LONDON, June 17 (Reuters) – The International Energy Agency (IEA) has stated that stricter environmental regulations and a slowdown in global economic growth will reduce marine fuel demand in the coming years. This projection was included in the agency’s annual report released on Tuesday. Marine fuel sales surged last year due to disruptions in the Red Sea that forced shipping companies to take longer routes. However, the IEA predicts that demand for these fuels, also known as bunkers, may plateau at approximately 5 million barrels per day (bpd) between 2024 and 2030. This stagnation is attributed to sluggish underlying shipping growth and rising costs from increasingly stringent maritime environmental standards. In April last year, member states of the International Maritime Organization (IMO), the United Nations’ shipping agency, agreed on a carbon pricing mechanism aimed at helping the shipping industry achieve net-zero emissions by 2050. Pending final approval in October 2025, this mechanism will require ships to pay penalties for greenhouse gas emissions exceeding targets starting in 2028. According to UN data, shipping accounts for over 80% of global trade and contributes nearly 3% of greenhouse gas emissions. The IEA noted that tariffs would create a challenging environment for global trade and shipping, potentially impacting bunker demand disproportionately. This could accelerate the ongoing disconnect between economic growth and maritime trade. Attacks on vessels in the Red Sea, which initially supported bunker sales by adding 140,000 bpd to international bunkering demand last year, were only slightly above trend, the IEA said. Weak economic growth and rising freight and insurance rates acted as additional challenges, the agency added.
— new from Reuters
