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The shipping industry’s transition towards sustainable fuels will not drive consumer prices punishingly high for most goods, according to a study by PwC
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The report, The economics of sustainable shipping – Costs, saving, and consumer impact, concluded that overall “the barriers to switching fuels may be less imposing than business leaders might think—and in some instances, they would be negligible”
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PwC Germany modelled the impact of the costs on consumer prices, based on 2030 forecasts for fuel costs
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It compared 100% heavy fuel oil with 100% green fuel
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It must be noted that the report was released on February 27, 2026, a day before the U.S. and Israel attacked Iran, triggering serious disruption in global oil supply and prices
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The shift to sustainable shipping fuels would add little to the prices of certain goods because the incremental costs are low relative to the number and value of items shipped
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At-scale adoption of low-carbon shipping fuels requires a coordinated effort by the entire industry ecosystem to provide infrastructure and fuels
The shipping industry’s transition towards sustainable fuels will not drive consumer prices punishingly high for most goods, according to a recent study by international professional services company PwC.
The report, The economics of sustainable shipping – Costs, saving, and consumer impact, concluded that overall, “the barriers to switching fuels may be less imposing than business leaders might think—and in some instances, they would be negligible.”
Factoring in the higher costs of green fuel such as bio-methanol compared with conventional marine fuels, even after fees for carbon emissions are accounted for, along with the investments for vessels with dual-fuel methanol engines, the report found that the impact varied among different products and services but not at punitive levels.
PwC Germany modelled the impact of the costs on consumer prices, based on 2030 forecasts for fuel costs.
It compared 100% heavy fuel oil, or HFO, with 100% green fuel, based on an average of bio-methanol and e-methanol prices and the International Maritime Organization’s (IMO) currently proposed CO₂ emissions fees.
It must be noted that the report was released on February 27, 2026, a day before the U.S. and Israel attacked Iran, which has now escalated into a region-wide conflict with energy-producing Gulf countries getting hit and the key waterway Strait of Hormuz blockaded by Iran, pushing global oil prices at their highest since the Covid pandemic.
“The shift to sustainable shipping fuels would add little to the unit prices of certain goods because the incremental costs are low relative to the number and value of items shipped,” according to the report undertaken by PwC Germany and the University of Technology Sydney’s Institute for Sustainable Futures.
READ: Shipping industry prepares for huge investments in decarbonization
Prices of high-value consumer products would rise only marginally if shipped on vessels running on sustainable fuels – such as television, by 1.4% and sneakers by 0.3%; solar panel prices, however, would increase by 4.6%.
For automobiles shipped on a 100% green-fueled pure car and truck carrier: Mid-priced vehicles will cost an extra 0.8% while luxury cars would have an added 0.1% to the sale price.
Commodities such as wheat would rise by 2.3% while iron ore would have a 4.9% increase.
Leisure cruises, on the other hand, would see a 19% increase in ticket prices for trips using 100% green fuels.
“The per-ticket increase is higher than the per-item increase for most shipped goods because there are fewer passengers on a cruise ship than goods on a cargo vessel. Still, for leisure cruises, the additional cost of green fuels could be distributed among cabin classes in a way that matches different passengers’ willingness to pay,” the PwC report said.
This means manufacturers and other businesses can choose to have their products moved through sustainable shipping without worrying about having to pass on too high a cost to end-users.
“Demand from shipping customers would, in turn, create a strong pull for the shipping industry to adopt sustainable fuels,” the report said.
The cargo shipping industry, nonetheless, is moving towards sustainable fuels and technologies in the face of global, regional and even national policies that push for low to zero-carbon emissions.
The IMO’s Global Fuel Standard, for one, would mandate annual reductions in greenhouse gas intensity, such that ships running entirely on heavy fuel oil could eventually pay US$380 per tonne of CO2 equivalent emitted. As such, fuel costs would effectively increase 30% in 2030 and nearly double in 2035.
READ: Shipping forges on with decarbonization even without approved net zero framework
In the European Union, regulatory requirements oblige financial institutions to support the shipping sector’s transition with consideration given to operators that have a credible decarbonisation program, robust data, and effective management of the EU Emissions Trading System and FuelEU Maritime exposure.
READ: Ocean and air freight markets to track different routes in 2026
“The opportunity for shipping companies to make progress is considerable,” the report’s authors wrote.
“The global commercial fleet transports 80% of global trade, but 95% of vessels still burn conventional fuel. Some larger shipping companies are already pressing ahead… They’re also shaping the future, engaging in the development of so-called green shipping corridors,” they noted.
At the same time, a wide-scale adoption of low-carbon shipping fuels would require a coordinated effort among the entire shipping ecosystem to provide infrastructure and fuels along with companies that depend on sea transport to move their goods.
The report’s authors are: Socrates Leptos-Bourgi, International Shipping & Ports Leader, a partner with PwC Greece; Dirk Niemeier, Clean Hydrogen, CCUS, and Sustainable Fuels lead, a director with PwC Strategy& Germany; Maartje Feenstra, works at the University of Technology Sydney as a research principal at the Institute for Sustainable Futures; and Sven Teske professor at the University of Technology Sydney, leads the One Earth Climate Model research project at the Institute for Sustainable Futures.
