Tanker Rates Skyrocket Amid Tight Supply and Rising Demand

Oil tanker operators are cashing in on rising demand and tight supply as rates for hiring vessels nearly double. The average daily earnings for very large crude carriers (VLCCs) have jumped to a record of nearly $470,000 a day for cargoes inside the Gulf that need to go through the Strait of Hormuz.

The increase is attributed to Middle Eastern producers ramping up exports and tankers stuck in the region with cargoes onboard. As many as 100 tankers remain stranded, adding to a shortage of available vessels.

Tanker owners are preparing for an influx of crude cargoes in the coming weeks, according to ship broker Clarksons. The firm notes that spot TCEs (earnings) averaged above $100,000/day despite the loss of cargo volume since US-Iran hostilities commenced.