What’s That: Marine Fuel
Every day, thousands of barges and towboats move fuel, chemicals, agricultural products, construction materials, and other essential goods along America’s inland waterways. While these vessels operate out of sight for many people, they play a crucial role in keeping supply chains moving. None of that happens without marine fuel.
Marine fuel powers the vessels that move products across rivers, ports, and waterways. Although it is similar to the diesel used in trucks and heavy equipment, there are a few important differences that make it unique. While most businesses never purchase marine fuel directly, its availability and cost can influence transportation expenses, product pricing, and the movement of goods throughout the economy. Understanding it helps explain an often-overlooked part of the transportation network that supports industries across the country.
What Is Marine Fuel?
Marine fuel is any fuel specifically designed and approved for use in boats, barges, tugboats, ferries, ships, and other watercraft.
What makes a fuel “marine” is its intended use and its ability to meet engine specifications. Some diesel is sold as dyed fuel, which contains a red marker identifying it for approved off-road or marine use and a different tax status than highway diesel.
Unlike highway vehicles, marine vessels don’t all rely on the same fuel. Different types of marine fuels have been developed to meet the needs of everything from small recreational boats to large ocean-going cargo ships.
What Types of Marine Fuel Are Used?
Ultra-Low Sulfur Diesel (ULSD) No. 2 is the most common marine diesel used today. It powers many workboats, tugboats, ferries, fishing vessels, towboats, and small commercial barges operating throughout North America.
ULSD No. 1 is primarily used in colder climates because it performs better in extremely low temperatures by flowing more easily during winter conditions.
Marine Gas Oil (MGO), also known as Distillate Marine Fuel (DMA), is a marine-grade distillate fuel commonly used by larger commercial and ocean-going vessels to meet emissions requirements. DMA is known for its cleaner combustion, consistent performance, and ability to reduce emissions when compared to heavier, residual marine fuels.
DMA fuels are primarily used in Category 3 marine engines or those with more than five liters per cylinder. This type of fuel is also commonly referred to as LSMGO, which stands for Low-Sulfur Marine Gas Oil. The naming emphasizes its low sulfur content, making it a preferred choice in regions with stringent environmental regulations.
Very Low Sulfur Fuel Oil (VLSFO) is a type of fuel oil with a sulfur content of 0.5% or less by weight. VLSFO is used to power large vessels across the globe.
How Marine Fuel Has Evolved
While many marine engines continue to operate on familiar fuel types, environmental regulations have significantly changed the fuels themselves.
Over the past several decades, sulfur limits have become much stricter. As a result, many commercial operators have transitioned from higher-sulfur fuels to ultra-low sulfur diesel and other cleaner-burning marine fuels that help reduce emissions while maintaining engine performance.
The creation of VLSFO, for example, was primarily driven by the International Maritime Organization’s (IMO) regulation, known as IMO 2020, which mandated a hefty reduction in the sulfur content of ship fuels from 3.5% to 0.5% starting January 1, 2020. This regulation aims to decrease the amount of sulfur oxide emissions from ships, which contribute to air pollution and respiratory problems among the global population.
Why Marine Fuel Matters Beyond the Water
America’s inland waterways and coastal shipping routes transport petroleum products, chemicals, agricultural commodities, construction materials, and consumer goods every day. When marine fuel becomes more expensive or harder to obtain, transportation costs can rise, deliveries may slow, and shipping companies often face higher operating expenses.
Industries that are particularly affected include:
- Oil and gas
- Refining
- Shipping and logistics
- Agriculture
- Manufacturing
- Construction
- Import and export businesses
- Retail distribution
How MSP Supports Marine Fuel Customers
Mansfield Service Partners supports commercial marine operators through its dedicated marine fueling location, providing reliable fuel supply for approved commercial customers. While dependable fuel availability is essential, MSP also distinguishes itself through responsive customer service and long-term customer relationship, servicing the Houston area at our dockside location, on the Buffalo Bayou. Mile marker 37 1/2.
For qualifying customers, volume-based pricing programs may also be available, helping businesses better manage fuel costs as their purchasing needs grow. Contact us today!
