$1 million a day for an oil tanker as Iran war triggers global shipping crunch
The Iran war has pushed the cost of chartering some VLCC oil tankers above $1 million a day as vessels are tied up around Oman and longer routes tighten global shipping capacity.
Euro Times – London
The war with Iran has created a new pressure point in global energy markets: the shortage is no longer only about oil supplies, but also the giant vessels needed to transport crude, as tanker charter costs surge.
The Wall Street Journal reported that the cost of chartering a very large crude carrier, or VLCC, to load oil in the Gulf and transit the Strait of Hormuz exceeded $1 million a day earlier in September, citing Windward data.
The crisis has intensified after attacks disrupted Saudi Arabia’s East-West pipeline, pushing more Saudi crude back toward the Hormuz route. At the same time, some Saudi-linked voyages are avoiding Bab el-Mandeb and sailing around the Cape of Good Hope, lengthening journeys and reducing available tanker capacity.
According to Clarksons Research, around 15% of the global VLCC fleet is now positioned off Oman, with vessels being used for short voyages and ship-to-ship oil transfers outside Hormuz.
Saudi Aramco has used such transfers to move crude from Gulf ports to other vessels near Oman. The method keeps exports flowing but ties up tankers that would otherwise be available for other routes.
The result is a shipping bottleneck that could keep fuel costs elevated even if crude prices themselves ease.
Source: The Wall Street Journal.
