Oil shipping rates have risen sharply amid fears of escalation around Iran and threats to the Strait of Hormuz.
Oil shipping rates have risen sharply and could continue to rise amid fears of escalation around Iran and potential disruptions to supplies through the Strait of Hormuz. Revenues for the largest tankers have already reached multi-year highs, and regional tensions are increasing pressure on the market, Bloomberg warns.
According to the agency, over the past one or two months, the South Korean company Sinokor has acquired or chartered a significant number of supertankers and now controls about 120 VLCCs.
“Military action in the Middle East is likely to lead to freight rates rising to levels not seen since 2019,” said Oil Brokerage analyst Anup Singh.
Freight costs on other routes are also rising: rates for VLCCs sailing from the US Gulf of Mexico to China are at their highest since late 2022, according to Baltic Exchange data.
