Supertanker rates from the Persian Gulf hit records; daily earnings top 400,000 dollars

Rates for very large crude carriers (VLCCs) on the Persian Gulf to East Asia route hit their highest levels on record this week. According to shipping-market reports, daily earnings on the Persian Gulf to China route topped 400,000 dollars, peaking at about 424,000 dollars a day; for some cargoes transiting the Strait of Hormuz, daily earnings were reported near 470,000 dollars.

The surge is driven by the Strait of Hormuz crisis and the withdrawal of war-risk insurers, which has upended the economics of moving crude. The jump raises the cost of delivering Persian Gulf oil to Asian markets and feeds into the final price of imported oil for consuming countries.