Lates News

Supertankers are racing to the Middle East to profit from a surge in oil freight rates through the Strait of Hormuz, further exacerbating a global shortage of vessels and pushing shipping costs higher. Despite continued attacks on ships, crude oil volumes shipped through the strait have rebounded in recent weeks to near pre-war levels. However, the risks to shipping have caused tanker freight rates to soar, with the cost of transporting oil from the Gulf to East Asia now more than six times higher than before the conflict. Data from shipping data provider Signal Ocean shows that of the world's roughly 850 very large crude carriers (VLCCs), more than 40 per cent are currently either in the Persian Gulf or within a few days' sail of it. Freight analyst Georgios Sakellariou said: "The past few months have been the best period ever for the crude tanker industry. The main problem is the inefficiency of the ship-to-ship transfer system outside the Strait of Hormuz, which is absorbing a huge amount of vessel capacity locally and elsewhere." The voyage from the Persian Gulf to East Asia takes about three weeks. Assessed VLCC freight rates reached a record high of nearly $1.4mn per day on Wednesday. That is a surge of almost 540 per cent compared with pre-war levels, while Brent crude prices have risen about 40 per cent over the same period.