The massive ships that glide through the ports of Los Angeles and Long Beach are facing extreme fuel costs as oil prices rise, often paying millions of dollars more to top off their titanic tanks.
The cost of filling up with shipping fuel in L.A. County is close to 20% higher than at other major ports in the U.S. and worldwide. The rates at the ports in Los Angeles and Long Beach also have risen by more than at other ports since the war in Iran began.
With some ships requiring the equivalent of millions of gallons of fuel after they drop off and pick up cargo, the extra costs add up. Shipping companies are taking steps to reduce fuel consumption and avoid expensive routes, but much of that extra cost eventually will show up in the prices of the many products transported in the hundreds of thousands of containers that pass through the ports every month.
“If someone asks you to ship something, you’re still going to do it, you’re just going to quote them a higher price,” said Mike Jacob, president of the Pacific Merchant Shipping Assn. “Higher supply chain costs ultimately have to be paid by somebody.”
The price of gas for automobiles has jumped more than 50%, making everyone’s commute more costly. Truckers are struggling with sky-high diesel prices and higher aviation fuel prices have lifted airfares and even led to the closure of Spirit Airlines.
Higher shipping fuel costs also are expected to continue contributing to inflation, even if there were an immediate resolution to the conflict with Iran.
The closure of the Strait of Hormuz since late February has blocked a large portion of the global oil supply from flowing freely, and uncertainty surrounding the conflict has kept oil prices volatile. A fragile ceasefire continues despite violence in the Strait in recent days.
Even if there were an immediate end to the Iran war, higher shipping fuel costs are expected to continue contributing to inflation. Above, an oil pumpjack in Santa Fe Springs on May 4, 2026.
(Kyle Grillot / Bloomberg )
As with other types of fuel in the state, taxes, fees and environmental restrictions can add to the cost of fuel for ships. California also gets squeezed more than other states by supply disruptions because it relies on oil delivered from other states and countries.
Less than a week ago, the last oil tanker to pass through the Strait of Hormuz before war broke out arrived at the Port of Long Beach and delivered 2 million barrels of crude oil to the Marathon Petroleum terminal. With no more ships arriving from the Persian Gulf, California will miss out on an average of 200,000 barrels of oil per day from that area.
California relies on the Middle East for 30% of its crude oil, said Port of Los Angeles Executive Director Gene Seroka, including oil that passes through the Strait of Hormuz.
“They’re evaluating all possibilities, including trying to be more fuel efficient and raising prices,” he said of major shippers,” Seroka said. “They may pass the costs to the American importer and exporter and ultimately to their customers, whether it be American consumers, factories or others who buy and sell these products.”
For container ships, fuel now costs about 25% of the total price of a voyage from Asia to Los Angeles, Seroka said.
Data show that fuel used by ships is more expensive in California, as is gasoline and jet fuel. The average price of very low-sulfur fuel oil has risen 70% to $925 per metric ton at the world’s top ports since the war started. The price at the Long Beach and Los Angeles ports has jumped almost 88% to $1,080.
“Fuel is our No. 1 expense for operating a ship,” Jacob said. “There are some things we can do to mitigate it, but those fuel prices end up being reflected in the rates.”
When fuel is expensive, cargo ships often run slower to burn it more efficiently, he said. And major shipping companies already have implemented fuel surcharges to cover higher costs.
For container ships, fuel now costs about 25% of the total price of a voyage from Asia to Los Angeles, Port of L.A. Executive Director Gene Seroka said. Above, a portion of the port May 5, 2026.
(William Liang / For The Times)
Amazon announced a 3.5% fuel and logistics surcharge last month and the U.S. Postal Service is charging an 8% fee on certain packages, its first fuel surcharge ever. Hapag-Lloyd, a German marine shipping company, reported that its fuel costs have gone up by $50 million a week.
Maersk, a shipping company based in Denmark, implemented an emergency bunker surcharge in late March, citing a challenging fuel market.
“We have undertaken significant redistribution of fuels to offset shortages in the Middle East, and are securing alternative sources from different locations and suppliers,” the company said.
The extra charges won’t cover the sustained higher costs immediately, so shipping companies say their profits will be hit. Matson, a shipping company with offices in Concord, Calif., addressed the spike in fuel prices in its investor call earlier this week. The company specializes in shipping to Hawaii and is a member of the Pacific Merchant Shipping Assn.
“We expect fuel price volatility to impact our near-term earnings due to a timing lag between when we incur fuel costs and when we can fully recover these costs through our fuel surcharge,” Matson Chief Executive Matt Cox said on Monday’s call.
Despite the increased costs, activity has not drastically slowed at the ports of Los Angeles and Long Beach, which together handle more than $600 billion in cargo per year. The Port of Long Beach handled 774,935 containers in March, up more than 6,000 from February. Activity at the Port of Los Angeles was down 3% year over year in March.
A driver checks out his cargo container at the Port of Los Angeles in Wilmington on March 4, 2026.
(Genaro Molina / Los Angeles Times)
Operations at the Port of Long Beach aren’t totally spared from the impacts of the global oil shortage, however, Chief Executive Noel Hacegaba said.
“Fuel supplies are tightening and congestion is up at fueling hubs,” Hacegaba said. “Shippers are adjusting how they move cargo to manage costs and avoid congestion.”
