Middle East Disruption Drives Record Tanker Earnings to $642,000 a Day

Record-breaking tanker earnings are soaring as Middle East disruption ties up vessels and squeezes shipping capacity. Supertanker earnings have surged to almost $642,000 a day globally, a 40 per cent increase in just one week, according to Clarksons Research.

The Strait of Hormuz and Bab Al Mandeb restrictions force tankers into longer journeys and complex ship-to-ship transfers. Rising diesel prices and war risk premiums have further hiked prices, making tanker traffic through the Strait of Hormuz severely constrained since the US-Israeli war on Iran began in late February.

Despite a recovery in crude flows from the Arabian Gulf, the disruption has shifted from keeping oil off the market to tying up ships needed to move it. Tanker capacity has become increasingly scarce as vessels spend longer completing journeys and the fleet gets caught up in Arabian Gulf logistics.