Bunker Fuel Market By Fuel Grade (MGO/MDO, IFO 380, IFO 180, Other IFO (IFO 500 & 700), LS 380, LS 180), By Seller (Major Oil Companies, Leading Independent Distributors, Small Independent Distributors), By End User (Tanker Vessels, Container Vessels, Bulk And General Cargo Vessels) - Growth, Share, Opportunities & Competitive Analysis, 2015 - 2020

This research study analyses the global market for bunker fuel in terms of market segmentation based on fuel grades, seller type, end-users, and geography. This report presents market data in terms of sales revenue (US$ Bn) and volume (Mn Tons) for the period 2013-2020. The analysis included in the report provides deep insights into the bunker supply industry. Some of the most prominent drivers of the global bunker fuel market are growing cargo and fuel shipments through container ships and tanker vessels. The swiftly evolving demand for different gra

des of fuel due to the need for compliance with sulfur emission rules also influences the demand for bunker fuel.

Major end-users of bunker fuel analyzed in this report include tankers, container ships, bulk, general cargo, and others. Based on fuel grades, this report studies the global bunker fuel market for MDO/MGO, IFO 380, IFO 180, Other IFO (IFO 500 and 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 2013–2020, along with respective CAGRs for the period 2015–2020.

Based on geographical distribution, the global bunker fuel market is studied for the following regions:

  • North America
  • Europe
  • Asia Pacific
  • Middle East
  • Rest of the World

Similar to the segmentation by fuel grade, end-users, and seller type, cross-sectional market size, and forecast for the considered regional markets for the term 2013 to 2020 (value and volume)

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

Based on the fuel grades, the global bunker fuel market is classified as follows:

  • IFO 380
  • IFO 180
  • Additional IFO (IFO 500 and 700)
  • LS 380
  • LS 180

The bunkering industry uses two types of fuel: distillate fuel and residual fuel, with residual fuel accounting for the majority of 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 than that in IFOs. For the production of LS fuels, blending with quality distillates is needed. IFO 308 fuel has a higher content of sulfur and viscosity than IFO 180, thus making it cheaper.

IFO 380 is currently the most commonly available fuel grade, is traded worldwide, and occupies the largest revenue and volume share in the global bunker fuel market. Further contributing to the dominance of IFO 380 bunker fuel is the fact that the 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 mostly limited to smaller marine vessels. Though the emergence of stringent sulfur emission regulations in the marine industry has urged fleet owners to increasingly adopt this category of fuels and substitute residual-grade fuels,

Based on the type of seller, the global bunker fuel market is classified into:

  • Major Oil Companies
  • Leading Independent Distributors
  • Small Independent Distributors

At present, bunker fuel is mostly sold in the wholesale market, and the three primary market positions that a seller may occupy are bunker trading, physical supply, and bunker brokering. A bunker fuel seller may occupy either one or more of these positions. The fundamental difference between major oil companies and the rest of the seller types is that the major oil companies individually own and operate oil refineries.

Hence, these players are in 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 a presence in regional markets and selected ports only. However, due to the high market concentration of small distributors, this segment is considered a significant challenge to large independent distributors and will retain its dominance in the market through the forecast period.

Based on the end-users, the global bunker fuel market is classified as follows:

  • Tankers
  • Container Ships
  • Bulk and General Cargo
  • Others

Generally, fleet operators prefer to purchase bunker fuel at ports where the cost is the lowest. 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 requirements from a single port, others, particularly smaller vessels, may spread their fueling pattern from the start to the destination of their 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 occupy 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 the container ship segment. Commodities that were previously transported by bulk and general cargo are increasingly being shipped by container vessels. Bulk carriers are mostly restricted to transporting heavy commodities such as iron, coal, 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.

Based on geographical segmentation, the global bunker fuel market is studied for:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East
  • Rest of the World

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 some of the most advanced container handling ports in the region, the traded volume of bunker fuel in the Asia Pacific is significant, and the region is expected to grow at the fastest rate during the forecast period.

Furthermore, the presence of ECAs on trade routes between North America and Europe is expected to shunt demand for residual fuels such as IFO 380. Due to the 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, the North American 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 a decline in its consumption. As several European refineries close, demand for crude oil and tankers is expected to remain flat, supported by Russia. 

Frequently Asked Questions:

The market for Bunker Fuel Market is expected to reach US$ 288.3 Bn By 2020.

The Bunker Fuel Market is expected to see significant CAGR growth over the coming years, at 2.8%.

The report is forecasted from 2015-2020.

The base year of this report is 2014.

Chemoil Energy Limited, Gazpromneft Marine Bunker LLC, Exxon Mobil Corporation, Royal Dutch Shell plc are some of the major players in the global market.

Choose License Type
Trusted By
Published Date:  Mar 2017
Category:  Energy Utilities
Report ID:   58364
Report Format:   PDF
Pages:   120
Rating:    4.7 (70)
Delivery Time: 24 Hours to 48 Hours   
Connect With Us
24/7 Research Support