Supertanker costs break record: $800.000 per day

Transporting oil by supertanker from the Middle East to China has reached a new price record. Daily charter rates have risen to nearly $800.000, while the historical average was around $45.000 per day. Rates have more than doubled in the past two months, as fewer and fewer ships are willing to sail through the Strait of Hormuz.

In brief:

• Supertanker rates on the Middle East to China route are approaching $800.000 per day, an absolute record.
• That is seventeen times the historical norm of $45.000 per day, according to data service Kpler.
• A single tanker voyage from the US Gulf to Asia now costs $29.5 million, excluding war risk premiums.

Rates seventeen times above historical average

According to figures from maritime data platform Kpler, current rates are seventeen times higher than usual. By way of comparison, shippers previously paid an average of $45.000 per day for the use of a supertanker on this route.

A single voyage from the Gulf of Mexico to Asia now costs $29.5 million, even before any war risk surcharges are included. That amounts to $15 per barrel in shipping costs alone.

Strait of Hormuz causes fleet tightness

The sharp rise is linked to shipping companies’ growing reluctance to sail through the Strait of Hormuz. This waterway, located between Iran and Oman, is one of the most important passages for global oil transport. As fewer ships dare to take the route, available shipping capacity declines and rates rise.

Rates have more than doubled in two months, as can also be seen in data from the Baltic Exchange. Higher shipping costs ultimately feed through into the prices of fuel and other goods worldwide.