Transport & Environment: The U.S.-Israel-Iran Conflict Is Driving Up Global Shipping Costs

　　Xinhua News Agency, Brussels, March 28 – The European Federation for Transport and Environment released a report on the 27th stating that the impact of the U.S.-Israel-Iraq conflict has significantly increased global shipping fuel costs, which has heightened operational pressures in the industry while also providing an opportunity to accelerate energy transition.

　　The report shows that since February 28, the global shipping industry has incurred additional fuel costs exceeding 4.6 billion euros. As the conflict continues, marine fuel prices have risen significantly. For example, at the Port of Singapore, the price of ultra-low sulfur fuel oil has risen to 941 euros per ton, an increase of 223% compared to the beginning of the year; liquefied natural gas prices have increased by 72% since early March.

　　The report pointed out that currently, approximately 99% of global ships still rely on fossil fuels for operation, making the shipping industry highly sensitive to energy price fluctuations and supply disruptions. Advancing ship electrification and improving operational efficiency can mitigate the impact of fuel price shocks to some extent.

　　Eloi Nord, the shipping policy director of the organization, stated that this round of shocks could become an important opportunity to drive energy transition in the industry. Previously, some governments and companies considered green shipping measures to be costly, but compared to the additional expenses caused by the current conflict, the cost pressure of such investments has significantly diminished.