Bulk Distributor May/Jun 16 - Page 5

China May/June 2016 Now having the right to buy their own crude oil, it will be interesting to see what the impact will be on fuel oil storage in Singapore. In the meantime, the teapot refiners and domestic demand have fed record crude oil imports, along with China’s focus on building up strategic reserves. In February 2016, China imported a record 8 million barrels of oil per day, eclipsing the US as the world’s largest importer of crude oil. As at late April 2016, a record 83 VLCCs (12 percent of the world’s fleet) were headed to China, estimated to be delivering over 166 million barrels. In the past couple of months Reuters reported that a surge in oil buying by China’s newest crude importers has created delays of up to a month for vessels to offload cargoes at Qingdao port, the hub for much of the supply into the teapots. China’s independent refiners, freed of government constraints after securing Being savvy consumers, the Chinese have been taking advantage of depressed global oil prices and buying aggressively. To date, China has filled 23 million cbm of strategic storage, which is concentrated on its East Coast. The country is now constructing an additional 21 million cbm at other strategic sites across the country. On top of this, a further 37 million cbm is planned for completion by 2020. So with the potential to ship greater volumes of refined oil products and petrochemicals both within China and for export, tank container and road tankers logistics companies could be in a for a busy time. Intermodal development This should be good news for tank container operations in the country. Yet to replace the preponderance of road tanker haulage for moving refined products major changes are needed to the regulatory and business environment to develop China’s intermodal transport networks. A report by the World Bank found that the binding constraints behind the low incidence of intermodal services in China are most likely to be found on the supply, rather than demand, side of the equation. At the r BbFR6VvR2FR&VwVF'B7FGWFVf&VBv6&VwVFW2g&VvBF&fg2B&fFW2ƗGFR"fW&ƗGf"6&v6'&F5$2FF"6W'f6W2F7W7FW"VVG2VR77VU'VƲF7G&'WF%3FvGFfԆVvE7&R66FW2F`6( 26FW&6VB7Wǒ62FFRƗGFRW6Rb&66&FrFFW"7GVGbfwW&W2f"#ǒ2W&6VB`6( 2&FR'B6FW"F&VvWBv2fVBFg&Ч'G2f&'6&6RW&6VBb6FW'2FVBVFW&VB"Vg@'G2VFVBG'V66762FRvv2vRFP&VrBW&6VBW6VBFRvFW'v26vf6Bvf'v&BvVB&RFWB5$2vRF6R'G0bFR&v7F72WGv&2'W6W72&FRƖRg&7G'V7GW&RWGv&vVVBƖVV6W'f6RvW6P&WFrB6W2'WBBVVBB6G&FRVBFV@FW&F6&FW"F&R7V66W76gV'F6BFPFW&F77FVV&V27V62&WF&WFrW&F`FW&FFW&֖2BFVƗfW'b6G&vR6W'f6W2FFP&WB6VBvVW&FR6vf6B7Wǒ6FR&fVVG2FP&&V62RR#bc#3rРrD24U%d4PDU4tTBDtD5DBB$TET4PU"DT4Rb$U"45E00Р5@$U45D@4РՐ54ՐĔt@tTt@PF&W6RFRF֖6Rb&BFW"VvRf"fr&VfVB&GV7G2"6vW2&RVVFVBFFWfV6( 2FW&FG&7'BWGv&04rUDU$ D4DDp4%$4$U45D@%TĴD5E$%UD T5EU$P$U45D@7W'&VFǒFRFVB2&VGFW&R'WB2V&RF&RgVfV@GVRF7Wǒ6FR67G&G2FRr6FV6Rb6FW&6V@&G&7'B2BFG2vFFRg&VvBF֗b6VG&W2vF6֖"V6֖2vVw&fVGW&W27V62FRU2B2FPFWfVVBbv7VVB&2VffV7Bg&VVBW66Gf g&VvB&BW'F2bFRWGv&5$227&V6vǒ6FFVFW'FR7WǒvVVBV7W&W2F&VRWf7F'2&RƖVǒF&R7&F6f'7B2FRWFVBFv6FR&6VBFW&֖WGv&v&fFRFWVFR6fW&vR@7Vff6VB66G6VFr6V7F2FFW&FvFWv0ƖR&FR'G26V6BFW6RFW&֖2VVBF&RFWfVVB6V7FvF6VVF'v7F726W'f6W27V60v&VW6W26FW"FWG2BFW&֖2f"FW"FW2fǒ5$2vVBVVBF7W7F֗6RFW&F6W'f6RFVƗfW'FF6FfW&vVB7W7FW"VVG2&6VBf7F'2ƖRvƖvW72F6FGGRfVW2FVFW&VBB7Wǒ6&WFrࠥvRVRRbp( ( ( ( ( ( 6&W76'0&vW'0V0G&VƖ7077FV06W'f6Pf6BW2@D4fvPS"3( "U"u$U( "t$t5D522( "%24%$D( "TtUDU"t5D52( "DTĔ4%$D( wwrvBG&7'B6Рwwr7&V66FW26FW&F6W47&V66FW26RCcrctEBGfW'FVFR&3Gf'VƲF7G'V'WF%2FBBb3p