Japan bunker fuel market is currently navigating a transformative phase, characterized by a dual focus on traditional fuel affordability and a strategic pivot towards cleaner energy sources to maintain its competitive edge in the evolving global maritime landscape.
Chicago, Oct. 06, 2025 (GLOBE NEWSWIRE) — The Japan bunker fuel market was valued at US$ 5,440.74 million in 2024 and is projected to reach US$ 7,815.92 million by 2033, growing at a CAGR of 4.20% from 2025 to 2033
The Japan bunker fuel market is experiencing a period of significant activity, underpinned by robust macroeconomic performance. Strong trade figures in 2024 serve as a primary catalyst for sustained marine fuel consumption. For instance, the nation’s current account surplus was an impressive 29.26 trillion yen. Furthermore, total exports reached a substantial 104.87 trillion yen, demonstrating the sheer volume of goods moving through its maritime channels. Even with a goods trade deficit of 3.90 trillion yen and total imports of 108.77 trillion yen, the level of shipping activity remains exceptionally high.
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Automobile exports alone contributed a massive 10.85 trillion yen to the total, a sector heavily reliant on maritime logistics. Alternative trade data further reinforces this positive outlook, citing a record high for exports in 2024 at 107.09 trillion yen against a trade deficit of 5.33 trillion yen. These powerful economic indicators illustrate a vibrant trade environment. Consequently, such activity directly translates into consistent and growing demand within the Japan market, setting a promising stage for suppliers and stakeholders.
Key Findings in Japan Bunker Fuel Market
| Market Forecast (2033) | US$ 7,815.92 million |
| CAGR | 4.20% |
| By Grade | Intermediate Fuel Oil (26.74%) |
| By Vessel Type | Bulk Carrier (34.09%) |
| By Application | Commercial Shipping (41.22%) |
| By Distributor | Large Independent (38.21%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Navigating Price Premiums and Supply Shifts in Conventional Bunker Fuel Markets
The conventional fuel segment of the Japan bunker fuel market has been defined by notable price premiums and strategic supply adjustments. Between late 2023 and early 2024, the average price for Very Low Sulphur Fuel Oil (VLSFO) in Tokyo was recorded at $653 per metric ton. This pricing positioned Tokyo at a premium compared to other major regional hubs. Specifically, the premium stood at $53 per metric ton over Singapore, $35 per metric ton against Zhoushan, and $21 per metric ton compared to South Korean ports.
These price dynamics were further influenced by key supply-side events. The shutdown of Idemitsu Kosan’s 120,000 barrels per day Yamaguchi refinery in March 2024 introduced a significant variable into the supply chain. Moreover, price differentials continued into February 2024, with Tokyo’s VLSFO commanding a premium of $43 per metric ton over Hong Kong. During the same month, the premium over Busan was $24 per metric ton. These figures highlight the complex interplay of regional competition and local supply constraints affecting the market.
Operational Timelines at Major Ports Influence Bunkering Logistics and Strategy in Japan Bunker Fuel Market
Efficiency at Japan’s key ports remains a critical factor for the bunkering sector, with lead times varying across major hubs. In February 2024, bunkering operations in the primary ports of Tokyo and Chiba required a lead time of approximately five days. Similarly, the ports of Osaka and Kobe also saw lead times hovering around the five-day mark. These relatively short waiting periods underscore the operational capacity of these vital maritime centers. The efficient turnaround is crucial for vessels operating on tight schedules.
In contrast, other ports displayed longer waiting periods. For example, bunkering at Nagoya and Yokkaichi required about eight days of lead time during the same period. The longest delays were observed further west, where the ports of Mizushima and Oita had lead times between 12 and 13 days. In addition to port logistics, Japan bunker fuel market is also advancing its portside energy infrastructure. A notable project is the Ishikari Bay New Port offshore wind farm, featuring 14 turbines and supported by a 180 MWh battery storage system, which began commercial operations on January 1, 2024. Furthermore, Japan is financing the Matarbari deep seaport project with 18,000 crore Tk, signaling a long-term commitment to maritime infrastructure.
