Canada Bunker Fuel Market Overview, 2030

Canada’s bunker fuel market operates within a unique and intricate framework influenced by its vast geographic expanse, multifaceted marine transportation routes, diverse climate conditions, and strong environmental oversight. As one of the countries with the longest coastlines in the world, stretching across three oceans the Atlantic, Pacific, and Arctic Canada’s maritime infrastructure plays a deeply vital role in its overall transportation and trade systems. Major commercial ports such as Vancouver, Montreal, Prince Rupert, and Halifax serve as key logistical touch points for cargo movement, and the types of vessels that dock at these facilities vary significantly, ranging from transoceanic container ships and bulk carriers to energy tankers and cruise liners. This wide diversity of vessels contributes to a multifaceted demand for marine fuels, with each ship type having specific requirements in terms of fuel composition, volume, and refueling schedules. Seasonal variations further add to this complexity, especially in Arctic and sub-Arctic zones where the shipping season is restricted to the ice-free months, resulting in a short but intense period of elevated bunker fuel consumption. Regulatory frameworks established by international bodies like the IMO, and mirrored by Canadian agencies such as Transport Canada and Environment and Climate Change Canada, have progressively reshaped the composition of the country’s bunker fuel market. The move away from traditional high-sulfur fuel oil has accelerated as shipping companies now prefer compliant fuels such as very low sulfur fuel oil, marine gas oil, and, where feasible, LNG, particularly in emission-controlled zones. Despite the current infrastructure for alternative fuels being limited and localized to certain ports, there is increasing interest in developing the necessary logistics and storage facilities to support these options, reflecting a growing acknowledgment of climate change and environmental responsibilities in Canada's maritime policies.

According to the research report Canada Bunker fuel Market Overview, 2030, published by Bonafide Research, the Canada Bunker fuel market is anticipated to grow at more than 5.84% CAGR from 2025 to 2030. The internal fuel supply chain within Canada further influences the dynamics of its bunker fuel market, driven by its oil refining capacity, transportation network limitations, regional disparities, and economic sectors that heavily rely on maritime logistics. Canada possesses several key refining hubs located in provinces such as Alberta, Ontario, Quebec, and New Brunswick, which together contribute significantly to the national fuel output. However, the geographic spread between these inland refineries and coastal bunkering locations introduces logistical challenges. Transporting marine fuels over long distances can be both time-consuming and expensive, leading to disparities in availability and pricing of bunker fuel across different provinces. This scenario encourages some ship operators to plan their refueling operations based on where marine fuels are most economically accessible, occasionally resulting in vessels opting to refuel in neighboring U.S. ports when it proves to be logistically or financially advantageous. Additionally, the nature of Canada’s economy plays a substantial role in shaping bunker fuel demand. Industries such as petroleum exports, mining, forestry, and agriculture rely extensively on marine transport, which in turn increases the demand for bunker fuels used by tankers and bulk carriers operating out of ports with specialized loading infrastructure. These vessels often undertake long-haul journeys, requiring significant quantities of fuel and contributing to fluctuations in regional demand levels. In response to these evolving needs, Canadian port authorities, government entities, and private operators are working collaboratively to develop infrastructure capable of supporting next-generation fuels, including shore-to-ship electrical connections, hybrid propulsion systems, and bunkering facilities for alternative energy sources like biofuels and hydrogen-based fuels.

Canada's bunker fuel market is diverse, encompassing a variety of fuel types tailored to meet the demands of the country's extensive maritime industry, which spans its vast coastlines along the Atlantic, Pacific, and Arctic Oceans. The most widely utilized fuel is high sulfur fuel oil (HSFO), which has been a mainstay for many years in the maritime industry. This type of fuel is primarily used in ships equipped with advanced exhaust gas cleaning systems, commonly known as scrubbers. These systems allow vessels to continue using HSFO while reducing their sulfur emissions to meet international regulations. However, with growing environmental concerns and more stringent global emission standards, there has been an increasing shift toward marine gas oil (MGO), a lower sulfur alternative that aligns better with global regulations such as the IMO 2020 sulfur cap. MGO, although slightly more expensive than HSFO, has become a more preferred option, especially in regions with stricter emission controls. Furthermore, liquefied natural gas (LNG) is increasingly being explored as a cleaner alternative to traditional marine fuels. LNG, which is stored and transported in liquid form at temperatures of -162°C, offers a significant reduction in sulfur and particulate emissions, positioning it as a more environmentally friendly solution. As Canada's maritime industry moves toward sustainability, there is a growing interest in alternative fuel types, including biofuels, methanol, ammonia, and hydrogen.

Container ships, which are responsible for transporting a wide range of cargo in standardized containers, are one of the largest consumers of bunker fuel. These vessels often traverse long distances, both domestically and internationally, and depend on a steady supply of fuel to keep their operations running smoothly. Bulk carriers, another important category, transport large quantities of unpackaged goods like coal, grain, and iron ore. These vessels also require large amounts of bunker fuel, often utilizing high-sulfur options such as HSFO to meet the power demands of their engines, which are designed for long-haul transport of heavy cargo. The oil tanker segment is another significant player in Canada’s bunker fuel market. Oil tankers, responsible for transporting crude oil and petroleum products, are high-demand consumers of bunker fuel due to the size and scale of their operations. These vessels operate over extended periods and often rely on high-sulfur fuels due to their engine requirements. Chemical tankers, specialized ships designed to carry liquid chemicals, have their own unique fueling needs, as they operate under strict safety and environmental regulations that require specific fuel types to ensure safe and efficient operations. Additionally, general cargo ships, which carry a wide variety of goods that do not fit into container or tanker categories, also contribute to the demand for bunker fuel.

Large multinational oil companies, often referred to as oil majors, play a dominant role in the Canadian bunker fuel market. These companies, including global names such as Shell, BP, and ExxonMobil, control the entire supply chain, from refining the fuel to providing it directly at major ports across the country. With their vast resources and global presence, oil majors are able to ensure consistent and reliable fuel supply for large international vessels and major shipping lines. Alongside the oil majors, large independent distributors such as Bunker Holding and World Fuel Services also serve a significant portion of the market. These companies, while not directly involved in the refining process, operate in multiple Canadian ports, offering bunkering services to a wide range of customers, from large shipping fleets to smaller, less frequent vessels. They typically provide more competitive pricing and flexible fueling options, making them a preferred choice for some operators. Smaller independent distributors, while serving more localized or niche markets, play an important role in meeting the fueling needs of vessels operating in less busy or more remote ports across Canada. These regional players may not have the scale of the larger distributors, but they are vital in maintaining access to bunker fuel in these areas.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Bunker Fuel Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• High Sulfur Fuel Oil (HSFO)
• Marine Gas Oil (MGO)
• Liquefied Natural Gas (LNG)
• Other Fuel Types

By Application
• Container Ships
• Bulk Carriers
• Oil Tankers
• Chemical Tankers
• General Cargo Ships
• Others

By Distribution Channel
• Oil Majors
• Large Independent Distributors
• Small Independent Distributors

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.