The global shipping industry is seeing an increase in low-emission bunker fuel availability at various ports. However, despite this expansion, the overall supply volumes remain relatively small and geographically dispersed. This fragmentation is prompting bunker buyers to enter into long-term offtake agreements to secure future supply, as current availability does not assure consistent access to these alternative fuels.
For freight forwarders and operations managers, this trend highlights the ongoing challenges in decarbonizing maritime logistics. While more options for green fuels are emerging, the limited and uneven distribution means that planning routes and selecting carriers based on fuel availability remains complex. The need for long-term agreements suggests potential price volatility and supply chain risks for carriers, which could translate into higher or less predictable bunker adjustment factors (BAFs) for shippers and forwarders. It also underscores the importance of carrier commitments to specific fuel types and regions when negotiating contracts.
This situation indicates that the transition to alternative fuels is still in its early stages, with infrastructure and supply chains needing significant development to meet future demand reliably.
