Geopolitical risks have pushed VLCC daily earnings above $80,000, with rates stabilizing around $100,000 due to increased ton-mile demand.
The resurgence of geopolitical risks in the maritime sector has driven freight rates in the crude oil tanker market to their highest levels in recent months. Due to increasing security concerns in the Red Sea and the Strait of Hormuz, many shipowners are redirecting their vessels towards the Cape of Good Hope, which has increased ton-mile demand, while the daily earnings of Very Large Crude Carriers (VLCCs) have exceeded $80,000.
According to market data, despite a decrease in the volume of VLCC cargo passing through the Strait of Hormuz, the significant extension of voyage distances has tightened the effective vessel supply in the market. The increase in total transportation demand from long-haul voyages from the Atlantic to Asia has led to VLCC spot earnings stabilizing at around $100,000 per day, reaching double the levels of the same period last year.
Particularly due to the risk of attacks in the Red Sea and security concerns regarding the Bab el Mandeb passage, some tankers are opting to use the Cape of Good Hope instead of the Suez Canal. Although this route extends the journey by approximately 30 days, shipowners prefer the longer voyage for security reasons.
Brokers indicate that the extended routes are creating supply tightness in the tanker market by increasing ton-mile demand. While the decrease in transits through the Strait of Hormuz may limit cargo volumes in the short term, the longer duration of vessels at sea is supporting the freight market by reducing available fleet capacity.
Market analysts suggest that if security risks in the region persist, VLCC freight rates could maintain their high levels. Recent financial results disclosed by some tanker companies also demonstrate that rising spot freight rates have significantly boosted revenues and profitability.
Source: SeaNews Türkiye
