Ultra-large crude carriers are racing to the Middle East to capture elevated
freight through the Strait of Hormuz, worsening a global ship shortage and
pushing rates higher. Attacks on vessels persist, but recent weeks' volumes
transiting the strait have rebounded to near pre-conflict levels. The freight
surge has driven Gulf-to-East Asia voyage costs to more than six times
pre-conflict norms. Shipping data provider Signal Ocean estimates that of about
850 VLCCs globally, over 40% are either in the Persian Gulf or within a few
days' sailing distance. Georgios Sakellariou said: "The past months have been
the best on record for the crude tanker industry. The main issue is inefficient
ship-to-ship transfers outside the Strait of Hormuz, which has heavily drained
local and regional vessel supply." A Persian Gulf-to-East Asia voyage takes
roughly three weeks. Assessed VLCC rates hit a record near $1.4m/day on
Wednesday, up about 540% versus pre-conflict; Brent has risen roughly 40% over
the same period.
