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

According to a report released by the European Federation of transport and environment on March 27, the global shipping industry is facing huge pressure on fuel costs due to the war between the United States, Iraq and Iraq. Since February 28, the industry's cumulative additional fuel costs have exceeded 4.6 billion euros, with ultra-low-sulfur fuel oil and liquefied natural gas prices rising sharply by 223 and 72 percent, respectively. About 99% of the world's ships still rely on fossil fuels, making the industry extremely sensitive to energy price fluctuations. The agency believes that the crisis has exposed the vulnerability of traditional shipping models, but also provides an important opportunity for the energy transition. By promoting ship electrification and improving operational efficiency, price shocks can be mitigated. Eloy Nord, head of shipping policy, stressed that the economic pressure on green shipping measures, which were previously considered costly, has been relatively reduced in contrast to the huge additional spending caused by the current conflict, which may prompt governments and companies to invest more actively in sustainable shipping solutions.