Since the 1950s, when bunker fuel started being used as the primary power source for vessel engines, the shipping industry became energy and capital focused with the development and usage of container ships. This infographic examines the bunker trading business in detail - from the origins of bunker fuel and important bunkering ports to the types of marine fuel used and refinery operations. Discover how AspectCTRM delivers the visibility and specialized tools for bunker traders throughout the trade process.

1. Bunker Trading
Around the World
The shipping industry became energy and capital focused with the
development and usage of container ships. The high cost of
alternative fuels, together with price volatility and the need to
maintain product quality, stability and availability all pose
challenges on profitability. Shipping companies are seeking ways
to improve their bunker fuel procurement strategies through
sophisticated purchasing programs, while bunker traders offer
risk management and hedging support strategies.
This infographic dives into the bunkering business, taking a look at important bunker trading ports,
marine fuel types and refinery operations and explains how AspectCTRM’s solution is the leading choice
for bunker traders and bunker trading businesses.
Bunker Fuel Origins
Bunker fuel started being used in the
1950s as the primary power source for
vessel engines in the shipping industry.
= The supply
of fuel for use
by ships in a
seaport.
Bunker Fuel is a derivative of
crude oil, though there is no
direct correlation between crude
oil prices and bunker fuel prices.
1.
Singapore
(42 million metric tons mt)
5. Antwerp
(6.5 million mt)
4. Hong Kong
(7.4 million mt)
3. Rotterdam
(10.5 million mt) -
Largest Port in Europe
2. Fujairah
(24 million mt) –
Strategic location,
between East and
West shipping lines
major bunkering ports in the world.
Bunkering
70%
of the cost
of operating
a vessel.
There are approximately
400
6 countries were responsible for
almost 60% of global bunker
sales in 2012:
Singapore, China, the US, the UAE,
Netherlands and South Korea
Top 5 Bunkering Ports by Volume
Other important ports include:
• Busan (South Korea)
• Gibraltar
• Panama
• Algeciras (Spain)
Future Predictions
• Los Angeles/
Long Beach (USA)
• Shanghai (China)
Maritime and Port
Authority of
Singapore released
the world’s first
National Technical
Reference for Bunker
Mass Flow Metering
(TR48: 2015) starting
January 1, 2017.
This provides both
the bunker buyers
and suppliers with
better assurance of
the quantity of
bunker delivered.
Marine Fuel Types
Bunker fuel prices
account for over
Marine Gas Oil (MGO)
and Marine Distillate Oil
(MDO)
MGO is the result of
blending LCO with distillate
oil to produce one of the
highest marine fuel grades.
MDO is manufactured by
combining kerosene, light
and heavy gas oil fractions.
It is more expensive than
the more common
intermediate fuel types.
Distillate
Fuel
Marine Fuel Oil (RMA-RML),
Residual Fuel Oil (RFO) and
Heavy Fuel Oil (HFO)
A general classification for
heavier oils, known as No.5
and No. 6 fuel oils.
Residual marine fuel grade
G is one of the most
common residual fuels
used in transoceanic ships.
Residual
Fuel
Marine Diesel Fuel or
Intermediate Fuel Oil
(IFO180 and IFO380)
A blend of gas oil and
heavy fuel oil with less gas
oil than MDO.
Intermediate Fuel Oil
(IFO)
3 Types:
Refinery Operations
1. Distillation:
Crude oil is fed into
an atmospheric
distillation column
that separates the
feed into the
subsequent
distillation fractions.
2. Desulfurization:
Under heat and
pressure, a reaction
takes place and sulphur
is separated from the
product. Sulphur must
be removed in order for
the product to meet
specifications.
3. Refining:
Crude oil is
processed and
refined into more
useful products such
as gasoline, diesel
fuel. Kerosene and
more.
4. Blending:
Crude oil blending is
used to increase the
sale price of a lower
grade crude oil by
blending it with a
higher grade, higher
price crude
Industry News
Between 2006 and 2020,
total consumption will grow
at an average annual rate of
This fuel consumption
related to U.S. trade is
forecasted to grow
3.4%from 2006 to 2020.
Global bunker fuel
market stood at
372.3 million tons
in 2013 and is
expected to reach
million tons
in 2020.
47 million tons
of bunker fuel were used in 2001 to
transport international cargo flows into
and out of the United States
2006
2020
2.6%
460
AspectCTRM for Bunker Trading
AspectCTRM provides bunker trading businesses with a solution
underpinning the entire trading lifecycle - Trade Management, Risk
Management, Financial Operations & Physical Operations.
AspectCTRM delivers the visibility and specialized tools for bunker
traders throughout the trade process.
• Manage bunker sales
• Monitor consolidated risk management
• Capture and report profitability on multi-product spot and
term bunker deals
• Allocate cargo purchases, sales, internal movements and
outturn adjustments by location
• Report credit risks associated with new and existing customers
• Report key performance indicators and metrics
Request a free trial today!
aspectenterprise.com
Bunker Trading is ready out-of-the-box with front,
middle and back office functionality to:
RESOURCES:
3plwire.com, aspectenterprise.com, morethanshipping.com, www3.epa.gov, shipandbunker.com, kittiwake.com, steamfeed.com, wisegeek.com
Copyright © 2016, Aspect Enterprise Solutions Inc. All Rights Reserved. Infographic designed by Mad Fish Digital