403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Hormuz Crisis Pushes Up Shipping Fuel Costs
(MENAFN) Escalating tensions around the Strait of Hormuz are inflicting severe financial damage on global shipping, with carriers absorbing an additional 340 million euros ($393 million) in daily fuel expenditures, according to Transport & Environment, a European clean transport advocacy group, which released its findings Friday.
Since the United States and Israel launched large-scale strikes on Iran beginning February 28, shipping firms have collectively absorbed more than 4.6 billion euros in excess fuel costs, the group's report revealed.
Marine fuel markets have been rattled by the conflict. Very low sulphur fuel oil has surged to 941 euros per ton in Singapore — a staggering 223 percent spike since the start of 2026. Liquefied natural gas prices have climbed 72 percent since early March alone, compounding the financial strain on vessel operators worldwide.
The report underscores the industry's acute vulnerability, noting that 99 percent of the global fleet remains dependent on fossil fuels, leaving it "directly exposed" to fuel price volatility and supply disruptions.
Eloi Norde, the organization's shipping policy officer, warned of deepening consequences.
"Chaos in the Strait of Hormuz is putting global maritime trade under the spotlight, but its most immediate impact is on oil markets," said Norde. "The war is costing the industry millions every day."
Norde added that the crisis may paradoxically fast-track the transition to greener alternatives, suggesting that earlier reservations about the steep costs of clean shipping now appear negligible against the scale of disruption battering the sector.
The report also charts potential routes to insulate the industry from future fuel shocks — identifying electrification of short-haul vessels such as ferries and coastal cargo ships as an immediate opportunity, while flagging operational strategies including slow steaming and wind-assisted propulsion as viable efficiency levers for long-distance routes.
Since the United States and Israel launched large-scale strikes on Iran beginning February 28, shipping firms have collectively absorbed more than 4.6 billion euros in excess fuel costs, the group's report revealed.
Marine fuel markets have been rattled by the conflict. Very low sulphur fuel oil has surged to 941 euros per ton in Singapore — a staggering 223 percent spike since the start of 2026. Liquefied natural gas prices have climbed 72 percent since early March alone, compounding the financial strain on vessel operators worldwide.
The report underscores the industry's acute vulnerability, noting that 99 percent of the global fleet remains dependent on fossil fuels, leaving it "directly exposed" to fuel price volatility and supply disruptions.
Eloi Norde, the organization's shipping policy officer, warned of deepening consequences.
"Chaos in the Strait of Hormuz is putting global maritime trade under the spotlight, but its most immediate impact is on oil markets," said Norde. "The war is costing the industry millions every day."
Norde added that the crisis may paradoxically fast-track the transition to greener alternatives, suggesting that earlier reservations about the steep costs of clean shipping now appear negligible against the scale of disruption battering the sector.
The report also charts potential routes to insulate the industry from future fuel shocks — identifying electrification of short-haul vessels such as ferries and coastal cargo ships as an immediate opportunity, while flagging operational strategies including slow steaming and wind-assisted propulsion as viable efficiency levers for long-distance routes.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
Comments
No comment