Oil Tanker Rates Hit Record Highs as Middle East Shipping Risks Soar
Longer reroutes and war-risk delays are tightening vessel supply, with Middle East-to-China VLCC earnings near $800,000 a day, Bloomberg data show.
- Global tanker freight rates are surging to record highs as escalating Middle East shipping risks force traders into inefficient and expensive alternative routes.
- Shipping through the Strait of Hormuz remains risky amid the tanker war in the Persian Gulf involving Iran, while escalating tensions near Oman create severe supply chain bottlenecks.
- The benchmark daily rate for a VLCC from the Middle East to China has hit almost $800,000, while shipbroker Fearnleys expects the WS 400 mark may be breached soon due to tight vessel positions.
- Charterers face a record $29.5 million lump-sum fee to ship crude from the Gulf Coast to Asia, nearly $15 per barrel, excluding additional war risk premiums and delay costs.
- "The market is quite stressed," said Alex Grant, Equinor's global head of crude, products and liquids trading, at the APPEC conference, as Saudi Arabia shifts cargoes through the Red Sea to bypass regional conflicts.
13 Articles
13 Articles
Shipping stocks are showing strength on the 11th as sea freight rates rise due to escalating conflicts originating from the Middle East. As of 9:16 AM on the 11th, STX Green Logistics is trading at 3,715 won on the KOSPI market, up 160 won (4.5%) from the previous trading day. At the same time, Heung-A Shipping (4.52%) is also showing strength. Conflict surrounding the Strait of Hormuz persists as the retaliatory war between the U.S. and Iran co…
The Daily Caller
Price Tag For Oil Tanker Shipments Soars To Record High As War Grips Middle East
The cost of moving oil around the world is exploding as the Iran war forces tankers onto longer routes.
Price tag for oil tanker shipments soars to record high as war grips Middle East - The Daily Bo Snerdley
The cost of moving oil around the world is exploding as the Iran War forces tankers onto longer routes and strains the ships still willing to operate near some of the world’s most important energy chokepoints. Earnings for supertankers traveling from the Middle East to China reached a record $759,969 per day in September, while the cost of shipping crude from the U.S. Gulf Coast to China hit a record $29.5 million per voyage on Sept. 4, accordin…
Surging Tanker Rates Signal a Deepening Global Energy Crisis
Oil Tanker Rates Hit Record Highs as Middle East Shipping Risks Soar
Oil tanker rates have jumped to record highs as escalating risks to shipping in and out of the Middle East are prompting traders and tanker operators to undertake inefficient and more expensive trade routes. While the crude oil supply is actually there, shipping it through the Strait of Hormuz remains a very risky endeavor, especially in light of the escalating U.S.-Iran tanker war in the Persian Gulf and the Gulf of Oman, while Saudi Arabia has…
Splash Wrap: The risk premium
Shipping has always made money from risk. This week provided a particularly brutal demonstration of how quickly that risk can be repriced. The Strait of Hormuz dominated again, with the US-Iran conflict descending into an increasingly literal tanker-for-tanker war. Washington attacked Iranian tonnage, Tehran claimed strikes on merchant ships and this week registered the greatest …
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