Global Bunker Fuel Market to Exhibit 3.1% CAGR Despite Sulphur Cap Challenges
The International Maritime Organization has imposed a stricter global 0.5% sulfur cap on bunker fuel from 2020. This restriction would present the shipping and bunker fuel markets with challenges such as enforcement and compliance.
Transparency Market Research has published its recent market research report analyzing the global bunker fuels market. Its report, “Bunker Fuel Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 – 2020” gives a thorough overview of the several important market segments. The state of these market segments in the past and present times, the regulatory scenario and its impact on several business decisions and market’s future growth prospects and the numerous factors that will be instrumental in shaping the future of the market.
Where Are Bunker Fuel Prices Heading?
The global bunker fuel market that had a valuation of 372.30 mn tons in 2013 concerning volume is expected to expand at a 3.1% CAGR between 2014 and 2020 and rise to reach 460 mn tons by 2020.
The Brent crude oil ranges between $38.70 per barrel to $41.5 per barrel that is 26% lower when compared to the same period last year.
Oil demand and tanker rates:
Countries import and store oil when it is available at a lower price. The crude tanker demand has increased as the oil prices are currently low. The increase in demand shows a positive impact on tanker rates. The increase in tanker rates, in turn, earns more for the tanker industry.
Bunker fuel prices:
Bunker fuel, also called fuel oil, refers to the fractionally distilled variety of liquid fuel derived from crude oil. Prices for bunker fuel is the biggest cost to run a ship. There is a definite correlation between the bunker and crude oil prices. The bunker fuel price for last week ranged from $228 per ton to $234 per ton. For major ports, bunker prices at Rotterdam were $156–$167 per ton. At the Port of Fujairah, bunker prices were $171–$183 per ton.
Classification of bunker fuel:
Bunker fuel can be classified on the basis of its boiling point, intended purpose and chemical composition. Bunker fuels are the fuels used expressly specifically for operating marine fleets and account for as much as 70% of the overall expenditure of a voyage for a marine vessel. Bunker fuels are also known to be more polluting as compared to other fuel types due to its highly unrefined nature. Hence, stringent regulations have been put in place implemented these days to ensure that better grades of oil, that, which are less harmful to the marine environment, be used as bunker fuels.
|Bunker Fuel Market|
|Fuel Grade Analysis||End User Analysis||Seller Type Analysis||Regional Analysis|
Global sulfur cap:
The IMO’s current sulfur cap is 3.5% for global bunker fuel outside Emission Control Areas, which have had a 0.1% sulfur limit since January 2015. With the implementation of such sulfur cap, the market is projected to be restricted to a certain level owing to the numerous fuel reduction initiatives being undertaken by the global shipping community, tightening sulfur emissions-related norms, and the rising popularity of LNG as an alternative fuel.
A detailed account of the competitive scenario of the global bunker fuel market, wherein
- Detailed business profiles
- SWOT analysis
- Porter’s Five Forces analysis
- Value chain analysis
- Analysis of recent development
- Finance related details about some of the major vendors in the market
Is available at The report of Transparency Market Research. Please Click here to get a copy of the report.