VLCC Hiring Costs Soar Above $1.2M/Day Amid War-Driven Disruptions

The cost of transporting crude oil has become a significant factor in the global oil trade. Very Large Crude Carrier (VLCC) hiring costs on the Middle East-to-China route have surged above $1.2 million per day due to disruptions caused by the war involving Iran and restrictions around the Strait of Hormuz.

The increase is attributed to longer voyages, ship-to-ship transfers, and the need for more vessels to move the same barrels because of a disrupted logistics network.