The global bunker oil market is expected to grow rapidly over the forecast period owing to rising demand from the ship transportation industry. Bunker oil is emerging as the primary fuel for marine and shipping industry. Vessel and ship operators prefer the lowest priced fuel oil available in the market as it accounts for over 65% of the total travel expenses. Due to this factor, vendors and suppliers face dynamic competition in the bunker oil market. This situation is also expected to create opportunity to gain high-profit margin owing to emergency fuel requirements. Bunker oil is provided to fulfill the fuel requirements at ports. As voyage is the most preferred transportation mode for trade which in turn requires more fuel and has to refuel the tanker several times during the voyage. This is anticipated to bolster the global bunker fuel oil market demand over the forecast period. Vessels comprise large load-bearing capacity as compared to other transportation modes which are leading the industrial growth at a rapid pace. This is another major factor driving bunker oil industry growth over the foreseeable future.
Increasing airline traffic had supported the shipping industry especially cargo vessels which are anticipated to witness a positive impact on the bunker oil market. Growing naval fleet mostly in countries such as China, Brazil, Pakistan, Russia, and the U.S. is expected to boost the market. Bunker oil also facilitates refueling during sailing which is anticipated to augment the market growth over the forecast period. Emergence of different oil grades in the market is anticipated to create ample opportunities for the participants to expand the product portfolio. Stringent regulations regarding fuel quality are projected to hinder the bunker oil market growth over the next seven years.
Based on fuel grades, the market has been segmented into IFO 380, IFO 180, IFO others, and MGO/MDO. Intermediate Fuel Oil (IFO) is a blend of heavy fuel oil and gasoil, having gasoil in lower ratio than marine diesel oil. Marine Gas Oil (MGO) and Marine Diesel Oil (MDO) are used for marine transportation and graded on the basis of viscosities. Bunker oil industry has been also classified on the basis of vessel type as container vessels, tanker vessels, and bulk & general cargo vessels. Container vessels were the largest end-user segment for bunker oil market in 2014 owing to increasing industrial transportation demand worldwide. The market is also expected to witness the fastest growth on account of globalization and increasing export and import activities. Tanker vessels were the second major market owing to increasing liquid material trade activities.
North America was the dominant bunker oil market in 2014 on account of a large number of registered fleets and a huge marine base. The region is anticipated to witness stagnant growth over the forecast period. Asia Pacific is expected to witness the fastest growth owing to increasing export and import activities mostly in emerging countries such as China, India, Indonesia, and Malaysia. In Europe, the market is projected to witness stagnant growth over the next seven years. Key market players operating in the global bunker oil industry include Aegean Marine Petroleum Network, World Fuel Services Corporation, and Chemoil Energy Limited.
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