{"id":4994,"date":"2026-05-12T14:32:14","date_gmt":"2026-05-12T14:32:14","guid":{"rendered":"https:\/\/siliconvalleymovingpost.com\/?p=4994"},"modified":"2026-05-12T14:32:14","modified_gmt":"2026-05-12T14:32:14","slug":"shipping-industry-fears-fuel-shortages-as-iran-war-squeezes-bunker-fuel-supply","status":"publish","type":"post","link":"https:\/\/siliconvalleymovingpost.com\/?p=4994","title":{"rendered":"Shipping industry fears fuel shortages as Iran war squeezes bunker fuel supply"},"content":{"rendered":"<div><p><strong>By ANTON L. DELGADO and CHAN HO-HIM<\/strong><\/p>\n<p>BANGKOK (AP) \u2014 Ship operators rely on a sludgelike substance known as bunker fuel to keep vessels running. The Iran war \u2018s closure of the Strait of Hormuz has choked off the supply of this fuel that powers the global maritime industry and its largest refueling hub in Asia.<\/p><p>Read more <a href=\"https:\/\/siliconvalleymovingpost.com\/?p=4988\">Federal prosecutors hand down indictments in deadly Baltimore bridge collapse<\/a><\/p>\n<p>Bunker fuel is a literal bottom of the barrel product: heavier and dirtier than the more expensive kinds of refined crude oil used by other vehicles like cars and airplanes, it sinks to the bottom of storage containers.<\/p>\n<p>But it helps move the 80% of globally traded goods that are transported by sea, and experts say that means a shortage of bunker fuel will translate to higher shipping costs, increase consumer prices and hurt the bottom lines of businesses worldwide.<\/p>\n<p>That will be an issue first in Asia, which relies heavily on Middle Eastern oil. In Singapore, the world\u2019s biggest refueling hub for bunker fuel, reserves are dwindling and prices are spiking.<\/p>\n<p>Shipping companies are trying to adapt to the energy shock, reducing vessel speeds and revising schedules to cut costs in the short term while making plans to acquire ships that can run on alternative fuels.<\/p>\n<p>But some companies won\u2019t survive this triage for long, according to Henning Gloystein of the Eurasia Group consultancy firm, who warned that the pain will spread beyond Asia through global supply chains.<\/p>\n<div><ul><div><div><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"A view of the Port of Singapore Authority's Pasir Panjang Terminal is pictured.\" class=\"wp-image-4990\" height=\"661\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d6863d8f85a96c9c12f256c12c6b992f-1024x661.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d6863d8f85a96c9c12f256c12c6b992f-1024x661.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d6863d8f85a96c9c12f256c12c6b992f-300x194.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d6863d8f85a96c9c12f256c12c6b992f-768x495.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d6863d8f85a96c9c12f256c12c6b992f-1536x991.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d6863d8f85a96c9c12f256c12c6b992f.webp 1860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>FILE \u2013 A view of the Port of Singapore Authority\u2019s Pasir Panjang Terminal is pictured on July 25, 2023. (AP Photo\/Anton L. Delgado, File)\n<\/div><\/div><\/li><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"A stacker organizes containers at the terminal of Indonesia Port Corporations.\" class=\"wp-image-4991\" height=\"683\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/87231ca19b0053f8aa9bd892ff47d3c9-1024x683.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/87231ca19b0053f8aa9bd892ff47d3c9-1024x683.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/87231ca19b0053f8aa9bd892ff47d3c9-300x200.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/87231ca19b0053f8aa9bd892ff47d3c9-768x512.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/87231ca19b0053f8aa9bd892ff47d3c9-1536x1024.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/87231ca19b0053f8aa9bd892ff47d3c9.webp 1860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>FILE \u2013 A stacker organizes containers at the terminal of Indonesia Port Corporations at the container Tanjung Priok Port in Jakarta, Indonesia, on Oct. 8, 2021. (AP Photo\/Tatan Syuflana, File)\n<\/div><\/div><\/li><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"A small boat splashes past a row of ship-to-shore cranes at Khlong Toei Pier.\" class=\"wp-image-4992\" height=\"700\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d0946b101debfb5b705a42aac7d53a23-1024x700.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d0946b101debfb5b705a42aac7d53a23-1024x700.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d0946b101debfb5b705a42aac7d53a23-300x205.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d0946b101debfb5b705a42aac7d53a23-768x525.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d0946b101debfb5b705a42aac7d53a23-1536x1050.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d0946b101debfb5b705a42aac7d53a23.webp 1860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>A small boat splashes past a row of ship-to-shore cranes at Khlong Toei Pier in Bangkok, Thailand on Jan 3, 2026. (AP Photo\/Anton L. Delgado)\n<\/div><\/div><\/li><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"Night lights from Khlong Toei Pier shimmer on the Chao Phraya River in Bangkok.\" class=\"wp-image-4993\" height=\"680\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/3e29a89452ab754ca500cd91adfa8f55-1024x680.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/3e29a89452ab754ca500cd91adfa8f55-1024x680.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/3e29a89452ab754ca500cd91adfa8f55-300x199.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/3e29a89452ab754ca500cd91adfa8f55-768x510.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/3e29a89452ab754ca500cd91adfa8f55-1536x1020.