Supertanker Rates Hit $800,000 a Day as Gulf Tensions Escalate

Supertanker rates on the Middle East-to-China shipping route have skyrocketed to $800,000 per day, according to the Baltic Exchange. This surge is attributed to the destruction of five Iranian-linked tankers by US forces, with Iran threatening further escalation. The freight costs indicate that crude oil and refined products are still reaching global markets but at a higher price.

US Gulf-to-Asia shipments on very large crude carriers average $29.5 million per voyage, equivalent to $15 a barrel before additional war-risk charges or delays. Experts predict that two-year leasing rates may rise by 20% to 30%. Manu Sehgal, vice president of strategy and feedstock supply at Indian refiner HPCL-Mittal Energy, attributes the bottleneck to shipping issues rather than a lack of crude volume.

Fleet transfers in the Gulf of Oman are helping maintain oil flow through the Hormuz chokepoint. Vitol's CEO estimates 10 million barrels a day transit the waterway, while Goldman analysts suggest around 15 million. The rise in Gulf of Oman-to-East Asia tanker rates has surged 85% since inception, now averaging nearly $386,000 daily.

These high costs contribute to inflation pressures for central banks, potentially affecting gasoline, diesel, freight, and consumer goods prices.