Caribbean Islands Bunker Fuel Market Expected to Reach $16,404 Million By 2023
The Caribbean Islands Bunker Fuel Market was valued at $8,231 million in 2016 and is projected to reach $16,404 million by the year 2023. The number of fishing vessels is anticipated to grow at the highest rate between 2019 and 2023. With forthcoming International Maritime Organization (IMO) regulations to implement sulfur cap for marine fuels, the availability of alternative sources for marine fuel is expected to supplement the market growth of the near future.
The IMO has authorized for a global sulfur cap of 0.5% on marine fuels, which is expected to be implemented from January 1, 2020. This new reduction marks a 3.0% decrease from the current cap of 3.5%. New low-sulfur requirements are expected to have a significant impact on the global shipping and refining industries. The 2020 date is subject to a review of the required availability of marine bunker fuel. With a far lower sulfur cap coming in the near future, it is projected that MDO and MGO will become a feasible alternative for fueling needs in various maritime settings.
Fuels such as HFO (Heavy Fuel Oil) and MDO (Marine Diesel Oil) are used in most of the marine fleet engines and generators. These fuels are produced from crude oil, which is a nonrenewable fossil fuel. MGO, or Marine Gas Oil, is required by small, medium- to high-speed auxiliary units or auxiliary motors and ship engines generally found on fishing boats or smaller ferries. This grade of fuel has low percentage of sulfur, which sometimes can fit within new IMO 2020 regulations.
With new IMO 2020 regulations, the demand for MGO is projected to increase, owing to further implementation of regulations to prevent air pollution by the IMO. However, the high investment cost involved in the redevelopment of bunker fuel infrastructure and older vessel replacement from wasteful to new fuel-efficient ships will most likely contribute to even more market growth than expected.
Key Findings of the Caribbean Islands Bunker Fuel Market:
1) In 2016, residual fuel oil accounted for the maximum market revenue, and is projected to grow at a compound annual growth rate of 10.2 %.
2) IFO-380 is expected to grow at the fastest rate of 10.2% until the year 2023.
3) Small independent commercial distributor is anticipated to register the highest compound annual growth rate at11.1%.
Please kindly contact a Caribbean Fuels sales representative for all your fueling needs in the Caribbean Islands Bunker Fuel Market.