Aggressive Fleet Expansion and Modernization Signals Robust Future Fuel Demand
Japanese shipping lines are making substantial investments in fleet renewal and expansion, a clear indicator of anticipated growth in the Japan bunker fuel market. As of August 2024, the prominent container line Ocean Network Express (ONE) operated a formidable fleet of 243 ships. The total capacity of this fleet reached 1.9 million TEU. Looking ahead, ONE has ambitious plans to order 42 new container vessels between fiscal years 2025 and 2028.
This strategic expansion will add another 570,000 TEU to the company’s total capacity, necessitating a significant future fuel supply. The shipbuilding sector mirrors this confidence. Japanese shipbuilders’ order books held a healthy 29.5 million gross tonnage (GT) at the end of April 2025. In that month alone, they secured new export orders amounting to approximately 620,000 GT. Supporting this trend, Japan Marine United reported a total order volume of 720.2 billion yen in fiscal year 2024, reflecting a vibrant period of fleet modernization.
Liquefied Natural Gas Adoption Accelerates as a Viable Marine Fuel Alternative in Japan Bunker Fuel Market
The global and domestic shift towards LNG as a marine fuel is rapidly gaining momentum, with Japanese companies playing a pivotal role. By the end of 2024, the number of LNG-powered ships in operation worldwide reached 641, following a record 169 new vessel deliveries during the year. The order book remained strong with 264 new orders for LNG-fueled vessels in 2024. Moreover, the global fleet of LNG bunkering ships expanded to 60, improving the availability and accessibility of the fuel.
Japanese shipping giants are at the forefront of this transition in the bunker fuel market. As of March 2024, NYK had 17 LNG-powered ships in its fleet alongside two LNG bunkering ships to support its operations. In another impressive display of commitment, Mitsui O.S.K. Lines was operating a massive fleet of 97 LNG carriers as of March 2024. These figures underscore a decisive industry pivot toward cleaner-burning fuels, directly impacting the future composition of the Japan market.
Pioneering Biofuel Trials Showcase A Promising and Greener Fuel Pathway
The Japanese maritime industry is actively investing in and validating biofuels through a series of comprehensive trials. In a significant move, NYK initiated a trial in 2024 involving the continuous use of biofuel for three months across different vessel types. Meanwhile, Idemitsu Kosan in the bunker fuel market concluded a 10-month trial of a B24 biofuel blend on a 497 GT vessel in June 2024. A separate study later confirmed that the continuous use of a B24 bio VLSFO blend over six months had no negative effects on vessel operations.
These successful trials are paving the way for wider adoption. As of 2024, NYK’s annual consumption of biofuels is already approaching an impressive 100,000 metric tonnes. The momentum continues, with ORIX Corporation scheduled to conduct its own sea trial with biofuel on one of its vessels in November 2024. These focused efforts demonstrate a tangible commitment to exploring sustainable alternatives within the Japan bunker fuel market, offering a viable path to reduce carbon emissions in the near term.
Strategic Pivot to Zero-Emission Ammonia and Hydrogen Fuels Gains Momentum
Japan is making remarkable progress in developing next-generation, zero-emission marine fuels, particularly ammonia and hydrogen. The nation anticipates the launch of its first domestically produced ammonia-fueled engine by the end of 2024. Following this milestone, a larger-scale application of an ammonia engine is planned for 2026. The initial engine project is aiming for an ambitious mixed combustion rate with ammonia of 80% or higher. Furthermore, a subsequent project for an ammonia-powered gas carrier is targeting an even higher 95% ammonia fuel mix for its main engine.
