BANGKOK — Ship operators are facing the risk of severe fuel shortages after the war in Iran closed the Strait of Hormuz, disrupting supplies of bunker oil — a thick, sludge-like fuel that is vital to the global maritime industry.
Bunker oil, a residue product from crude oil refining, is used by cargo ships, container vessels, and tankers to power their engines. Singapore, the world's largest refueling hub, is being hit hardest as supply from the Middle East has been cut off. Industry experts say this could lead to widespread fuel scarcity, driving up shipping costs and goods prices.
The Strait of Hormuz is a strategic sea lane through which about 20% of the world's crude oil and refined fuels are transported. The Iran conflict's paralysis of this route has directly impacted the fuel supply chain for ships, which rely heavily on refineries in the region. Shipping companies are now seeking alternative supplies from other areas, but the cost per refueling could rise significantly.
The situation poses a major challenge for the entire global logistics sector, which has been grappling with high fuel prices and geopolitical volatility. If the disruption persists, shipping lines may be forced to adjust schedules or reduce vessel speeds to conserve fuel, causing delays in global goods supply chains.
