North America and Latin America Marine Diesel Market

The North America and Latin America Marine Diesel market is driven by increasing maritime trade activities and the rising demand for energy-efficient marine engines as shipowners modernize fleets to enhance fuel efficiency and meet international emission standards. However, the market faces challenges such as high initial investment costs for upgrading engines and fuel systems, along with stringent environmental regulations like the IMO 2020 sulfur cap, which require costly compliance measures. Despite these restraints, significant opportunities lie in the ongoing expansion and modernization of port infrastructure across both regions, alongside the steady growth in offshore oil and gas exploration and production activities, which continue to boost demand for reliable marine diesel fuels to support offshore operations and larger, modernized fleets. FIGURE 3 NORTH AMERICA AND LATIN AMERICA MARINE DIESEL MARKET: MARKET GROWTH FACTOR ANALYSIS (2019-2035) Impact Type Impact Analysis Index Market Factors Base (2024) 2019–2022 2023–2024 2025–2035 Growth Inhibiting Factor MACRO FACTORS Growth Promoting Factor High Initial Investment Costs Growth Steading Factor Increasing maritime trade activities Note: Rising demand for energy- ➢ The Impact indicated the measure of efficient marine engines influence on market growth Expansion and Modernization of ➢ Each Factor is graded based on historic Port Infrastructure impact and estimated influence on the market. Growth in offshore exploration and production MICRO FACTORS Research & Development Supply Chain Disruptions Source: MRFR Analysis Copyright © 2025 Market Research Future 40

4.2.1 INCREASING MARITIME TRADE ACTIVITIES The escalating maritime trade activities across North and Latin America are significantly propelling the demand for Marine Diesel, a critical fuel for shipping operations. This growth is fueled by substantial investments in port infrastructure, modernization projects, and strategic initiatives aimed at enhancing trade efficiency throughout both regions. In North America, the United States continues to be a pivotal player in maritime trade. For example, the Port of Long Beach handled over 8 million twenty-foot equivalent units (TEUs) in 2023, marking its fifth-busiest year on record. This increase is largely attributed to strategic developments such as the Pier B On-Dock Rail Support Facility, which improves cargo movement efficiency while reducing environmental impacts. Similarly, the Port of Brunswick in Georgia has established itself as the largest U.S. automobile port, managing 841,000 autos and trucks in 2024—a 13% increase compared to the previous year. This growth is supported by a $262 million investment aimed at expanding port capacity, including a new berth and an enlarged rail yard to accommodate the rising trade demand. Latin America is also witnessing a notable surge in maritime trade, driven by modernization efforts in countries like Brazil, Peru, and Ecuador. DP World's terminals in these regions reported record container handling in 2024. For instance, Brazil’s Port of Santos experienced a 14% increase, handling over 1.25 million TEUs, while Peru’s Port of Callao reached a record 1.96 million TEUs—the highest cargo volume ever managed by a port terminal in the country. Additionally, the Port of Chancay in Peru, a $3.6 billion project operated by Cosco Shipping, is poised to transform regional trade by accommodating larger vessels and significantly reducing transit times to Asia. This facility is expected to handle up to 3.5 million TEUs annually, substantially boosting trade efficiency in South America. The expansion and modernization of port facilities in both North and Latin America directly influence the rising demand for marine diesel. As ports increase their cargo throughput and accommodate larger vessels, the consumption of marine diesel for ship propulsion and auxiliary power correspondingly grows. This trend highlights the vital role of marine diesel in supporting maritime trade activities and underscores the importance of ongoing investments in fuel-efficient and environmentally sustainable shipping solutions. In summary, the growth of maritime trade in North and Latin America is a key driver behind the expanding marine diesel market. Infrastructure improvements and trade facilitation efforts strengthen this upward trajectory, while adaptive strategies are essential to overcome environmental challenges and meet the future fuel demands of the shipping industry. 