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Gulf-to-China supertanker rates climb to $510,000 per day
The Baltic Exchange-linked benchmark for VLCC shipments from the Middle East Gulf to China hit its highest level in two months, with the jump tied to Strait of Hormuz security risk and Persian Gulf producers seeking vessels.
OilPrice reports that the daily rate for chartering a supertanker to lift crude from within the Persian Gulf and deliver it to China has surged this week to the highest level in two months. The benchmark Middle East Gulf-to-China rate for a very large crude carrier (VLCC) rose to as high as $510,000 per day on Monday, according to Baltic Exchange tanker rates data compiled by Bloomberg.
The outlet notes that the move marks the highest daily rate for shipping Middle East Gulf crude on supertankers since the end of June. The higher freight levels reflect exporters seeking tonnage for Asian deliveries even as the security backdrop in the Strait of Hormuz has deteriorated.
OilPrice also points to the incentive for owners willing to navigate the chokepoint risk, with the article citing an expectation of lucrative daily earnings for those who take on the journey through the Strait of Hormuz. It adds that while there has been no shortage of recent VLCC activity, vessel operators are reportedly reluctant to advertise where and when ships will appear in the wider Middle East.
Finally, the story says the rate surge is being driven by the deteriorating security situation in the Strait of Hormuz and by Persian Gulf oil producers looking for vessels to ship their crude.
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