Gulf-to-China Supertanker Rates Surge to $510,000 Daily

Supertanker Charter Rates Hit Two-Month High

The daily rate for chartering a supertanker from the Persian Gulf to China has reached $510,000. This is the highest rate in two months. The increase, reported on Monday, shows rising demand for vessels amid worsening security in the Strait of Hormuz. This information comes from data compiled by Bloomberg from the Baltic Exchange.

The rise in rates means that tanker owners willing to navigate the Strait of Hormuz can make significant profits. Shipbroker Fearnleys noted that there is much activity among very large crude carriers (VLCCs). However, operators are careful about disclosing their movements due to potential threats in the area. The broker stated, "There is huge money to be had for the risk takers out there."

Gulf oil producers are changing their shipping strategies to avoid the Strait of Hormuz, which is becoming riskier. The cost for VLCCs to transport oil from the Gulf has increased sharply. Some voyages now cost as much as $31 million. Saudi Aramco has resumed crude loadings at its Ras Tanura terminal. They are using ship-to-ship transfers off Fujairah to help deliver oil to Asian markets.

Despite the rising rates, the number of available VLCCs has dropped significantly. Currently, only 372 supertankers are loaded. This trend is pushing shipping costs higher across Asia. The overall number of empty VLCCs has reached a five-year low. Analysts note that it is challenging to estimate how much oil is actually leaving the region. This is especially true when vessels operate in 'dark mode' with transponders turned off.

Based on reporting by: oilprice.com