GlossaryEN1 min readUpdated: Sep 20, 2026
Bunker fuel
In shipping, bunker refers both to the fuel a vessel burns and to the act of taking it on board (bunkering).
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Source: https://www.marketscreener.com/news/ocean-container-shipping-rates-could-test-record-highs-as-iran-war-fuel-spike-drives-rise-analysts-ce785bd3d18bf620
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Definition & Explanation
In shipping, bunker refers both to the fuel a vessel burns and to the act of taking it on board (bunkering). The common grades today are very low sulphur fuel oil (VLSFO), marine gas oil (MGO) and, increasingly, LNG or methanol. Since the IMO's 0.5 per cent sulphur cap, VLSFO has been the standard fuel outside emission control areas. Bunker prices are quoted in US dollars per tonne and, after charter hire, form the largest single item in vessel operating cost; they feed straight into freight rates through bunker surcharges such as BAF. Because a large container ship burns several hundred tonnes a day, even moderate price moves visibly change the economics of a round voyage — and detours around chokepoints raise consumption per shipment on top of that.
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