Bunker Fuel Market Analysis
Spend growth of this market has the potential to touch a value of over USD 60 billion with spend momentum accelerate at a CAGR of more than 6% between 2019-2024. Out of the types of vessels that use bunker fuel, bulk carriers and general cargo vessels are extensively used to transport domestic and international freight. This is catering to an exponential spend growth in the bunker fuel market. This fuel type is being increasingly adopted in dual-fuel technology engines to achieve sustainable and economic operations. This is driving spend momentum in the market.
Top Spending Regions in the Bunker Fuel Market
APAC will dominate the global bunker fuel market in terms of consumption, followed by Europe during the forecast period.
APAC
The concentration of some of the world's busiest ports in the APAC countries is driving demand for bunker fuel in this region at an exponential rate. APAC is one of the most favored regions among the manufacturers of consumer goods which is increasing the frequency of cargo movement between this region and other nations in North America and Europe. This is increasing the consumption of bunker fuel and is catering to market's spend growth.
Europe
Europe accounts being the second-largest consumer and leading producer of bunker fuel. EU's external seaborne freight trade is seaborne and the region's heavy reliance on the import of various goods and raw materials from regions such as APAC and MEA are attributed to this consumption trend in the bunker fuel market.
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What are the Key Price Trends in this Market?
- The procedure of obtaining bunker fuel entails a huge expenditure owing to the complexity and the high risks associated with finding and maintaining oil and gas reserves in hospitable regions. According to the bunker fuel price trends, this will increase the market across regions.
- The hazardous nature of this commodity makes it imperative for bunker fuel suppliers to engage proper safety measures to avoid spillage and wastage. This will drive their logistics costs which will have an inflationary impact on procurement expenditure in the bunker fuel market.
- As bunker fuel is derived from crude oil, it follows a similar price trend as that of crude oil. Additionally, factors such as political instability in MEA and shale gas revolution in the US have also resulted in the price volatility of crude oil in the past five years.
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Insights Offered in this Bunker Fuel Market Report
- Global and regional spend potential for the bunker fuel market for the period of 2019-2024
- Supplier relationship management practices in the bunker fuel market
- Supplier margins and selection criteria in the bunker fuel market
- Top bunker fuel suppliers and their cost structures
- Top bunker fuel suppliers in the US and their cost structures
- Bunker fuel market spend analysis in the US
- Bunker fuel price trends, and forecasts
- Cost drivers influencing the bunker fuel prices
Insights into Bunker Fuel Supply Market
- Bunker fuel suppliers are making investments in technologies such as wellbore profile management and debottlenecking of the production system for optimizing production processes and increasing the yield. This will help suppliers to reduce their overall operating cost by managing raw material supply bottlenecks and streamlining the supply chain process.
- Buyers are advised to engage in long-term contracts with bunker fuel suppliers to avail discounts on prices for per unit volume and value-added services such as training for workers regarding handling and use of bunker fuel. Long-term contracts will help buyers to optimize the threshold prices that will result to more cost savings.
- Shortage of substitutes for bunker fuel is expected to help sustain the bargaining power of suppliers during the forecast period
Insights into Some of the Leading Bunker Fuel Service Providers
The supply market dynamics hint at a substantial hike in suppliers' OPEX which will drive buyer's procurement spend. Keeping such dynamics in mind, strategic selection of suppliers and maintaining an effective supplier relationship management are observed to facilitate buyers with optimized procurement expenditure and better category management in the bunker fuel market. This bunker fuel market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top background check service providers. The top bunker fuel suppliers highlighted in this report include:
- Exxon Mobil Corp.
- Royal Dutch Shell Plc
- TOTAL SA
- PJSC Gazprom Neft
- PJSC LUKOIL
- Valero Energy Corp.
Criteria to select suppliers in this dynamic bunker fuel market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
