Fuel prices for ships have increased very fast because of the ongoing crisis in the Middle East, industry experts say.
The problem started after Iranian forces blocked the Strait of Hormuz, an important route for global oil supply, following the outbreak of war on February 28.
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This has reduced the supply of fuel to many ports in the region.
According to the International Bunker Industry Association, the situation is very serious. Its chairman, Constantinos Capetanakis, said companies need to stay calm and plan ahead.
The price of a common ship fuel, known as VLSFO, has risen from $544 per tonne on February 27 to about $1,017 per tonne. This means the price has almost doubled in a short time.
Experts at HSBC say fuel prices are now at their highest level since the Russian invasion of Ukraine.
Because of the high fuel costs, shipping companies are now spending more money. Many of them have added extra charges to customers to cover the cost.
In places like Fujairah in the United Arab Emirates, fuel prices have more than doubled. In Singapore, the world’s biggest refuelling centre, prices have increased by over 100 percent.
Experts say ports in Europe and the Americas are less affected for now, but demand is increasing there as companies look for alternatives.
Fuel makes up about half of the total cost of running a ship. To manage the situation, some shipping companies are slowing down their ships to save fuel, while others are choosing different routes and ports.
The International Maritime Organization has started emergency talks to find ways to reduce the crisis.
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