In a landmark achievement, Japan Engine Corporation successfully completed testing of its ammonia-fueled marine engine in November 2024. Parallel advancements are being made in hydrogen technology. The hydrogen fuel cell vessel, “HANARIA,” a ship with a gross tonnage of 248 tons, was scheduled for completion in March 2024. These groundbreaking initiatives represent a long-term strategic shift in the Japan bunker fuel market, positioning the nation as a leader in maritime decarbonization technology.
Naval and Government Fleet Modernization Contributes to Evolving Fuel Demands
Government-led fleet modernization is another key driver shaping demand dynamics in the marine fuel sector. Japan is set to acquire 12 new multi-mission frigates (FFMs) between 2024 and 2028. For the 2024 fiscal year, the Japan Maritime Self-Defense Force (JMSDF) requested 174.7 billion yen for the construction of two of these new FFMs. Each vessel in this new class will have a standard displacement of approximately 4,880 tons and an overall length of around 142 meters.
As of March 31, 2024, Japan’s active naval fleet already included 50 modern destroyers and frigates. Future plans indicate continued investment. The Ministry of Defense allocated 4 billion yen in the fiscal 2025 budget to acquire six V-BAT ship-based unmanned aerial vehicles. In addition, a new class of patrol ships is under development, with each vessel having a standard displacement of about 1,920 tons. These ongoing upgrades and expansions ensure a steady demand for marine fuels from the government sector.
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Public-Private Investments Propel the Transition to A New Energy Paradigm
The future of the Japan bunker fuel market is being actively shaped by a powerful combination of competitive corporate actions and strategic government investments. Leading the charge, NYK’s fleet included 91 operational LNG carriers by March 2024, with 78 of those owned and 13 chartered. The company has a clear target to expand its LNG carrier fleet to over 120 vessels by the 2027 fiscal year. NYK’s diverse gas-powered fleet also included 13 car carriers, two bulk carriers, and two shuttle tankers as of March 2024.
This corporate leadership is matched by robust government support. The Japanese government will invest over ¥120 billion across sixteen distinct projects to develop “zero-emission ships.” Out of this, approximately $212 million is dedicated to nine projects for ammonia engines and fuel tanks. Key allocations include $43 million for Japan Marine United’s R&D facility, $42 million for Oshima Shipbuilding’s fuel tank production, and another $42 million for Japan Engine Corporation’s ammonia engine manufacturing. This is part of a larger ¥30 trillion infrastructure plan, with the New Energy and Industrial Technology Development Organization (NEDO) providing an additional ¥35 billion to support the development of these vital new technologies.
Japan Buner Fuel Market Major Players:
- Shell Plc
- PetroChina
- Asahi Tanker
- Toyota Tsusho Corporation
- Central LNG Marine Fuel Japan Corporation
- Mitsubishi Corporation
- Bunker Holding
- Marubeni Corporation
- Peninsula Petroleum
- Mitsui O.S.K. Lines
- Other Prominent Players
Key Market Segmentation:
By Grade
- Residual Fuel/Heavy Fuel Oil
- Intermediate Fuel Oil
- IFO 180
- IFO 380
- IFO 500
- By Sulphur Compliance
- High Sulphur Fuel Oil (HSFO)
- Low Sulphur Fuel Oil (LSFO)
- Ultra Low Sulphur Fuel Oil (ULSFO) 0.1%
- Distillate Fuel Oil
- Marine Gas Oil (MGO) 0.5% & 0.1%
- Marine Diesel Oil (MDO) 0.5% & 0.1%
- Alternative Fuels
- Liquefied Natural Gas (LNG)
- Biofuels
- Methanol
- Ammonia
- Others
By Vessel Type
- Containers
- Tankers
- General Cargo
- Bulk Carrier
- Fishing Vessels
- Others
By Application
- Commercial Shipping
- Cargo
- Passenger
- Leisure
- Defence & Naval Operations
- Offshore Support Vessels
By Distributor
- Oil Majors
- Large Independent
- Small Independent
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