Gulf tanker rates surge as Hormuz traffic starts to recover

LONDON: Tanker owners are charging sharply higher rates for ships operating through the Gulf and the Strait of Hormuz as vessel traffic begins to recover, according to shipping data and industry sources.

The cost of hiring a tanker outside the Strait of Hormuz rose to $190,500 a day from $106,500 a week earlier, ship brokers and industry sources said. Rates for vessels hired outside the wider Gulf region also climbed strongly.

For very large crude carriers carrying cargoes from within the Gulf and transiting Hormuz, average daily earnings rose to nearly $470,000, according to estimates from ship brokers and industry sources. That was more than $50,000 higher than a week ago and marked a record level.

Clarksons said tanker owners were positioning for increased crude shipments from the Middle East in the weeks ahead. The ship broker said the market had remained firm even after cargo volumes fell following the start of US-Iran hostilities, indicating limited vessel availability. In a note, it said:

"Tanker owners are preparing for an influx of Middle East crude cargoes in the coming weeks and are emboldened by the fact that spot TCEs (earnings) averaged above $100,000/day despite the loss of … cargo volume since the US-Iran hostilities commenced,"

Clarksons added that the supply side remained exceptionally tight and said any broader reopening of Hormuz would put further pressure on available tanker capacity.