All articles tagged with #vlcc
Crude tanker rates have surged to unprecedented levels, with suezmax and VLCC indices hitting all-time highs. This spike is driven by a 'cascade' effect where Middle East producers route more oil through the Strait of Hormuz under US protection, creating bottlenecks that force charterers to split cargoes and drive up rates across all tanker classes.
VLCC spot rates have jumped to historic highs across MEG, GOO, West Africa, and the US Gulf, with some routes approaching $1 million per day. The surge is driven by Hormuz transit disruptions, fleet inefficiencies in MEG/GOO trades, Sinokor’s large VLCC footprint, and a rebound in Chinese crude imports. With refinery margins remaining strong, rates could climb further, but a ceiling may arise if crude prices push refining profits down and demand destruction kicks in.
Nine oil tankers, including several VLCCs, have transited the Strait of Hormuz this week as the US and Iran contest control of the sea lane. Overall tanker traffic remains far below February levels (about 90% down on recent Tuesdays) due to the dispute and threats of attack, with the ceasefire not yet restoring normal flows. The strait, a key chokepoint that handled roughly 20% of global crude, continues to be a focal point for energy markets still reeling from the disruption.
Three supertankers exited the Strait of Hormuz amid a fragile two-week US-Iran ceasefire, highlighting that the chokepoint—through which roughly 20% of global oil and LNG shipments move—remains active as ships like Serifos, Cospearl Lake and He Rong Hai transit via the Hormuz Passage, carrying crude from Saudi Arabia, the UAE and Iraq; shipping data from LSEG also shows other tankers heading into the Gulf while hundreds remain queued.