This week’s Chart Market Monitor highlights the significant increase in Brazilian crude oil shipments to China, which reached a record 93.6 million barrels in Q2 2025, marking a 53% rise from Q1 and a 60% year-on-year surge compared to Q2 2024. These are the highest second-quarter volumes recorded in recent years, far surpassing previous benchmarks from 2023 and 2024.
China now absorbs approximately 40% of Brazil’s crude exports, reinforcing its role as the dominant buyer. Major Chinese discharge ports include Lanshan, Tianjin, Ningbo, Yantai, Qingdao, and Dongjiakou, with the North China region accounting for 73% of total arrivals.
This trend reflects a crucial shift in China’s crude sourcing strategy. The country is increasingly prioritizing long-haul volumes from Brazil, almost entirely lifted on VLCCs. This is supported by Petrobras, which has expanded both term contracts and spot sales to Chinese buyers such as Unipec and Sinochem. Demand has also been driven by China’s continued efforts to rebuild its strategic petroleum reserves (SPRs), particularly amid price dips in early 2025, and by a rebound in buying activity from independent “teapot” refiners in Shandong province following the relaxation of import quotas and improved refinery margins.
In addition, recent corporate activity by the Brazilian energy group underscores the long-haul shift. Petrobras is actively courting Chinese investment to revitalize Brazil’s domestic shipbuilding industry. During the Brazil–China Naval Industry Forum, the company signed memoranda of understanding with Chinese shipyards as part of its broader strategy to commission 25 new vessels by 2030 via its shipping subsidiary, Transpetro.
Petrobras is also restructuring its upstream portfolio, exploring the divestment of the Polo Bahia onshore fields to redirect capital toward export logistics and offshore production. At the same time, it has announced a R$26 billion (~US$4.8 billion) investment to integrate the Reduc refinery with the Boaventura logistics hub, enhancing flexibility in crude exports. On the exploration front, Petrobras and Chevron-led consortia secured rights to key offshore blocks in the Foz do Amazonas basin.
The VLCC segment has already started experiencing a rise in the demand for the prospective trade route. Since March, the 7-day moving average of “dirty tonne-miles” for Brazil–China shipments has surpassed 2 billion nautical miles, up approximately 1 billion from the same period in 2023 and 2024. This surge is tightening VLCC availability, particularly in the Atlantic Basin, as voyages from Brazil to China take roughly 100 days round trip, compared to about 60 days for Middle East–Asia routes. As a result, freight rates for dirty VLCC cargoes may face upward pressure, especially in the Atlantic. If the strength of Brazil-to-China flows persists, the shift will not only reshape trade patterns but also exert a tightening movement on the AG VLCC supply.
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Creating a sustainable world requires us to embark on a journey towards a zero emission future, where every step is a commitment to preserve our planet for future generations.
Albert Greenway
Environmental Scientist, Sustainability Expert
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Increased Use of Renewable Energy:
Shipping companies are embracing renewable energy sources to power onboard systems and reduce emissions during port operations. Solar panels and wind turbines are being installed on vessels to generate clean energy, reducing reliance on auxiliary engines, and cutting down emissions. Shore power facilities in ports allow ships to connect to the electrical grid, eliminating the need for onboard generators while docked.
Collaboration and Industry Partnerships:
Recognizing that addressing emissions requires collective action, shipping companies, governments, and organizations have formed partnerships and collaborations. These initiatives focus on research and development, sharing best practices, and promoting knowledge transfer. Joint projects aim to develop and deploy innovative technologies, improve infrastructure, and create a supportive regulatory framework to accelerate the industry's transition towards a greener future. The Zero Emission Shipping - Mission Innovation.
To pave the way for a greener future in shipping, the availability of alternative fuels plays a vital role in their widespread adoption. However, this availability is influenced by factors such as port infrastructure, local regulations, and government policies. As the demand for cleaner fuels in shipping rises and environmental regulations become more stringent, efforts are underway to improve the accessibility of these fuels through infrastructure development, collaborations, and investments in production facilities.
