Very large crude carrier (VLCC) charter rates from the Middle East to China via the Strait of Hormuz have surged over the past 24 hours to around 700 Worldscale points, equivalent to roughly $20 per barrel of crude, as tanker traffic has sharply dwindled due to the ongoing war in Iran. Market reports indicate individual fixtures at 500–525 WS with daily earnings near $350,000 per ship, while the Baltic Exchange is consulting panelists on how to adjust its benchmark indices to reflect the exceptional conditions.
In the last day, the long-haul crude tanker market on Middle East–Far East routes has experienced a dramatic spike in VLCC charter rates as conflict-related disruptions in and around Iran severely constrain traffic through the Strait of Hormuz. According to shipbrokers cited by international business press, South Korean operator Sinokor is seeking around 700 Worldscale points to carry Middle East crude to China, which analysts estimate at roughly $20 per barrel compared with about $2.50 last year. At the same time, a VLCC controlled by Greece’s Dynacom Tankers has reportedly been fixed at about 525 WS, translating into daily earnings on the order of $350,000 for the vessel. In response, the Baltic Exchange has initiated consultations with its panelists over how to appropriately reflect these unprecedented rate levels in its benchmark freight assessments.
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