LONDON--(BUSINESS WIRE)--SpendEdge has been monitoring the global bunker fuel market and the market is poised to experience spend growth of more than USD 60 billion between 2019-2024 at a CAGR of over 6% during the forecast period. Request Free Sample Pages.
Read the 126-page research report with TOC and LOE on "The Global Bunker Fuel Market – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
Bunker fuel is one of the commonly used fuel types in bulk carriers and general cargo vessels that are used to ferry the majority of domestic and international freight. Such an extensive usage will contribute to spend growth in the bunker fuel market. It is used to run the dual-fuel technology engines to facilitate sustainable and economic operation which will drive demand growth in this market.
In terms of consumption, APAC will account for a substantial share majorly because of the concentration of some of the busiest ports in this region. By virtue of being one of the most favored destinations for the manufacturing of consumer goods, the ports support an increasing frequency of cargo transport between nations. This increase in the frequency of cargo transport will propel spend momentum in the bunker fuel market.
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Insights into the market pricing trends
As a derivative of crude oil, the price of bunker fuel will fluctuate owing to the frequent volatilities observed in the price of crude oil during the forecast period.
- Bunker fuel suppliers will incur a substantially large exploration cost. This high cost is attributed to the complexity and the high risks associated with finding and maintaining oil and gas reserves in hostile regions. According to the bunker fuel price trends, this will have an inflationary impact on buyer’s procurement expenditure in the bunker fuel market.
What are the strategies to adopt to optimize procurement spend in this market?
The bunker fuel price trends imply a substantial increase in service provider’s OPEX which will result in a gradual decline in their profit margin. To compensate for this, suppliers are expected to increase the market price. In view of this, this procurement intelligence report has listed the top bunker fuel suppliers, SLA agreement insights, and the selection and negotiation strategies that buyers must undertake to achieve optimal procurement in this market.
Engage in long-term contracts with bunker fuel suppliers
Engagement with suppliers over a long-term contract will aid buyers 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.
Renegotiate prices in case of sharp decline in spot prices
It is advised that buyers constantly analyze spot prices of bunker fuel with contract prices and revisit the pricing terms in case there is a sharp decline in the prices of feedstocks such as crude oil. Suppliers partially pass on the benefit in case of a fall in the price of the product. However, if the price falls sharply, negotiations can result in higher cost savings for buyers.
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Some of the key topics covered in this report are:
- Bunker fuel market spend segmentation by region
- Total cost of ownership analysis in the bunker fuel market
- Regional spend opportunity for bunker fuel suppliers
- Bunker fuel suppliers cost structures
- Bunker fuel pricing models analysis
- Bunker fuel procurement best practices
- Category management objectives
- Cost saving opportunities in the bunker fuel market
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