4.2.2 TOP U.S. IMPORTS IN 2023, BASED ON U.S. IMPORT SHIPMENT AND MARITIME SHIPPING DATA. Top US Imports Imported Value ($) Active US Import Shipments Electrical machinery and equipment $463.36 billion 1.65 million shipments Nuclear reactors and machinery $459.19 billion 1.58 million shipments Vehicles $381.03 billion 1.32 million shipments Mineral fuels and oils $266.59 billion 1.01 million shipments Pharmaceutical products $177.84 billion 670 thousand shipments Commodities not elsewhere specified $124.97 billion 480 thousand shipments Copyright © 2025 Market Research Future 41 Optical, medical, or surgical $118.32 billion 450 thousand shipments instruments 8. Precious stones and metals $89.54 billion 340 thousand shipments Plastics and articles thereof $72.34 billion 270 thousand shipments Furniture, bedding, and mattresses $69 billion 230 thousand shipments 4.2.3 TOP U.S. EXPORT IN 2023, BASED ON U.S. IM PORT SHIPMENT AND MARITIME SHIPPING DATA. Top US Exports Exported Value ($) Active US Export Shipments Mineral fuels and oils $323.17 billion 1.25 million shipments Nuclear reactors, machinery $233 billion 620 thousand shipments Electrical machinery and equipment $200.65 billion 590 thousand shipments Vehicles $152.82 billion 430 thousand shipments Aircraft, spacecraft, and parts thereof $124.90 billion 280 thousand shipments Optical, medical, or surgical $105.10 billion 210 thousand shipments instruments Pharmaceutical products $90.30 billion 190 thousand shipments Plastics and articles thereof $77.79 billion 160 thousand shipments Precious stones and metals $76.67 billion 140 thousand shipments Commodities not elsewhere specified $67.35 billion 70 thousand shipments Copyright © 2025 Market Research Future 42 4.2.4 RISING DEMAND FOR E NERGY -EFFICIENT MARINE ENGINES The growing demand for energy-efficient marine engines is significantly influencing the Marine Diesel market in North and Latin America. This shift is driven by stringent environmental regulations, economic in

4.4.1 EXPANSION AND MODERNIZATION OF PORT INFRASTRUCTURE The expansion and modernization of port infrastructure in North and Latin America present significant opportunities for the Marine Diesel market. As ports upgrade to accommodate larger vessels and increased cargo volumes, the demand for marine diesel— essential for ship propulsion and auxiliary power—is poised to rise. In North America, substantial investments are being made to enhance port capabilities. The United States has allocated $17 billion through the Infrastructure Investment and Jobs Act (IIJA) to improve ports and inland waterways, supporting programs like the Port Infrastructure Development Program (PIDP). These upgrades aim to handle larger vessels and increase cargo throughput, thereby boosting marine diesel consumption. Latin America is also witnessing significant port developments. Mexico's expansion of the Port of Manzanillo aims to transform it into the busiest seaport in Latin America, with a future processing capacity of 10 million 20-foot containers. Similarly, Peru's Port of Chancay, a $3.6 billion project operated by Cosco Shipping, is set to become a major hub for trade between South America and Asia. These developments are expected to increase maritime traffic and, consequently, the demand for marine diesel. Furthermore, the expansion of the Panama Canal has had a profound impact on regional ports. The canal's expansion has enabled larger vessels to transit, prompting ports in the region to upgrade their facilities to accommodate these ships. This has led to increased cargo volumes and a subsequent rise in marine diesel usage. In summary, the ongoing expansion and modernization of port infrastructure in North and Latin America are driving factors for the growth of the marine diesel market. As ports enhance their capabilities to handle larger vessels and increase cargo volumes, the demand for marine diesel is expected to rise correspondingly. 4.4.2 GROWTH IN OFFSHORE EXPLORATION AND PRODUCTION The growth in offshore exploration and production activities in North and Latin America presents a significant opportunity for the Marine Diesel market. As offshore oil and gas operations expand, the demand for marine diesel —essential for powering offshore vessels and equipment—is poised to increase. In North America, particularly the Gulf of Mexico, advancements in deepwater drilling technologies are unlocking previously inaccessible oil reserves. For instance, Chevron's deployment of ultra-high-pressure equipment at the $5.7 billion Anchor project enables oil recovery from reservoirs located six miles beneath the water's surface. This technological breakthrough is expected to unlock over 2 billion barrels of oil, potentially increasing Chevron's Gulf of Mexico output by 50% to 300,000 barrels per day by 2026. Such developments necessitate increased use of marine diesel to power drilling rigs, support vessels, and other offshore infrastructure. The expansion of such deepwater projects necessitates increased use of marine diesel to