A generation witnessed only the bold gamble of an oil tanker, giving this South Korean shipping company control over pricing.

A shipping tycoon's daring gamble in the oil tanker market has given him overwhelming power next month, the vast majority of the supertankers that can load in the United States will be under his control. With the support of Mediterranean Shipping Company (MSC), South Korea's Sinokor Shipping has acquired a large number of Very Large Crude Carriers (VLCC) and gained unprecedented control over the global fleet of tankers available for immediate hire. Competitors have called this expansion a "game-changing move," leading to record-high tanker rental rates. This week, Sinokor's dominance in the market has become increasingly evident: as the main oil export area for the United States, almost all of the VLCCs available for hire along the Gulf Coast have fallen into their hands. Data from the shipping analysis platform Signal Ocean shows that all vessels that can reach the U.S. Gulf Coast and are currently not loaded, will be controlled by Sinokor Shipping within the next 30 days. Signal's estimate is in line with the assessments of many participants in the tanker market, all of whom agree that Sinokor Shipping holds an absolute dominant position in available capacity in that region. This extreme situation is the clearest signal yet that Sinokor Shipping's massive expansion is disrupting the tanker market landscape and pushing up shipowners' earnings. On Thursday, the rental price for a VLCC traveling from the U.S. Gulf Coast to China has exceeded $17.3 million, reaching a new high since 2020. Market insiders point out that Sinokor Shipping's significant available capacity gives them greater control over rental prices. Halvor Ellefsen, director of Fearnley's Shipbrokers UK Ltd. in London, said: "Although it has not yet reached a monopoly status, there are few alternative vessels available, especially for customers who want to rent ships that are currently empty en route." Previously, strong oil tanker freight rates were supported by a surge in oil production, the return of Venezuelan crude to international circulation, and geopolitical risks such as potential conflicts between the U.S. and Iran. Some shipowners estimate that Sinokor Shipping now controls about 150 tankers, close to 40% of the total global fleet of unsanctioned, non-long-term contracted tankers. This has also contributed to a sharp rise in freight rates on the benchmark route from the Middle East to China. Signal Ocean data also shows that, if ships carrying cargo in the next 30 days that can reach the U.S. Gulf Coast are included in the calculation, Sinokor Shipping still controls about two-thirds of the capacity. So far, Sinokor Shipping has not responded to requests for comments. The company has not yet commented on its large-scale acquisitions or leases of VLCCs. Market Dynamics Shipowners typically inform brokers and potential charterers about the availability of their vessels. This information is then disseminated in the market to outline the overall picture of available capacity during a specific period. Therefore, due to different brokers' expectations of when ships will be available, the estimates given by different parties may vary. It is worth noting that many of Sinokor Shipping's tankers are crossing the Atlantic China Welding Consumables, Inc. during a time when many of their vessels completed unloading in Asia in mid-January. When capacity for VLCCs is tight, there are alternative options in the market: as freight rates surge, using two smaller vessels to transport the same cargo may be cheaper than using one large tanker. Recently, rental rates for vessels capable of transporting 1 million barrels of crude oil have also soared. Industry insiders expect freight rates to continue to rise. According to a broker and charter deal report, there is already an order to charter a VLCC from Sinokor Shipping for $18 million, heading from the U.S. Gulf Coast to China in late March. Lois Zabrocky, CEO of the VLCC operator International Seaways, was asked about Sinokor Shipping's acquisition moves during a financial conference call and said: "This represents a fundamental change in the shipowner structure, and it is likely to be sustainable."