Global Bunker Fuel Market is estimated to be valued at US$ 25631.59  Million in 2021, according to the Global Bunker Fuel Market Report, by Fuel Grade (IPO 380, IPO 180, IPO Others, MDO/MGO), by Vessel Type (Tankers, Containers, Bulk & General Cargo, Others), by Seller (Major Oil Companies, Leading Independent Distributors, Small Independent Distributors), by Region (North America, Europe, Asia-pacific, Latin America, Middle East & Africa), published by Coherent Market Insights.  

Global bunker fuel market was valued at US$ 25631.59 Million in 2021 and is expected to register a CAGR of 5.4 % over the forecast period (2022–2030), to reach US$ 41217.42 Million by 2030. Bunker fuel is used to power the engines of aircraft and ships, among other things. Bunker fuel is less expensive than other types of fuel available on the market because gasoline accounts for the vast majority of the costs associated with shipping goods, businesses strive to use the least expensive fuel possible in order to maximize profit margins. Generally speaking, bunker fuel is classified into two categories: distillates and residual fuel oils. Bunker fuel is a type of fuel oil that is used in maritime boats to power their engines. A large amount is put into ship bunkers in order to keep the engines operating.

This paper deals with the analysis of the evolution of international trade after COVID-19, examining commodity prices, the shipping industry, and the influence of the cost of bunker fuel. To this end, we use techniques based on fractional integration, fractional cointegration VAR (FCVAR) and wavelet analysis. Monthly data relating to heavy fuel oil prices and the shipping market from October 2011 to September 2021 are used. Using fractional integration in the post-break period, a lack of mean reversion is observed in all cases, which means that, for the commodity prices and shipping market indices, a change in trend will be permanent after COVID-19 unless strong measures are carried out by the authorities. Using wavelet analysis, we conclude that the demand shock represented in the indices mentioned above has led the price of fuel oil since the beginning of the pandemic, and bunker fuel is not relevant in determining the cost of maritime transport.

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Browse 50 market data tables* and 40 figures* on "Global Bunker Fuel Market” - Forecast to 2030.

Key Trends and Analysis of the Global Bunker Fuel Market:

  • LNG as a Bunker Fuel is Likely to Witness Significant Growth
  • The global LNG bunkering market evolved over the past decade, driven by the growth in global LNG usage, clean energy demand, and its ability to reduce greenhouse gas emissions. The order and delivery of LNG-powered vessels are increasing, and the reduced natural gas prices in 2014 marked the beginning of expanding opportunities for such vessels.?
  • The conversion of the current operating vessels into LNG-based vessels is highly expensive. Hence, it is not economically viable. However, the operational cost of LNG-based vessels is expected to be least among all the fuel alternatives, once the new emission regulations become applicable. Further, a gradual shift to LNG for propulsion is more advantageous, as compared to the traditional methods of fueling ships with heavy fuel oil, marine gas oil, marine diesel oil, etc. LNG-based propulsion reduces carbon footprint significantly and increases the ship’s operational efficiency.
  • The shipping industry’s commitment to use LNG as a marine fuel continues to grow. As of 2020, according to the SEA-LNG, operational LNG vessels witnessed an astounding growth from 10 LNG operational vessels in 2010 to 175 in 2020. 2021 marked the growth of deep-sea vessel orders, with more than a dozen operators announcing multi-vessel orders. For instance, in 2021, CMA CGM S.A., a French container transportation company announced the operation of new 9 LNG container vessels and ordered ten new LNG vessels from Hyundai Heavy Industries
  • The LNG bunkering industry also registered significant investments in infrastructure construction, and as of January 2022, there are 33 LNG bunkering vessels and 141 LNG ports operational, and further 170 LNG ports to be expected to be operational by the end of 2022. As a result, the ship owners, particularly the ones that are operating in the European or American Sea, now prefer LNG-based vessels over conventional vessels. Furthermore, the LNG fueled ships have not penetrated the market for bulk carriers to a significant extent, as these ships are designed to carry heavy loads, and LNG technology is relatively new to apply for this type of vessels. The bulk carriers amount to the largest share of the in-operation ships.
  • The LNG demand is likely to increase significantly in the forecast period as the orderbook for LNG vessels continues to increase, relatively cheaper than conventional fuels, offers 23% cut in greenhouse gas emissions over oil-based marine fuel which will aid to meet the global decarbonization goals making it the most popular marine fuel in the future.

Key Takeaways of the Global Bunker Fuel Market:

  • On the basis of vessel type, the bulk & general cargo segment has accounted the largest market share of 43.3%in terms of value, followed by tankers and container ships segment respectively.
  • Asia-Pacific marked the highest market share in the bunker fuel market in 2021 in terms of revenue and is anticipated to maintain its dominance throughout the forecast period. This is attributed to various factors, including increase in presence of big customer base and rise in maritime trade activities. Moreover, presence of emerging countries such as China, Japan, and India also contribute towards the growth of bunker fuel market in Asia-Pacific region.
  • New product launches, merger & acquisitions, strategic partnership expansion, and research & development activities for the bunker fuel are key strategies adopted by players in the global bunker fuel. For instance, in September 2019, Maersk Oil Trading, the world's largest commercial buyer of marine fuel and Koole Terminals have linked a bunker fuel production deal. This agreement is likely to drive the latter into producing VLSFO bunker fuel. Long term, the arrangement may allow the corporation to increase its bunker supply volumes in Europe.


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