Industry stress
Shipping and marine
Hormuz route watch; VLSFO premium elevated at $140/MT
editorial · as of 1 Apr 2026
Operator read
Shipping: Hormuz watch; bunker premium holding above $140.
Marine bunker cost is the primary operating expense for vessel operators; inland tug and coastal shipping also depend on diesel.
Stress level: Watch. Check feedstocks and drivers below.
Feedstock costs
Stress drivers
- Bunker fuel price above $500/MT
- IMO 2020 VLSFO premium over HSFO above $150/MT
- Hormuz and Red Sea route diversions adding voyage days
- Cabotage law limiting coastal shipping margins
- Port congestion at JNPA and Mundra
Why it matters
India's merchant fleet and coastal shipping sector runs on heavy fuel oil and diesel. IMO 2020 VLSFO requirements raised bunker costs and created a two-tier marine fuel market. Hormuz and Red Sea route diversions in 2024-25 added 8-12 voyage days on India-Europe trade lanes, compounding freight rate pressure. Cabotage laws protect domestic shipping but limit efficiency gains from foreign tonnage.
Source