An AP report says the closure of the Strait of Hormuz amid the Iran war has disrupted global supplies of bunker fuel, causing headaches to shipping operators.\u00a0<\/p>\n
According to the Associated Press (AP), the disruption is being felt first in Asia, especially Singapore, the world\u2019s largest marine refueling hub, where inventories are tightening and prices have jumped from about $500 per metric ton before the conflict to more than $800 in early May.<\/p>\n
Henning Gloystein, analyst at the Eurasia Group consultancy firm, told AP that the the shortage could lift shipping costs and eventually feed into higher consumer prices, with some companies under severe strain if conditions persist.<\/p>\n
Natalia Katona, analyst at OilPrice, explained to AP that the cutoff of heavier crude from Iraq and Kuwait is pushing Singapore prices \u201cup, up, up.\u201d June Goh, oil analyst at Sparta Commodities, said shipping firms are absorbing costs for now but will likely pass them on. Meanwhile, Oliver Miloschewsky, Head of Shipping, Asia, at Aon, explained that bunker fuel shortages tend to transmit quickly into freight rates and wider supply chain costs.<\/p>\n
Clarksons Research reported that the average speed of bulk carriers and container ships has fallen by about 2% since Feb. 28 as operators reduce fuel use by slowing voyages and adjusting schedules. In addition, Transport and Environment has estimated the crisis is costing the global shipping industry about 340 million euros ($400 million) per day.<\/a><\/p>\n