Strait of Hormuz disruption pushes up fuel and container prices

It has been one month since the US and Israeli strikes on Iran began. Bunker fuel prices have soared since February 28, while container prices continue to rise.According to Ship & Bunker data, worldwide prices of both high sulfur fuel oil (HSFO) and very low sulfur fuel oil (VLSFO) have surged by around 64% compared to February 27th. T&E, an advocate for clean transport and energy, said 99% of the global fleet is running on fossil fuels. According to T&E, shipping companies are spending €340 million extra daily on bunker fuel since the conflict started, making €4.6 billion in total. Container rates rise furtherOngoing disruptions in the Strait of Hormuz, a key route for nearly 20% of global oil, have tightened bunker fuel availability and pushed prices higher, maritime data platform Drewry said in its weekly container market update. The Drewry World Container Index rose 5% this week, the fourth consecutive week of increases. Sharp increases were reported on the trade routes from Shanghai to Genoa (+12%) and Rotterdam to Shanghai (+10%). Drewry forecasts spot rates will increase further in the coming weeks on both the Asia–Europe trade and the Transpacific route.There is growing confusion about ships passing the Strait of Hormuz. A semi-official Iranian press agency stated that Trump lied about ten oil tankers being allowed to pass the strait as a ‘present’ to the US president, according to CNN. The agency also denies vessels under certain flags could pass. Two container ships operated by Chinese shipping company COSCO, attempting to pass the Strait of Hormuz, turned around today, Bloomberg reported. Meanwhile, Trump extended his pause on strikes against Iranian energy facilities by another ten days.