The shipping industry faces an extra EUR340 million daily in fuel costs due to the Iran war, totaling over EUR4.6 billion since February.
The global shipping industry is spending an extra EUR340 million (US$390 million) per day on fuel due to the war in Iran, with cumulative costs surpassing EUR4.6 billion since late February, reports Athens' Safety4Sea.
Transport & Environment (T&E) is a Brussels-based NGO that leads European advocacy for clean transport and energy, working to decarbonise cars, trucks, planes, ships, and the fuels that power them.
T&E stated that the surge in costs stems from disrupted oil supply routes and rising geopolitical risk. Marine fuel prices have spiked, with very low sulphur fuel oil in Singapore hitting EUR941 per tonne, a 223 per cent increase since January. LNG prices have climbed 72 per cent since early March.
With about 99 per cent of the global fleet reliant on fossil fuels, shipping remains highly vulnerable to price swings. T&E noted the narrowing cost gap between conventional fuels and e-fuels, with some ports showing near parity between marine gas oil and e-fuels.
The group urged investment in alternatives such as electrified short-sea ferries, wind-assisted propulsion, and efficiency measures like slow steaming. These steps could cut fuel use and shield operators from future shocks.
T&E called for stronger EU backing under FuelEU Maritime and faster adoption of European e-fuels. It argued that cleaner technologies would bolster energy security and stabilise long-term costs, contrasting with industry claims that green measures are too expensive.
