Gulf-to-China Supertanker Rates Soar Amid Hormuz Uncertainty

The daily rate for chartering a supertanker to carry crude oil from the Persian Gulf to China has reached its highest point in two months. The benchmark Middle East Gulf-to-China rate for a very large crude carrier (VLCC) jumped to $510,000 per day on Monday, according to data compiled by Bloomberg and the Baltic Exchange of tanker rates.

This surge in rates suggests that tanker owners who are willing to take on the risks associated with traveling through the Strait of Hormuz can earn lucrative daily earnings. The Strait has seen a deteriorating security situation, which is driving up the demand for vessels to ship crude oil out of the region and into Asia.

The Baltic Exchange data shows that tanker owners are motivated to keep their operations private in order to avoid drawing attention from hostile elements. Shipbroker Fearnleys noted that there is 'huge money to be had' for those willing to take on the risks involved in shipping oil through the Strait of Hormuz.