Iran War Drives Oil Tanker Rates Past $1 Million Per Day
The ongoing war in Iran has led to a significant increase in oil tanker rates, with vessels crossing the Strait of Hormuz now earning over $1 million per day.
This is a stark contrast to the pre-war era, when similar transportation costs were around $208,000 per day, according to Baltic Exchange data cited by Fortune.
The price surge can be attributed to heightened risks and urgency in moving crude through the key shipping chokepoint.
'It's all about risk,' said Ioannis Papadimitriou, principal freight analyst at Vortexa. This risk factor has become a major reason for the rise in shipping costs.
The Strait of Hormuz has seen commercial traffic significantly decrease due to the ongoing conflict, further exacerbating the situation.
Insurance costs have also skyrocketed, with premiums rising to about 10% of the assets aboard, compared to around 0.5% to 1% before the war.