ports

Evergreen Prepares for Higher Fuel Costs as Middle East Tensions Persist

Evergreen Marine Corporation warned shareholders that second-quarter fuel expenses will exceed first-quarter levels as the Strait of Hormuz closure keeps crude prices elevated. The Taiwanese container carrier has locked in term bunker supply agreements across major ports to stabilize costs through the fourth quarter, when Middle East tensions are expected to continue. Oil prices have climbed roughly 50 percent since the start of 2026, reaching $88 per barrel from a $79 average in Q1. Evergreen paid approximately $422 per tonne for fuel in the opening quarter, well below the $454 projected for Q4. The carrier incorporated fuel surcharges into annual transpacific and Asia-Europe service contracts to offset increased expenses. Management remained cautious about peak season timing, noting the Red Sea route faces prolonged disruption with balanced supply-demand dynamics ahead.