The landscape of marine fuel procurement is undergoing rapid transformation as environmental regulation, evolving fuel options and tightening supply challenge traditional purchasing practices, according to Lloyd’s Register (LR). What was once a routine operational task is now becoming a strategic priority for ship operators seeking to remain compliant and competitive, the firm argues.

The International Maritime Organization’s (IMO) updated greenhouse gas strategy, together with the EU Emissions Trading System and FuelEU Maritime rules, has shifted fuel decisions from day-to-day operations into the realm of long-term business strategy. Compliance now carries a direct financial weight, with penalties for misalignment prompting operators to reassess how they secure and manage their fuel choices.

"Fuel has become a compliance tool, a financial lever, and a strategic risk all at once. Without a coherent procurement strategy, operators stand to lose competitiveness," said Jack Spyros Pringle, Global Head, Energy Transition Advisory at LR Advisory.

Fuel market pressures reshape procurement dynamics

Lloyd’s Register notes that the balance of influence in the fuel market has shifted significantly. Traditional fuel procurement was shaped by demand, but emerging fuel types, such as LNG, methanol, ammonia and biofuels, are constrained by production volumes, regional infrastructure limitations and competition from other sectors, especially aviation.

Bunkering capacity for LNG and methanol remains concentrated in a handful of ports, creating challenges for operators who cannot predict routes months in advance. The classification society notes that operators can no longer assume compliant fuels will be available wherever vessels trade.

Biofuels as a practical short-term route

Biofuels are emerging as a near-term option due to their compatibility with existing engines, allowing operators to avoid capital costs associated with retrofitting or newbuilds, according to Lloyd's Register.

"In many cases, biofuels are cheaper than simply paying regulatory penalties, making them an attractive bridging solution," Pringle said.

Lloyd’s Register’s Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) reports improving fuel quality across the market. Of very-low-sulphur fuel oil (VLSFO) samples, 3.5% were found to be off-spec, with only a small proportion considered unusable. For example, 0.6% of VLSFO samples exceeded the 0.53% 95% confidence range of the 0.50% m/m MARPOL Annex VI sulphur limit.

Alongside these findings, the uptake of FAME-based blends — particularly B30 RF — continues to rise. Clarification from MEPC 83 that treats biofuel blends of up to 30% as conventional fuels for NOx compliance has removed a significant barrier for operators looking to increase biofuel use.

The introduction of ISO 8217:2024, which establishes detailed specifications for alternative and renewable fuels, is providing additional structure. FOBAS testing shows strong adoption of biofuel blends in major bunkering hubs, including Singapore, Algeciras and Antwerp, with no operational issues reported.

Documentation and certification challenges

Lloyd’s Register highlights that documentation has become as important as the fuel itself. Regulators apply differing emissions factors, sustainability criteria and accounting methods, meaning a fuel that delivers emissions reductions in one jurisdiction may provide a smaller benefit under another.

To support buyers, LR has developed the Marine Fuel Disclosure Statement, a consolidated declaration that references bunker delivery notes, certification schemes, emissions factors, and regulatory circulars. This enables buyers to demonstrate compliance across multiple regulatory systems and provides suppliers with a competitive advantage in a highly scrutinised market.

Navigating a multi-fuel era

Beyond biofuels, other alternative fuels are progressing, each with distinct challenges. LNG faces price volatility and methane slip concerns, while methanol production is increasing, but global supply remains limited. Ammonia standards for bunkering, safety, and emissions are still being finalised, according to Lloyd's Register.

The classification society argues that shipping is entering a multi-fuel era where no single fuel will dominate across all regions and operational profiles.

LR is helping operators develop long-term fuel strategies that consider fleet characteristics, expected trade patterns, supply mapping, and procurement mechanisms such as long-term offtake agreements or collaborative sourcing.

"Rather than offering a generic solution, the goal is to give operators confidence that they can secure compliant fuels in the right place, at the right time, and at an economically sustainable price," Pringle remarked.

Strategic planning over transactional behaviour

Geographical variation continues to complicate procurement decisions. Major hubs such as Rotterdam and Singapore are investing heavily in future fuels, while availability remains uneven elsewhere. Regional price differences, combined with competition from other industries such as aviation, increase the pressure on limited supplies.

"These dynamics underline the importance of early action. Securing supply is no longer a matter of simply arriving at a port and purchasing what is on offer. It requires foresight, planning, and in many cases, long-term commitments," Pringle noted.

The classification society concludes that operators who treat fuel procurement strategically will gain a competitive advantage, while those relying on transactional purchasing risk rising costs and regulatory penalties.

"It doesn't matter what happens in the details; future fuels will be part of the solution. The real question is whether you have a strategy to secure them," Pringle commented.