ICTSI says fuel supply outlook uncertain amid war

International Container Terminal Services Inc. (ICTSI) said fuel supply remains stable for now, but warned that the outlook is increasingly uncertain as the war in the Middle East approached its eighth week.

At the company’s annual stockholders’ meeting on Thursday, ICTSI chair and president Enrique Razon Jr. said diesel—a critical input for port operations—remains available although at significantly higher prices.

“So far, there’s no disruption in diesel deliveries … it is available,” Razon said when asked about contingency plans should fuel supply tighten in the Philippines.

“However, the price is very high for diesel. We’re not sure if this will be the case going forward,” he added.

Soaring diesel prices pose a direct risk to ICTSI, which operates 33 container terminals across 19 countries. Fuel is a primary energy source for port operations, powering vessels, cargo-handling equipment and landside transport.

As such, Razon said the company has been “constantly” coordinating with governments and relevant agencies, particularly in the Philippines, to help ensure continued access to fuel.

He noted that the Marcos administration has so far mitigated supply risks by sourcing crude and refined products from alternative markets, including Russia.

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Still, Razon flagged Asia’s heavier exposure to potential disruptions along the Strait of Hormuz.

Rising fuel costs have already begun feeding through ICTSI’s operations.

Razon said the company has implemented adjustments to tariffs and handling rates across its terminals.