imports, cutting upstream feedstock.
Pressure two: Chinese refiners have pivoted to higher-margin gasoline and diesel, squeezing output of residual fuel oil — the main feedstock for marine bunker fuel.
SCI data show state-owned refiners produced 1.12 million tonnes of low-sulphur fuel oil in August, down 13% from July.
In plain terms = less crude is coming in, and what does get refined is going to road fuels first — marine fuel is squeezed from both ends.
When will the squeeze ease?
Markets expect some relief in early October, driven mainly by a seasonal dip in demand.
The week-long National Day holiday starting Thursday will also slow bunkering activity across multiple Chinese ports, easing queue pressure.
This means → the short-term breathing room comes from demand cooling, not supply recovering — the underlying mismatch remains unresolved.
Zhoushan wants to rival Singapore — what does this episode reveal?
Beijing has long promoted Zhoushan as a regional bunkering hub to challenge Singapore, offering fuel-oil tax rebates and encouraging domestic refiners to expand low-sulphur output.
A premium exceeding 25% tests fleet loyalty directly — if refuelling costs that much more than Singapore, shipowners will vote with their hulls.
This reflects a gap in buffer capacity: Zhoushan, as an emerging hub, still lacks the resilience to absorb extreme supply shocks, and policy incentives have not yet offset supply-chain fragility.
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