Transparency Market Research launched its latest study on the global bunker fuel market, in terms of revenue and volume. The report predicts that the global bunker fuel market is likely to reach an estimated volume of 460 million tons by 2020.
The market, therefore, is poised to exhibit a moderate 3.1% CAGR during 2014-2020, expanding from 372.30 million tons in 2013. Bunker fuel is a fractionally distilled liquid fuel derived from crude oil.
Also known as fuel oil, the substance can be classified on the basis of its chemical composition, intended purpose, and boiling point. Unlike other petroleum products, bunker fuel is more polluting and highly unrefined.
Apart from fuel oil, there are other middle distillate fuels, which are also used as bunker fuels. The cost incurred on fuel accounts for approximately 70% of the overall voyage expense of a vessel.
The report states that a majority of ship operators are inclined toward purchasing a large amount of bunker fuel that could last the entire trip at once from the ports, where the prices are comparatively low.
There are two main kinds of fuel available in the global bunker fuel market at present, namely residual and distillate fuel. Among these, residual fuel accounted for a dominant share in global bunker fuel consumption in 2013.
With an increasing number of transit routes being earmarked as ECAs or emission control areas, it is imperative for vessel operators to modify their fuel consumption in the near future.
“A leading number of vessel operators will have to shift to middle distillate or low-sulfur fuels to comply with the stringent sulfur emission norms enforced across ECAs,” said a lead TMR analyst.
The bunker fuels sold by suppliers must meet the norms defined in ISO8217. Bunker fuel is presently supplied by three major seller categories: large independent bunker suppliers, small independent bunker suppliers, and major oil companies.
World Fuel Services Corporation and Chemoil Energy Limited are the leading companies in the sector and make available bunker fuel across major ports of the world. Meanwhile, other companies such as Lukoil-Bunker LLC and Gazpromneft Marine Bunker LLC supply bunker fuel only in a restricted number of ports.
With escalating demand for bunker fuel across developing regions, Asia Pacific has emerged as the most lucrative market for leading players in the global bunker fuel market. Demand for bunker fuel is exceptionally high in China and Singapore, which are also the leading contributors to the global bunker fuel market.
Asia Pacific is trailed by Europe in the global bunker fuel market on the basis of consumption. Russia is strategically positioned within the political boundaries of Europe, which has helped the country to emerge as the largest supplier of the bunker fuel oil. Russia supplies fuel oil across major ports in Europe at a reasonable price.