power drilling rigs, support vessels, and other offshore infrastructure. As offshore exploration and production activities grow, the demand for marine diesel in North America is expected to rise correspondingly, presenting significant opportunities for the marine diesel market. In Latin America, countries like Brazil are leading offshore oil production. Brazil's average oil production in 2022 was 3.02 million barrels per day, with 97.6% produced offshore. The country's vast ultra-deep oil reserves require a fleet of offshore support vessels and drilling rigs, all of which rely heavily on marine diesel for operations. Similarly, Guyana is emerging as a significant offshore oil Copyright © 2025 Market Research Future 46 producer, with oil production expected to grow fivefold by 2030. This rapid expansion in offshore activities in Latin America is anticipated to drive substantial growth in the regional marine diesel market. Overall, the surge in offshore exploration and production in North and Latin America is set to bolster the marine diesel market. The increasing number of offshore projects, coupled with advancements in drilling technologies, will likely lead to higher consumption of marine diesel, underscoring its critical role in supporting the offshore oil and gas industry's growth. 4.5 IMPACT ANALYSIS OF TRUMP 2.0 The potential re-election of former U.S. President Donald Trump — often referred to as “Trump 2.0” — is poised to significantly influence the Marine Diesel market across North America and Latin America. Based on his administration’s prior energy and trade policies, a second Trump term would likely prioritize fossil fuel development, deregulation, and protectionist trade strategies. These policy shifts would reshape maritime fuel demand and regional energy trade dynamics across the Western Hemisphere. In the United States, the Trump administration is prioritizing fossil fuel development. Initiatives include expanding offshore drilling, streamlining permitting processes, and rolling back environmental regulations. These measures aim to boost domestic oil and gas production, potentially increasing the demand for marine diesel, particularly in offshore operations and maritime logistics. However, the administration's trade policies introduce complexities. The imposition of tariffs on Canadian and Mexican imports, including energy products, could disrupt established supply chains. Such disruptions may lead to increased costs for marine fuels and affect the competitiveness of U.S. maritime operations. A Trump 2.0 presidency would likely see a renewed rollback of environmental regulations affecting maritime and offshore operations. This could reduce compliance costs for shipping companies and fossil fuel operators, delaying the industry’s transition to lower-emission fuels and stricter carbon intensity standards under International Maritime Organizati

4.3.1 HIGH INITIAL INVESTMENT COSTS The Marine Diesel market in North and Latin America faces notable challenges, one of the most significant being the high initial investment costs associated with upgrading marine engines, retrofitting vessels, and modernizing fuel storage infrastructure. While regulatory bodies like the International Maritime Organization (IMO) are tightening environmental and emissions standards, compliance often demands costly engine upgrades and the integration of advanced fuel management systems. These expenses can be prohibitive for many operators, particularly small- and medium-sized shipping companies that dominate coastal, regional, and domestic maritime trade routes in both regions. In North America, maritime companies operating within the U.S. Marine Highway Program or servicing short-sea shipping routes are under pressure to invest in newer, more energy-efficient engines compatible with low-sulfur marine fuels like marine diesel. However, the upfront capital required for these conversions, coupled with the associated costs of regulatory certifications and operational downtime during retrofitting, discourages widespread adoption. According to a report by The Maritime Executive, many U.S.