WANA (Sep 14) – Supertanker charter costs continue to hit record highs in the Strait of Hormuz, even as the United States asserts full control over the strategic waterway.

 

Average earnings for Very Large Crude Carriers (VLCCs) have surged by more than 40% since the beginning of September.

 

The sharp rise in freight costs, however, is not driven solely by the ongoing Hormuz crisis. According to a recent report by the Financial Times, high operational expenses associated with continuous air support have prompted the U.S. Navy to advise commercial tankers to transit the strait only during strictly limited time windows.

 

Consequently, tanker charter rates on the Persian Gulf-to-China route have broken historical records, exceeding $800,000 per day.

 

At the same time, reduced traffic through Hormuz and growing Asian demand for alternative crude sources have pushed freight offers from the Gulf of Mexico to Asia to unprecedented levels. The cost for a single voyage along this route has topped $29 million, translating to roughly $15 per barrel.

 

This means that for every barrel of oil purchased on this route, $15 is spent solely on transport to its destination.