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/3e29a89452ab754ca500cd91adfa8f55.webp 1860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>Night lights from Khlong Toei Pier shimmer on the Chao Phraya River in Bangkok, Thailand on Jan. 3, 2026. (AP Photo\/Anton L. Delgado)\n<\/div><\/div><\/li><\/div><\/div><\/ul><div><div>FILE \u2013 A view of the Port of Singapore Authority\u2019s Pasir Panjang Terminal is pictured on July 25, 2023. (AP Photo\/Anton L. Delgado, File)\n<\/div><span>Expand<\/span><\/div><\/div>\n<h4>Southeast Asia turns to \u2018energy triage\u2019<\/h4>\n<p>Asia, which was hit first and hardest by the energy shock, has adopted various forms of \u201cenergy triage \u201d to cope, increasing its use of coal, buying more crude oil from Russia and reviving plans to develop nuclear power.<\/p> <div>\n<\/div>\n<p>But Asia is bracing for further impacts as energy reserves dwindle and government subsidies dry up.<\/p>\n<p>More than half of global seaborne trade moved through Asian ports in 2024, according to United Nations data, so what happens there will have global consequences.<\/p>\n<p>For now, Singapore\u2019s supplies of bunker fuel have held up even as the price races up.<\/p>\n<p>But the prolonged cutoff from major sources of the heavier crude oil needed for bunker fuel, like Iraq and Kuwait, will cause shortages, said Natalia Katona of the commodity site OilPrice.<\/p> <div>\n<\/div>\n<p>\u201cWe just see the price in Singapore going up, up, up,\u201d Katona said.<\/p>\n<p>Before the war, bunker fuel in Singapore cost about $450 per U.S. ton. That went up to more than $725 per U.S. ton as of early May.<\/p>\n<h4>Fuel shortages drive consumer costs<\/h4>\n<p>Shipping companies are absorbing the brunt of the costs for now, said June Goh, an oil analyst for market intelligence firm Sparta Commodities, but this may soon \u201cpass on to the customers.\u201d<\/p>\n<p>The daily cost of the Iran war for the global shipping industry is nearly $400 million, according to the European Federation for Transport and Environment.<\/p>\n<p>\u201cBunker fuel shortages tend to feed through to shipping costs more quickly than many other cost pressures,\u201d said Oliver Miloschewsky of risk consultancy firm Aon.<\/p><p>Read more <a href=\"https:\/\/siliconvalleymovingpost.com\/?p=4986\">When natural disasters strike, another crisis hits those recovering from opioid addiction<\/a><\/p>\n<p>Individual product impact may appear incremental but the cumulative effect of higher shipping costs \u201ccan ripple across supply chains and ultimately influence consumer prices across a broad range of sectors,\u201d he said.<\/p>\n<p>Singaporean consumers are also feeling the pinch in other ways as local ferries increase fares and luxury cruise liners tack on fuel surcharges.<\/p>\n<h4>Ship operators face limited options<\/h4>\n<p>Shippers have limited choices to deal with the situation, Miloschewsky said. They can pay more for fuel or implement fuel-saving measures like slowing shipping or suspending voyages.<\/p>\n<p>The average speed of bulk carriers and container ships has slowed globally by around 2% since the war began on Feb. 28, industry group Clarksons Research reported.<\/p>\n<p>High prices are also driving more interest in green fuels, said Ha\u030akan Agnevall of marine and energy technology manufacturer Wartsila.<\/p>\n<p>The good news is the technology to create lower-emitting fuels exists, he said. The bad news is production isn\u2019t yet at scale and greener fuels are often more expensive.<\/p>\n<p>Though U.S. President Donald Trump derailed efforts to shift global shipping away from fossil fuels in 2025, Agnevall said the current conflict could prompt strategically minded companies and countries to renew their push toward greener alternatives.<\/p>\n<p>Rising fossil fuel prices are narrowing the cost gap. \u201cThat improves the business case for green fuels,\u201d he said.<\/p>\n<p>The Caravel Group owns one of the world\u2019s largest ship management companies, Fleet Management Limited, which oversees more than 120 shipbuilding projects.<\/p>\n<p>About a third of ships that the company is managing the construction of will be \u201cdual fuel capable,\u201d meaning they can run on both conventional bunker fuel and alternatives such as liquefied natural gas, CEO Angad Banga told The Associated Press.<\/p>\n<p>Ship owners are willing to pay a premium to have vessels that can switch between fuels because \u201cin a volatile environment optionality has a measurable economic value,\u201d he said.<\/p>\n<p>Alternative fuels are not yet as flexible as conventional bunker fuel, Banga said. While there are more than 890 LNG-fueled vessels in operation globally, a lack of supporting infrastructure has created bottlenecks for them.<\/p>\n<p>But the industry is catching up and limits on bunker fuel are driving even more interest in LNG-capable ships, he said. \u201cThat progress is real.\u201d<\/p>\n<p><em>Chan reported from Hong Kong.<\/em><\/p>\n<p><em>The Associated Press\u2019 climate and environmental coverage receives financial support from multiple private foundations. The AP is solely responsible for all content. Find the AP\u2019s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.<\/em><\/p><p>Read more <a href=\"https:\/\/siliconvalleymovingpost.com\/?p=4984\">Rose Center Theater\u2019s tenant could stick around through Dec. 31 in new decision from Westminster council<\/a><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The global maritime industry is facing a looming shortage of bunker fuel that powers ships as the Iran war chokes off the Strait of Hormuz.<\/p>\n","protected":false},"author":1,"featured_media":4989,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,2],"tags":[],"class_list":["post-4994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-facts","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Shipping industry fears fuel shortages as Iran war squeezes bunker fuel supply - 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