Shipping industry spends €340 million per day on fuel due to Iran war

April 2 ------ According to Transport & Environment (T&E), the industry is spending an additional €340 million per day on fuel, with total extra costs exceeding €4.6 billion since late February, due to the latest conflict in the Gulf.

As informed, this spike is being driven by disruptions in global oil supply routes and heightened geopolitical risk. Marine fuel prices have risen sharply: very low sulphur fuel oil (VLSFO) in Singapore has reached €941 per ton, up 223% since the start of 2026, while LNG prices have increased by 72% since early March.

Because about 99% of the global shipping fleet still runs on fossil fuels, the sector is highly exposed to these price swings and supply shocks. T&E argues that this volatility strengthens the case for alternative fuels and efficiency measures. As fossil fuel prices rise, the cost gap with e-fuels is narrowing, with some ports seeing near parity between marine gas oil and e-fuels (+5%).

They also highlight that electrifying short-sea ferries, using wind-assisted propulsion, and adopting efficiency measures like slow steaming could significantly cut fuel use and reduce exposure to future shocks.

Overall, T&E calls for faster investment in European e-fuels and stronger EU policy support under frameworks like FuelEU Maritime, arguing that cleaner technologies would improve both energy security and long-term cost stability for the shipping sector. "Some governments and parts of the industry have spent the last year bashing green maritime measures as being too expensive, yet those costs pale in comparison to this super-disruption. If anything, this crisis should be the catalyst for more investment in European e-fuels and greater uptake of energy efficiency measures to avoid fossil fuel shocks in the future," said Eloi Nordé, shipping policy officer at T&E.

Source: safety4sea.com