Bunker Fuel Market Size, Share And Global Trend By Fuel Grade(IFO 380, IFO 180, MGO/MDO), By Seller Type(Major Oil Company, Large IndependentDistributors, Small IndependentDistributors), By End User(Container Fleet, Tanker Fleet, Bulk And General Cargo Fleet), And Regional Forecast, 2024-2032

The bunker fuel market demand is propelled by shipping industry as it is the cheapest available and most used fuel used in shipping industry. The bunker fuel market is generally classified on the basis of fuel grade i.e. Intermediate Fuel Oil 380, Intermediate Fuel Oil 180, Marine Gas Oil & Diesel Oil, and Other IFO. MGO is the highest quality of fuel used in an environmentally sensitive location such as the Caribbean Sea. It also contains only 0.1% sulphur content as compared to HFO which makes marine gas fuel costly. Strict environmental regulation and pollution norms have made ship owners to use appropriate fuel according to ship employment.

The industrial revolution in the 18^th and 19^th century has laid the world on a progressive path and opening the doors for business opportunities across the globe. This is only possible through international shipping carrying around 80% of the global trade to peoples and communities all over the world. Motor ships are primarily used in the shipping industry which driven by IC engine. Bunker fuel is majorly used in propelling the cargo carriers, industrial ships, service vessels, and miscellaneous ships. The residual oil left over gasoline, diesel, and other light hydrocarbons are extracted from crude oil during the refining process is termed as bunker fuel. In contrast to the commercial shipping, bunker fuel is enormously utilized in offshore vessels for exploration of hydrocarbons.

The intense demand for oil and gas across the world has raised the offshore exploration and production activities to meet expanding need of the hydrocarbon. Ongoing progress in the field of international trading of goods, offshore renewable energy production and offshore E&P expected to increase the requirement of bunker fuel in the market.

Tremendous development in international trading activities through shipping industries and rise in offshore exploration & production of hydrocarbon have raised the demand for marine fuel.

Bunker fuel contains highly toxic element including sulphur threatening the marine environment and aquatic life hindering its market growth. The International Maritime Organization aims to enforce a new 0.5% sulphur cap on fuel from 1^st January 2020 which may have a negative impact on the bunker fuel market.

Key Players Covered

The bunker fuel conglomerate companies are Sinopec, Aegean Marine Petroleum Network Inc., Bomin Bunkering, BP Plc, Bunker Holding Group, Chemoil Energy Limited, Exxon Marine Ltd., Gazprom Neft, Transocean Oil, Total Marine Fuels, Lukoil, and Petro China Company Ltd.

Segmentation

Regional Analysis

The global bunker fuel market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. North America is the leading region in offshore oil extraction activities with more concentration on the development of the offshore wind project. There is significant growth in inter-regional trade and other value-added services are driving the bunker fuel market in North America. Europe is considerably more productive offering cheapest transport solution comprising some of the busiest trading routes in the world. The Asia Pacific is emerging as a global leader in the bunker fuel market due to the presence of leading commodity consumption centres. However, the presence of emerging economies in the world such as India, China, Thailand, Japan, etc. are playing a key role in marine trading which boost the bunker fuel demand in the region. The Middle East is considered as one of the leading regions in terms of exporting hydrocarbon across the world. The current development in offshore projects and importing goods from neighbouring countries is expected to increase bunker fuel market.

Key Industry Developments

• In April 2019, China’s Sinopec has successfully delivered the first batch of low sulphur marine fuel to meet the International Maritime Organisation’s Sulphur 2020 cap. A totalled 6800 tonnes of marine fuel is produced and delivered in January.


• In February 2019, Shipping conglomerate Maersk and PBF logistic are pleased to announce an agreement for production and storage of 0.5% sulphur fuel on the US east coast. The agreement permits Maersk Oil Trading to supply IMO 2020 compliant 0.5% marine fuel to its customer.


• In January 2019, A data released by Maritime Port Authority of Singapore has named Ocean Bunkering Services as leading marine fuel supplier for the year 2018.