Liquefied Natural Gas (LNG) infrastructure has seen significant growth in recent years, resulting in more LNG bunkering facilities and LNG-powered vessels. Nonetheless, the availability of LNG as a marine fuel can still vary depending on the region. To ensure consistent availability worldwide, there is a need for further development of LNG supply chains and infrastructure. For biofuels, their availability hinges on production capacity and the availability of feedstock. Although biofuels are being produced and utilized in various sectors, their availability as a marine fuel remains limited. Scaling up biofuel production and establishing robust supply chains are imperative to ensure wider availability within the shipping industry.Hydrogen, as a fuel for maritime applications, is still in the early stages of infrastructure development. While some hydrogen vessels have been tested or introduced in the first quarter of last year, the infrastructure required for hydrogen production and distribution needs further advancement.
Ammonia, as a marine fuel, currently faces limitations in availability. The production, storage, and handling infrastructure for ammonia need further development to support its widespread use in the shipping industry.Methanol, on the other hand, is already a commercially available fuel and has been used as a blend with conventional fuels in some ships. However, its availability as a standalone marine fuel can still be limited in certain regions. Bureau Veritas in October 2022 published a White Paper for the Alternative Fuels Outlook. This white paper provides a comprehensive overview of alternative fuels for the shipping industry, taking into account key factors such as technological maturity, availability, safety, emissions, and regulations.
Creating a sustainable world requires us to embark on a journey towards a zero emission future, where every step is a commitment to preserve our planet for future generations.
Albert Greenway
Environmental Scientist, Sustainability Expert
Increased Use of Renewable Energy:
Shipping companies are embracing renewable energy sources to power onboard systems and reduce emissions during port operations. Solar panels and wind turbines are being installed on vessels to generate clean energy, reducing reliance on auxiliary engines, and cutting down emissions. Shore power facilities in ports allow ships to connect to the electrical grid, eliminating the need for onboard generators while docked.
Collaboration and Industry Partnerships:
Recognizing that addressing emissions requires collective action, shipping companies, governments, and organizations have formed partnerships and collaborations. These initiatives focus on research and development, sharing best practices, and promoting knowledge transfer. Joint projects aim to develop and deploy innovative technologies, improve infrastructure, and create a supportive regulatory framework to accelerate the industry's transition towards a greener future. The Zero Emission Shipping - Mission Innovation.
To pave the way for a greener future in shipping, the availability of alternative fuels plays a vital role in their widespread adoption. However, this availability is influenced by factors such as port infrastructure, local regulations, and government policies. As the demand for cleaner fuels in shipping rises and environmental regulations become more stringent, efforts are underway to improve the accessibility of these fuels through infrastructure development, collaborations, and investments in production facilities.
Liquefied Natural Gas (LNG) infrastructure has seen significant growth in recent years, resulting in more LNG bunkering facilities and LNG-powered vessels. Nonetheless, the availability of LNG as a marine fuel can still vary depending on the region. To ensure consistent availability worldwide, there is a need for further development of LNG supply chains and infrastructure. For biofuels, their availability hinges on production capacity and the availability of feedstock. Although biofuels are being produced and utilized in various sectors, their availability as a marine fuel remains limited. Scaling up biofuel production and establishing robust supply chains are imperative to ensure wider availability within the shipping industry.Hydrogen, as a fuel for maritime applications, is still in the early stages of infrastructure development. While some hydrogen vessels have been tested or introduced in the first quarter of last year, the infrastructure required for hydrogen production and distribution needs further advancement.
Ammonia, as a marine fuel, currently faces limitations in availability. The production, storage, and handling infrastructure for ammonia need further development to support its widespread use in the shipping industry.Methanol, on the other hand, is already a commercially available fuel and has been used as a blend with conventional fuels in some ships. However, its availability as a standalone marine fuel can still be limited in certain regions. Bureau Veritas in October 2022 published a White Paper for the Alternative Fuels Outlook. This white paper provides a comprehensive overview of alternative fuels for the shipping industry, taking into account key factors such as technological maturity, availability, safety, emissions, and regulations.
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