Supertanker Charter Rates Hit Record $1.4 Million per Day Amid Hormuz Bottleneck

Daily freight rates for Very Large Crude Carriers (VLCCs) have reached an unprecedented $1.4 million on the Persian Gulf to East Asia route as regional conflict forces an inefficient maritime logistics model. In response to regional attacks, producers have deployed a shuttle system where crude moves through the Strait of Hormuz and is transferred ship-to-ship in the Gulf of Oman before embarking on long-haul routes. This multi-ship transfer protocol has tied up massive tonnage in the Middle East, draining vessel availability globally and driving cross-basin charter costs to historic highs, including Trafigura chartering the Alexandros from the U.S. Gulf Coast to China for $76 million.

// Background

Following heightened military tensions and attacks on maritime traffic in the Persian Gulf, oil producers implemented risk-mitigation measures to protect exports. Rather than sending long-haul crude carriers directly through the Strait of Hormuz, operators use shuttle tankers to transit the strait and execute ship-to-ship transfers to larger tankers in the Gulf of Oman. While this strategy shields vessels from direct exposure and allowed late-September crude flows to recover, it requires multiple vessels per trade route, removing substantial tonnage from the worldwide tanker pool.

// Key Developments

• Supertanker charter rates touched an all-time record of $1.4 million per day on Persian Gulf to East Asia journeys.
• Trafigura chartered the VLCC Alexandros for a U.S. Gulf Coast to China route at $76 million, equivalent to roughly $38 per barrel in freight costs alone.
• Rates on the U.S. Gulf to Japan route reached an offered fee of $82 million, a 50 percent increase over three weeks.
• Ship-to-ship transfer setups outside the Strait of Hormuz have tied up fleet capacity, creating spillover demand and rate hikes for Suezmax and Aframax tankers.
• Vitol CEO Russell Hardy warned that Middle East oil disruptions have transitioned from a crude and product supply crunch into an acute shipping crisis.