IBIA: Bunker Sales Predicted to Grow in Asia, Decline in North America

Nigel Draffin (pictured here in 2012) this week said the industry needs flexibility about how to achieve sulfur limits

The International Bunker Industry Association (IBIA) is seeking achievable targets for sulfur levels in ships' fuel and flexibility in how the industry can meet them, former IBIA chairman Nigel Draffin said Tuesday during a speech at London International Shipping Week, according to an emailed press release.

"Buyers will take the least cost route and suppliers will only respond to demand," Draffin said.

"Port authorities will look for competitive advantage whilst laboratories and surveyors will have to learn new skills."

IBIA says bunker fuel sales will grow at about 1.5 percent annually, with Draffin predicting that all the growth come from Asia, the Middle East, and Africa.

And while Singapore remains the dominant fuel supplier, other Asian countries are increasingly eating into their market share.

Meanwhile, bunker sales in the Mediterranean, Europe and South America will be flat, while bunkering will decline in North America.

IBIA notes that there are a number of alternatives to heavy fuel oil but that each of them has their own trade-offs.

For example, distillates could be produced in large quantities, but refining them boosts carbon dioxide (CO2) emissions, while methane produces little pollution but has a low flash point, creating significant storage issues, and algae- or fungus-based biofuels are carbon neutral and do not compete with food production but are not yet ready for adoption.

Recent developments in biofuel include plans for construction of a wood-based biofuel plant in Denmark and the development of fuels made from algae.