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Rerouted tankers and higher fees lift VLCC operators amid Hormuz tensions

VLCCs typically move about 2 million barrels per voyage, and the Strait of Hormuz disruption has pushed some traffic to reroute around the Cape of Good Hope, driving rates up roughly 30% to 50% to cover longer trips.

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MarketBeat Ratings argues that the most reliable beneficiaries of shipping disruptions during the Iran conflict are the tanker owners, particularly companies operating very large crude carriers, or VLCCs, rather than extractors or refiners.

The outlet notes that a normal day sees more than 100 VLCCs transit the Strait of Hormuz, but that this has been disrupted by actions including the cancellation of a ceasefire and subsequent steps involving a U.S. blockade, with proposals that include a 20% fee on cargo for safe passage.

According to the article, tanker rates are measured in tonne-miles, with longer routes increasing what shippers pay, and an additional war premium. It also says VLCC breakevens can be as low as $15,000 per day, so sustained elevated rates can materially support earnings even if total volumes are lower.

MarketBeat Ratings highlights that many Gulf routes are being rerouted around the Cape of Good Hope, which it says has driven rates up about 30% to 50% to offset longer voyages. It points to Frontline PLC and DHT Holdings as potential beneficiaries, citing their VLCC fleets and ability to charge higher rates as routes and timelines remain uncertain.

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