The next inflation shock: $1 million-a-day oil tankers
The world's VLCC fleet is relatively small, with about 925 tankers controlled by a handful of shipping tycoons.
The looming threat of another inflation shock is on the horizon for the shipping industry, with the cost of transporting oil surging to unprecedented heights. Former U.S. President Bill Clinton's question of where the nearest carrier is during a crisis may have been replaced by the more pressing inquiry of where the nearest oil tankers are and whether there are enough of them available.
The immediate response to this question is a resounding "no," as the shipping industry grapples with a severe shortage of tankers. The price of hiring these massive vessels, known as Very Large Crude Carriers (VLCCs), has skyrocketed to a staggering $1.1 million per day, a rate that would have made shipping magnate Aristotle Onassis weep tears of joy. Just a few months ago, most shipowners would have considered $100,000 a day an exceptional price, with $50,000 being a desirable figure.
Poten & Partners, a shipbroker known for its traditional approach, has expressed amazement at the current rates, stating that seasoned market veterans are struggling to comprehend the unprecedented developments. The situation has left many in the industry scratching their heads, trying to make sense of the dramatic price increase.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
