Freight Expert Warns Fuel Shortages Could Idle Up to 10% of Global Shipping Fleet

A senior freight executive at global commodities trader Mercuria has warned that potential fuel shortages could idle up to 10% of the global shipping fleet, raising concerns about disruptions to international trade.

According to Larry Johnson, Mercuria’s head of freight (as cited in industry reporting), marine fuel markets are extremely tight, leaving little buffer in supply chains. (Photo: Mercuria)

The shipping industry transports roughly 80% to 90% of global goods by volume, making it highly sensitive to fuel supply constraints and price volatility.

According to Larry Johnson, Mercuria’s head of freight (as cited in industry reporting), marine fuel markets are extremely tight, leaving little buffer in supply chains.

He warned that once available fuel stocks are depleted in key regions, shipping operations could face immediate disruption.

He added that refined marine fuels, such as very low-sulfur fuel oil used in major bunkering hubs like Singapore, are particularly vulnerable because they depend directly on crude oil refining capacity and cannot be quickly replenished.

Market conditions have been further strained by geopolitical disruptions affecting global oil flows, including reduced access to key transit routes and declining inventory buffers.

As fuel prices rise, shipping costs are also increasing, adding pressure to global supply chains already affected by inflation and geopolitical uncertainty.