The charter rates for tankers have reached unprecedented levels this week. The average rates for VLCC tankers globally have now surpassed $600,000 per day (p/d), and in the Strait of Hormuz, this rate is nearing approximately $800,000 to $1.5 million per day. This significant increase is due to the rising volume of oil transported through the Strait of Hormuz, which has now exceeded 7.5 million barrels per day.
Reasons for the increase in tanker charter rates
The increase in tanker charter rates is due to changes in oil transportation routes from Saudi Arabia towards the Persian Gulf and also rising transportation costs. Transportation costs have now reached 15% of the value of each barrel of oil, which is significantly higher than the historical average of 2%. Tankers carrying petroleum products such as Aframax and LR2 are also seeing rate increases due to rising demand in Asia and the Gulf of Mexico.
Impact of US-Iran negotiations
There is a possibility of rate reductions if negotiations between the United States and Iran are successful. These negotiations are taking place alongside the United Nations General Assembly this week and may lead to the reopening of the Strait of Hormuz by Iran. Additionally, the potential ban on diesel exports from the United States is considered a risk for the tanker market carrying petroleum products.
State of the cargo ship market
In the cargo ship sector, Capesize ship rates have remained steady at around $52,500 per day. The traffic of cargo ships in the Panama Canal has also improved due to the grain harvest season, and water levels in this canal are recovering. In the tanker market, interest in purchasing older ships aged around 20 years within the geographical range from Singapore to the Persian Gulf has increased.
Recent sales in the tanker market
In the Suezmax sector, the ECO-M/E unit named SPEEDWAY (with a weight of 158,000 tons DWT and built in 2017) was sold for $99 million. Additionally, the LR2 ship named EUROINTEGRITY (with a weight of 105,000 tons DWT and built in 2009) was sold for $60 million.
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