Hormuz Crisis Costs Shipping €340M a Day
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- The Strait of Hormuz crisis is costing the shipping industry €340 million per day, demonstrating the sector's vulnerability to oil and gas price volatility, according to T&E.
- T&E argues that electrification, efficiency measures, and broader green measures would reduce shipping's future exposure to fuel price shocks and geopolitical disruptions.
- T&E calls for accelerating the deployment of green e-fuels in shipping, arguing only e-fuels can be scaled sustainably in Europe and would strengthen continental sovereignty and resilience.
- T&E recommends maintaining and strengthening the EU Emission Trading System (ETS) for shipping to internalize greenhouse gas costs and shift investment away from fossil fuels.
- T&E suggests that a share of ETS revenues should be directed toward supporting e-fuels production within the EU.
Why it matters: At €340 million per day, the Hormuz crisis quantifies exactly how exposed shipping remains to fossil fuel price volatility, and T&E's roadmap makes the structural case that electrification, green e-fuels, and a reinforced EU ETS are the hedges European policymakers should underwrite now to prevent the next geopolitical shock from hitting the industry as hard.
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