Conflict in Gulf Triggers Surge in Shipping Industry Costs

Beijing (ANTARA) - Tensions around the Strait of Hormuz are causing a rise in costs across the global shipping industry, with companies now facing additional daily fuel expenses of 340 million euros (1 euro = Rp19,528), according to Transport and Environment, as reported by Xinhua.

Maritime fuel prices have surged sharply, the report states, with the price of very low sulphur fuel oil (VLSFO) in Singapore climbing to 941 euros per tonne, a 223 percent increase since the beginning of 2026. The price of liquefied natural gas (LNG) has also risen by 72 percent since early March, further adding to operational cost burdens for shipowners.

Shipping companies have borne additional fuel costs of more than 4.6 billion euros since 28 February, when the United States (US) and Israel launched a massive attack on Iran, the group stated in a report.

The report also notes that with 99 percent of the global fleet still using fossil fuels, the shipping industry is “directly exposed” to fuel price fluctuations and supply disruptions.

“The chaos in the Strait of Hormuz has put global maritime trade in the spotlight, but the oil market feels the impact first,” said Eloi Norde, shipping policy officer at the organisation. “This war is costing the industry millions every day.”

He said the current crisis has the potential to accelerate investment in cleaner energy solutions, and previous concerns about the high costs of green shipping now seem less significant compared to the scale of disruption the industry is facing.

The report also outlines several potential measures to reduce exposure to fuel price shocks.

Electrification of short-sea vessels, such as ferries and coastal cargo ships, is seen as a short-term opportunity, and operational measures, including slow steaming and wind-assisted propulsion, can significantly improve fuel efficiency for long-haul voyages, the report states.