Oil Tankers: Freight rates soar as Gulf shipping demand drives record profits

Oil Tankers operating on key Middle East routes are generating record profits as freight rates surge across the Gulf region, driven by stronger crude exports, limited vessel availability and the gradual reopening of shipping lanes through the Strait of Hormuz.

Industry sources say charter rates for tankers operating around the Gulf have risen sharply, climbing to approximately $190,500 per day from $106,500 just a week earlier. The increase reflects growing demand for shipping capacity as oil producers expand exports and maritime traffic slowly returns.

Analysts attribute the jump in earnings to a tightening supply of available vessels. While shipping activity through the Strait of Hormuz has resumed following recent tensions and a ceasefire between Iran and the United States, traffic remains well below the pre-crisis average of about 125 vessels per day.

Market estimates indicate that nearly 100 tankers carrying cargo remain stranded inside the Gulf, further reducing vessel availability and adding pressure to freight markets.

The shortage has pushed earnings for very large crude carriers (VLCCs) to unprecedented levels. Shipbrokers estimate that daily returns for Gulf-related voyages through Hormuz have approached $470,000, representing an increase of more than $50,000 within a single week.

Analysts at Clarksons said spot market earnings have remained exceptionally strong despite earlier disruptions, highlighting continued tightness in global tanker supply.

Middle Eastern energy producers, including Abu Dhabi National Oil Company, have increased crude sales through multiple tenders, encouraging buyers to secure cargo directly from Gulf terminals and boosting demand for tanker services.

At the same time, war-risk insurance costs have eased. Industry sources report that premiums have fallen to around 3% of a vessel’s value, compared with nearly 5% a week earlier. The reduction could lower shipping expenses by hundreds of thousands of dollars on individual voyages.

In South Asia, refiners such as Reliance Industries have reportedly resumed sourcing crude from the Gulf region as supply chains stabilise.

Despite the current boom, shipping experts warn that freight markets remain highly sensitive to geopolitical developments. Any shift in regional tensions or diplomatic negotiations could quickly alter tanker demand, vessel availability and freight rates.