MANILA, Philippines — International Container Terminal Services Inc. (ICTSI), a leading global port operator, is proactively managing growing uncertainties in the global fuel supply chain as the conflict in the Middle East extends into its eighth week.
During the company's annual stockholders' meeting, ICTSI Chair and President Enrique Razon Jr. addressed concerns, stating that while diesel—a vital resource for port machinery, vessels, and transport—remains available for now, its price has skyrocketed.
"So far, there’s no disruption in diesel deliveries… it is available," Razon said. "However, the price is very high for diesel. We’re not sure if this will be the case going forward."
The price surge poses a direct operational and financial challenge for ICTSI, which manages 33 container terminals across 19 countries. Fuel is essential for powering the extensive cargo-handling equipment and logistics networks at its ports.
In response, Razon revealed the company is in continuous dialogue with government bodies, particularly in the Philippines, to secure stable fuel access. He acknowledged efforts by the Marcos administration to diversify crude oil and refined product imports, including sourcing from alternative markets like Russia, to mitigate supply risks.
Nevertheless, Razon highlighted a significant vulnerability for the region, noting that Asia remains heavily exposed to potential disruptions along critical maritime chokepoints like the Strait of Hormuz.
The financial impact is already being felt. To offset the rising costs, ICTSI has begun implementing adjustments to its tariffs and cargo-handling rates across its global network of terminals.