VLCC daily earnings hit $805,000 as attacks in the Strait of Hormuz disrupt shipping, tightening tanker supply and raising freight rates.
The increase in attacks on commercial vessels in the Strait of Hormuz has driven freight rates in global oil transportation to record levels. According to data from shipbroking and maritime research firm Clarksons, the global average daily earnings for Very Large Crude Carriers (VLCCs) reached $805,000 on October 9, setting a new record.
According to a report by the Financial Times dated October 13, the rising security risks in the Persian Gulf have led some shipowners to avoid sending vessels to the region, which has tightened tanker supply. The shift towards alternative loading ports and extended voyage durations have accelerated the rise in freight rates.
Daily earnings have surged to $805,000.
Clarksons' market data from October 9 recorded the average daily earnings for VLCC class tankers worldwide at $805,000.
During the same period, it was reported that daily earnings for some tanker voyages from the Middle East Gulf to China exceeded $1.4 million.
According to data reported by maritime research firm Riviera, on October 9, the daily earnings on the Middle East Gulf-China route reached approximately $1.41 million.
These figures represent freight earnings calculated based on the operating costs of the vessels and voyage conditions. Therefore, they do not equate to the net profit of a tanker company.
Oil shipments from Hormuz sharply declined.
According to data from commodity data and analytics firm Kpler, oil shipments from the Persian Gulf reached an average of 15.5 million barrels per day in September.
However, with the intensification of attacks around the Strait of Hormuz, there was a significant decline in transit volumes.
According to data published by Kpler on October 13, the amount of oil transported through the Strait of Hormuz on October 11 fell to 2.9 million barrels per day. This marked the lowest daily level for October up to that date.
Kpler noted that the reported amount could be revised upwards due to vessels that may be detected later through satellite imagery.
24 vessels attacked in two weeks.
According to information compiled by the Financial Times from the UK Maritime Trade Operations (UKMTO) and maritime security sources in Europe, 24 vessels were targeted in attacks around the Strait of Hormuz during the two-week period leading up to October 11.
On just October 11, it was reported that six commercial vessels were attacked.
Among the attacked vessels were oil and petroleum product tankers, as well as a container ship.
In light of the increased security risks, some tankers have reportedly departed from the Fujairah offshore area in the United Arab Emirates, while others have headed to U.S. ports in the Gulf of Mexico to load cargo.
Extended voyages have increased tanker demand by 13%.
Clarksons calculated that the longer voyage routes caused by conflicts in the Middle East and ship-to-ship (STS) transfers have increased tanker demand by approximately 13%.
The need for tankers to cover longer distances to reach loading areas and the time-consuming nature of offshore oil transfers are limiting available vessel capacity.
Particularly, STS operations conducted around the Gulf of Oman can cause vessels to remain in the same area for days.
War risk is driving up freight prices.
According to maritime market experts, the freight premiums demanded by tankers transiting the Strait of Hormuz are not solely due to war risk insurance.
Angelica Kemene, Head of Market Analysis and Decarbonization Strategies at Optima Shipping Services, told Riviera Maritime Media that VLCC freight rates in the Gulf have reached approximately 16 times the average for the period from 2020 to 2025.
Kemene noted that factors such as crew safety, the risk of vessel detention, and the approval processes of chartering companies also influence freight premiums.
As attacks in the Strait of Hormuz continue, the tightness in vessel supply and the demand for alternative transport routes remain key determinants of the tanker market.
Source: SeaNews Türkiye
