• Shipping fuel prices have nearly doubled due to the Middle East war and Strait of Hormuz blockade, reaching "truly unprecedented" levels, according to IBIA.
• VLSFO prices have surged; Fujairah saw a doubling since February 27, and Singapore is up 106%. This impacts shipping costs globally.
• Shipping firms are adapting by slowing ships or finding alternative routes. The UN began talks March 18 to address the shipping crisis.

LONDON - Shipping fuel prices have reached “truly unprecedented” levels, having nearly doubled from the cargo crunch driven by the Middle East war, an industry leader told AFP on March 18.

The Iranian forces’ blockade of the crucial Strait of Hormuz after the war broke out on Feb 28 has severely restricted the supply of ship fuels to ports in the region, said Mr Constantinos Capetanakis, chairman of the International Bunker Industry Association (IBIA).

The average price of very low sulphur fuel oil (VLSFO) – used by many ships – across the world’s 20 largest refuelling ports was US$1,017 per tonne on March 18, up from US$544 per tonne on Feb 27, according to data from industry monitor Ship and Bunker.

“These are urgent situations and circumstances. You need to plan ahead as much as possible,” Mr Capetanakis told AFP, calling for “calmness and realism” from the shipping industry.

Prices for marine or “bunker” fuel are at their highest since the Russian invasion of Ukraine, researchers at HSBC bank said in a report.

The surge in bunker fuel is driving a broader increase in shipping costs, as carriers introduce emergency surcharges to offset the additional expenses, big companies have said.

Prices have more than doubled since Feb 27 at Fujairah port in the United Arab Emirates, which was attacked over the weekend and March 16, industry journal Ship and Bunker reported.

In Singapore, the world’s largest bunkering hub, VLSFO prices are up by 106 per cent.

“Ports in Europe and the Americas are more insulated for now, although we’re seeing some evidence of demand rising at hubs away from the Middle East,” Ship and Bunker financial editor Jack Jordan told AFP on March 18.

Bunker costs account for about 50 percent of a ship’s operating expenses, according to Mr Capetanakis, who is also the bunker director at global shipping company Star Bulk.

The IBIA is the global trade association for the marine fuel industry.

Shipping companies and freight firms chartering vessels are reportedly adapting to the high fuel prices by ordering ships to slow down to save on fuel, or finding alternative routes and ports to bunker.

The UN International Maritime Organization began two days of talks on March 18 to discuss efforts to ease the shipping crisis. AFP

https://www.straitstimes.com/business/ship-fuel-prices-soaring-in-war-industry-warns

SEE ALSO:

https://www.youtube.com/watch?v=R1gjS5yawWI

For weeks, the news has been talking about ships getting stuck, routes getting closed, tankers getting hit. And for weeks, most Europeans kept living their lives assuming that was someone else's problem. That ended this week. Because right now, in the middle of March this year, the backlog has hit European soil. And it's not just ships anymore it's factories, it's warehouses, it's the price of everyday goods. The question isn't whether this crisis reaches you anymore. The question is how bad it's going to get. Here's what actually happened. When the Strait of Hormuz became too dangerous to cross, shipping companies made a choice: go the long way. Around Africa. That adds weeks to every journey. At first, that just meant late deliveries. Annoying, but manageable. But then those late ships started arriving at the same time. One after another after another. And European ports Rotterdam, Hamburg, Antwerp they were never designed for that kind of chaos. So now you've got vessels sitting offshore for days, waiting for a spot to open up. Containers piling up on the docks because there's nowhere to put them. And here's where it gets real: German railway workers just went on strike.
So even the stuff that does get off the ships can't move inland. It's sitting there. Which means factories aren't getting parts. Warehouses aren't getting inventory. And that backlog? It's just getting started.

You want to know how a shipping crisis becomes a cost-of-living crisis? Talk to anyone who runs a business in Europe right now. They'll tell you the same thing: their suppliers are quoting new prices. Higher prices. And when they ask why, the answer is always the same shipping. Not politics. Not tariffs. Shipping. Because when it costs more to move goods, it costs more to buy goods.
And that math eventually lands on every single person watching this video. Freight rates are spiking. Not slowly overnight. Shipping lines like Hapag-Lloyd and CMA CGM have already filed new rates starting this month. We're talking about containers that cost €2,000 to move a few weeks ago now costing double that. Why? Because every ship taking the long way around Africa burns more fuel. Because insurance premiums have gone through the roof. Because the entire system is slower, riskier, and more expensive to run. And here's what that means on the ground: importers are paying more, so they're charging more. Wholesalers are paying more, so they're charging more.
By the time that container's contents hit a store shelf, the price has been marked up three or four times. You don't see the shipping bill. You just see the price tag. And that price tag is going up.

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THE CHOICE IS SIMPLE: PAY MORE OR GET A DOZEN WARSHIP PLUS TANKERS SUNK IN THE S-BEND OF HORMUZ...