Published By : 15 Feb 2016 | Published By : QYRESEARCH
Bunker fuel is the fuel that is loaded into a ship’s bunker for charging its engines. Either obtained as a distillate or residue of crude oil, the latter is most widely used due to cost and combustibility virtues. Fuel oil, as it is also known, it is used in thermal plants to gas turbines to marine engines for transportation, electrical power applications etc. Due to the development of high-power diesel engines over a period of time that run on fuel oil, today, commercial shipping is a major industry. The occupation that has enabled trade between distantly located regions in parts of the world.
In marine fleet operations, bunker fuel costs account for almost 70% of the total voyage expenditures, the reason fleet operators need to be economical about this cost. To obtain best process, fleet operators either select a single or a combination of ports for optimizing the purchase cost of bunker fuel.
Bunker fuel is also subject to sulfur emission regulations, particularly areas that identified as emission control areas (ECA). This is to safeguard implications of combustion of bunker fuel on aquatic life and human health. As such, low sulfur fuels and middle distillate are increasingly being traded at ports as a bunker fuel.
Geographically, Asia Pacific houses some of the major ports such as the Port of Singapore and the Port of Fujairah that are major bunkering stations as well. The region being recognized as an important commodity consumption center requires robust marine infrastructure for large volume trade through waterways.
In Europe, the inland waterways are important for freight transport, which influence domestic distributive trade, economic development, and international trade as well. Some ports of Europe are junctions that connect inland waterways have emerged as important trading routes. Thus, bunkering stations have been developed in proximity of these junctions in Europe. The Port of Gibraltar and the Port of Rotterdam have emerged as significant bunkering stations due to their proximity to port junctions.
In bunker fuel distribution, small independent suppliers, large oil giants, and large independent suppliers are the major three types of companies that are involved in bunker fuel business.