Green measures would reduce the shipping industry’s exposure to fuel price shocks in future, says T&E
• €4.6 billion in additional fuel costs since the start of the conflict
• The cost gap between fossil fuels and e-fuels has narrowed.
• Efficiency measures, like wind propulsion, slow steaming or electrification, will further protect the industry from future shocks .
Shipping companies are spending an extra €340 million a day in additional fuel costs as a result of the latest conflict in the Gulf, new T&E analysis shows. As 99% of the global fleet runs on fossil fuels, the industry is directly exposed to fuel price volatility and supply disruptions. Efficiency measures, electrification and e-fuels would reduce the industry’s exposure to price fluctuations, says T&E.
Marine fuel prices are escalating rapidly, with VLSFO reaching €941 per tonne in Singapore, up 223% since the start of 2026. At the same time, LNG prices have risen by 72% since early March. Since February 28, shipping companies have incurred more than €4.6 billion in additional fuel costs.
This makes alternative fuels increasingly more competitive. As fossil fuel prices reach record highs again, the cost gap with e-fuels is narrowing. T&E’s research shows that the cost gap between marine gas oil - one of the more expensive fossil fuels - and e-fuels has shrunk to near parity (+5%) in some ports [1]. While the trend may be temporary, it shows that the volatility of fossil fuel markets offsets much of the structural cost disadvantage of clean fuels.
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