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Oil Tanker Rates Hit Record Highs as Middle East Shipping Risks Soar
By Tsvetana Paraskova of OilPrice.com
Oil tanker rates have jumped to record highs as escalating risks to shipping in and out of the Middle East are prompting traders and tanker operators to undertake inefficient and more expensive trade routes.
While the crude oil supply is actually there, shipping it through the Strait of Hormuz remains a very risky endeavor, especially in light of the escalating U.S.-Iran tanker war in the Persian Gulf and the Gulf of Oman, while Saudi Arabia has started to move crude cargoes out of the region through the north of the Red Sea and from Egypt’s Mediterranean ports.
The much longer workarounds are tying tankers and supertankers for longer with the shippers, tightening the market of available vessels so much that rates are skyrocketing to all-time highs.
For example, the benchmark daily rate for a very large crude carrier (VLCC) to ship oil from the Middle East to China has hit a record high of almost $800,000, per data compiled by Bloomberg.
The price of chartering a supertanker to ship crude from the U.S. Gulf Coast to Asia has now hit a lump-sum fee of $29.5 million per run, and that’s not even factoring in fees for additional war risks or unexpected delays.
“The VLCC positions list is now so tight that no one would be too surprised if we see the WS 400 mark breached for a Fujairah/East run off a prompt-ish position before long, crazy as it may sound,” shipbroker Fearnleys said in its latest weekly report for the week ended September 9.
“The oil still needs to get out through the Strait of Hormuz, and Iranians have increased efforts to stop that from happening. It’s a fragile state of affairs,” the shipbroker added.
“There’s quite a few bottlenecks all at the same time,” Alex Grant, Equinor’s global head of crude, products and liquids trading, told Bloomberg on the sidelines of the APPEC petroleum conference in Singapore.
“The market is quite stressed with all of that, and that’s showing up in the shipping rates.”
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Pakistan's Energy Crisis Set To Ease As Qatari LNG Breaks Through Hormuz
Authored by Irina Slav via OilPrice.com,
Pakistan is about to get some energy relief with tankers carrying Qatari LNG set to arrive in the country this month. The first cargo is seen arriving as early as Thursday, Bloomberg reported, citing ship-tracking data.
Pakistan has been struggling to keep the lights on after Qatar declared force majeure on its exports following Iranian strikes that caused damage to its Ras Laffan LNG hub. Since then, Pakistan has been forced to turn to spot LNG markets and pay hefty premiums for the occasional shipment. Qatar was the biggest supplier of liquefied natural gas to the South Asian nation, under long-term contracts.
The country has issued several prompt liquefied gas delivery tenders over the past three months, consistently paying $20 per million British thermal units and more-a tender earlier this month ended without an order, after Pakistan's state gas company only received one offer, whose price was $27 per million British thermal units. This is three times higher than pre-war LNG prices that Pakistan was paying.
"The international LNG price is around $23.18 per MMBtu, whereas the bid received was $26.969 per MMBtu. The price was considered too high, so a fresh tender has been issued," a senior Pakistan LNG Limited executive said, as quoted by Pakistani media earlier this month. Following the failure of that tender, Pakistan LNG issued a new one.
The Qatari cargoes would go some way towards alleviating the energy crisis in Pakistan, where power generation costs have soared due to the gas crunch and rolling blackouts have become a fixture of life, sometimes lasting for 24 hours in some parts of the country. As of July, these were 38% higher than a year earlier and since then have likely one even higher as LNG on the spot market has also trended higher while QatarEnergy announced an extension of its force majeure.
Tyler Durden Thu, 09/10/2026 - 20:55