-based vessel owners have cited financial constraints as a primary reason for delaying fleet modernization projects, even amid rising regulatory requirements. Similarly, in Latin America, financial limitations are even more pronounced. The region’s shipping infrastructure is undergoing rapid development, with countries like Brazil, Chile, and Mexico investing heavily in port expansions and modernization. Yet, many domestic and regional shipping operators struggle to secure the necessary capital to upgrade their fleets with engines that meet new emission standards while being compatible with cleaner-burning marine diesel. The high costs of advanced marine engines and emission control systems, alongside limited access to financing options, hinder smaller operators from participating fully in the transition toward more energy-efficient, low-emission maritime operations. Additionally, the volatility in global fuel prices adds another layer of financial uncertainty. Marine Diesel remains a premium fuel option compared to alternatives like heavy fuel oil (HFO), making operational expenses significantly higher for vessels reliant on marine diesel. Combined with the capital-intensive nature of engine and equipment upgrades, this price differential discourages many shipowners from transitioning their fleets or expanding marine diesel usage. As such, high initial investment costs, coupled with market volatility and financing challenges, remain a considerable restraint on the growth of the marine diesel market in both North and Latin America. 4.3.2 STRINGENT ENVIRONMENTAL REGULATIONS Stringent environmental regulations are increasingly acting as a significant restraint on the Marine Diesel market in both North and Latin America. In recent years, global and regional regulatory bodies have introduced stricter emissions standards aimed at reducing greenhouse gas (GHG) and sulfur oxide (SOx) emissions from ships. The International Maritime Organization (IMO) has played a leading role in this, implementing its IMO 2020 regulation which caps sulfur content in marine fuels at 0.5%, down from 3.5%. While marine diesel typically has lower sulfur content than heavy fuel oil (HFO), compliance still requires operational adjustments, equipment upgrades, and sometimes blending with even lower-sulfur fuel options, all of which add to operational complexities and costs for ship operators. Copyright © 2025 Market Research Future 44 In North America, the situation is particularly challenging due to the presence of Emission Control Areas (ECAs) along the coasts of the United States and Canada, where sulfur limits are even more stringent at 0.1%. Vessels operating within these designated areas must either use very low sulfur marine diesel or adopt costly exhaust gas cleaning systems (scrubbers). These requirements have added financial and logistical burdens on shipowners, particularly those operating older fleets not originally designed for low- sulfur fuels. According to The Maritime Executive, several U.S.-based shipping companies have faced increased maintenance issues and fuel handling complications while adapting to these regulatory demands. In Latin America, regulatory pressure is also building, as countries in the region align with IMO’s global emissions reduction targets. Brazil, Mexico, and Chile have begun tightening maritime environmental regulations, particularly in major ports and coastal areas. However, the readiness of local fuel supply chains and port infrastructure to consistently provide compliant fuels like low-sulfur marine diesel remains a challenge. Additionally, enforcement inconsistencies across different jurisdictions create operational risks for shipping companies, which can face fines, delays, or detentions if found non-compliant. The lack of harmonized policies and infrastructure readiness complicates the transition to cleaner fuels, discouraging smaller regional operators from investing in marine diesel dependent engines. Moreover, as environmental expectations continue to escalate globally, the long-term role of fossil-based marine fuels, including marine diesel, is increasingly being questioned. The shipping sector is under growing pressure to transition toward alternative fuels such as biofuels, liquefied natural gas (LNG), methanol, and hydrogen. This looming shift adds a layer of market uncertainty for marine diesel suppliers and users alike, as investments in marine diesel compatible engines or infrastructure may face shorter operational lifespans amid tightening regulations. As such, while marine diesel remains critical for maritime operations in the near term, stringent environmental regulations and evolving policy landscapes in North and

Despite progress, the market faces notable challenges including the high cost of low-sulfur marine fuels, infrastructural limitations for fuel storage and distribution in Latin America, and technical hurdles in retrofitting older vessels to meet modern emission standards. The variability in regulatory enforcement across different Latin American countries also poses compliance and Copyright © 2025 Market Research Future 59 operational risks for international shipping lines. Moreover, ensuring the long-term stability, compatibility, and availability of blended and bio-based marine diesel fuels presents technical challenges, particularly under varying marine operating conditions such as extreme temperatures, long storage periods, and mixed-fuel engine systems.