Iran Conflict Costs Shipping €340M Daily
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- T&E analysis finds shipping companies are spending €340 million daily in extra fuel costs since the conflict began on February 28, with cumulative costs exceeding €4.6 billion
- VLSFO prices in Singapore hit €941 per tonne, up 223% since the start of 2026, while LNG prices have risen 72% since early March
- 99% of the global shipping fleet runs on fossil fuels, leaving the industry directly exposed to fuel price volatility and supply disruptions
- The cost gap between marine gas oil and e-fuels has shrunk to near parity (+5%) in ports including Rotterdam, Fujairah, Houston, and Singapore, per T&E
- T&E's Eloi Nordé argues the crisis should catalyze investment in European e-fuels and energy efficiency, saying green measures 'pale in comparison to this super-disruption'
- Wind-assist technologies can cut fuel consumption for ocean-going vessels by up to 18%, and 20% of EU ferries could already be electrified at lower cost than fossil equivalents, according to T&E
- T&E calls on European policymakers to support domestic e-fuels production and strengthen targets in FuelEU Maritime to reduce exposure to geopolitically exposed fuel routes
Why it matters: T&E's €4.6 billion cumulative cost figure makes the fiscal case for green shipping concrete: with e-fuels now at near-parity with marine gas oil in some ports and 20% of EU ferries already electrifiable at lower cost than fossil equivalents, EU policymakers and shipowners face a direct economic argument to accelerate FuelEU Maritime targets and domestic e-fuels investment rather than continue absorbing fossil fuel volatility.
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