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VLCC tanker rates surge amid Middle East geopolitical tensions
The market for Very Large Crude Carriers (VLCC) is experiencing a massive surge in daily charter rates and vessel values. According to data from the Baltic Exchange, average daily rates rose from approximately $198,000 in July to $722,946 by September 18, representing an 807.1% increase over the past year.
On specific routes, such as the Persian Gulf to China, daily returns have reached as high as $1.241 million. This rally is also spreading to other routes, including West Africa to China and the US Gulf to China.
Analysts from Xclusiv Shipbrokers attribute this volatility to several factors: geopolitical tensions surrounding Iran and the Strait of Hormuz, reduced actual vessel availability, and longer transit times due to route diversions. These factors are increasing the demand for tankers and impacting global supply chains and inflation.
Entities
Baltic Exchange · Iran · Persian Gulf · Strait of Hormuz · Xclusiv Shipbrokers
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] The average VLCC rate rose to $272,000 per day in August. www.businessdaily.gr · www.flash.gr · www.capital.gr
- [● 3 SOURCES] The average VLCC rate was approximately $198,000 per day in July. www.businessdaily.gr · www.flash.gr · www.capital.gr
- [● 3 SOURCES] The average VLCC rate reached approximately $449,000 per day in the first half of September. www.businessdaily.gr · www.flash.gr · www.capital.gr
- [● 3 SOURCES] The VLCC index reached approximately $722,946 per day by September 18. www.businessdaily.gr · www.flash.gr · www.capital.gr
- [● 3 SOURCES] Geopolitical tensions around Iran and the Strait of Hormuz are limiting vessel availability. www.businessdaily.gr · www.flash.gr · www.capital.gr