This research study analyzes the global market for bunker fuel in terms of their market segmentation based on fuel grades, seller type, end-users and geography. Market data in terms of sales revenue (US$ Bn) and volume (Mn Tons) are presented in this report for the period 2013 to 2020. The analysis included in the report provides deep insights in the bunker supply industry. Some of the most prominent drivers of the global bunker fuel market is growing cargo and fuel shipments through container ships and tanker vessels. Swift evolving demand for different grades of fuel due to need for compliance to sulfur emission rules also influence the demand for bunker fuel.

Major end-users of bunker fuel analyzed in this report include tankers, container ships, bulk and general cargo, and others. Based on fuel grads, this report studies the global bunker fuel market for MDO/MGO, IFO 380, IFO 180, Other IFO (IFO 500 & 700), LS 380 and LS 180. Major oil companies, leading independent distributors, and small independent distributors are the bunker fuel sellers studied in this report. Market size and forecast in terms of sales revenue and volume for the mentioned segments are presented in this study for the period 2013 to 2020 along with respective CAGRs for the period 2015 to 2020.

Along with quantitative information, qualitative information sets and assessment tools are provided in this study for better analysis of the overall market scenario and future prospects. Information such as market inclination insights and drivers, challenges and opportunities assists the readers for understanding the ongoing trends in the global bunker fuel market. Tools such as market positioning of key players, and attractive investment proposition provide the readers with insights on the competitive scenario of the global bunker fuel market. This report concludes with company profiles section that highlights major information about the key players engaged in development, manufacture and sale of bunker fuel.

Bunkering industry uses two primary types of fuel: distillate fuel and residual fuel, where residual fuel occupies the largest share in bunker fuel consumption. Residual fuels such as IFO 380, IFO 180 and others are the most preferred fuel grades. The sulfur content in LS grade fuels is significantly lower as against IFOs. For production of LS fuels, blending with quality distillates is needed. IFO 308 fuel has higher content of sulfur and viscosity as against IFO 180, thus making it cheaper. IFO 380 is currently the most commonly available fuel grade and is traded worldwide; and occupies the largest revenue and volume share in the global bunker fuel market. Further contributors to the dominance of IFO 380 grade bunker fuel is the fact that a majority of marine vessels are fitted with IFO 380 combustion engines. However, older ships with minimal engine modification are not capable of utilizing IFO 308 for combustion and thus mostly depend on IFO 180 grade fuel.

Considering the distillate fuel type, MGO and MDO grade fuels are most commonly used. Initially, the use of MGO and MDO was majorly limited to smaller marine vessels only. Though, the emergence of stringent sulfur emission regulations in the marine industry have urged fleet owners to increasingly adopt this category of fuels and substitute residual grade fuels.

At present, bunker fuel is majorly sold in the wholesale market and the three primary market positions in the market that a seller may occupy is bunker trading, physical supply and bunker brokering. A bunker fuel seller may occupy either one or more of such positions. The fundamental difference between major oil companies and the rest seller types is that the major oil companies individually own and operate oil refineries. Hence, these players have an advantageous position to operate as physical fuel suppliers, which allows them to establish robust long-term engagements with buyers. Large independent distributors own physical assets such as delivery barges, storage terminals and lending facilities; whereas small distributors lack this aspect. Small distributors generally have presence in regional markets and selected ports only. However, due to high market concentration of small distributors, this segment is considered as a significant challenge to large independent distributors and will retain its dominance in the market through the forecast period.

Generally, fleet operators prefer to purchase bunker fuel at ports where the cost is the cheapest. Since fuel costs over 65% of the total voyage expenditure, fleet operators are highly selective when it comes to refueling ships. While some ships prefer to purchase a large portion of their fuel requirement from a single port, other, particularly smaller vessels may spread their fuelling pattern from starting to destination of voyage. The demand for bunker fuel by each end-user category differs individually and corresponds to the nature of cargo trade worldwide. Bulk and general currently occupies the largest share in terms of both volume and revenue in the bunker fuel market. This segment however, is estimated to lose a minor portion of its market share to container ships segment. The commodities that were earlier transported through bulk and general cargo are not increasingly preferred to be shipped by container vessels. Bulk carriers are majorly restricted to transport heavy commodities such as iron, coal and steel etc. major demand locations such as China and others have recently reported a marginal decline in demand restricted to certain heavy commodities. Hence, this decline will not have a significant impact on the segment.

At present Asia Pacific occupies the largest revenue share in the global bunker fuel market (38.5% in 2014). The region is anticipated to remain the largest regional market through the forecast period. With having among the most sophisticated container handling ports in the region, the traded volume of bunker fuel in Asia Pacific is significant and it is likely that the region will progress at the fastest growth rate during the forecast period.

Furthermore, due to the presence of ECAs in trade routes of North America and Europe the demand for residual fuels such as IFO 380 is anticipated to shunt. Due to reduction in imports of crude oil and petroleum products in North America, the volume of tanker trade in the region is anticipated to take a toll. Due to this, North America market will experience a slight decline in its market share during the forecast period. In light of the passing economic crisis in Europe, the region has experienced decline in the region’s consumption. As several refineries in Europe have come to closure, the demand for crude oil and tankers is estimated to undergo a flat growth, sustained by Russia.a

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Bunker Fuel market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Bunker Fuel market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Bunker Fuel market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Bunker Fuel market?
• Which is the largest regional market for Bunker Fuel market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Bunker Fuel market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Bunker Fuel market worldwide?