The cost of hiring an oil tanker on the industry's benchmark route from the Persian Gulf to China reached $1.035 million per day, a first-time high. This surge is attributed to the ongoing war in Iran, which has significantly reduced the number of ships willing to navigate the Strait of Hormuz. The primary method for exporting Persian Gulf oil has shifted to shuttling barrels through Hormuz to collection points outside the strait, further straining tanker availability.
Global tanker freight rates are at record levels, reflecting the strain on oil markets as participants navigate the conflict in the Persian Gulf and complex logistical workarounds. For example, earnings for supertankers on the Middle East-to-China route are nearly $800,000 a day, while the US Gulf to Asia run sees charterers offering a record lump-sum fee of $29.5 million, equating to almost $15 per barrel before additional war risks or delay fees. This increase underscores a deepening global energy crisis.
In response to the supertanker shortage and soaring freight rates, shipowners have placed orders for more than twice as many supertankers in 2026 than in all of 2025, representing a buying spree exceeding $20 billion—the largest in at least 25 years. Data from Signal Group shows 217 Very Large Crude Carriers (VLCCs) ordered so far in 2026, compared to 93 last year. This ordering surge indicates an expectation that oil will increasingly be transported longer distances from the Atlantic basin as buyers diversify away from Middle Eastern sources, and also reflects strong freight rates and an aging fleet.
Oil-producing nations are increasingly seeking to own tanker fleets as a strategic priority, despite high prices and limited supply. Second-hand VLCCs are now valued at approximately $182 million, exceeding the $130 million cost of newbuilds, because new ships take two to three years to construct. Sinokor, already the world's largest operator of supertankers, has acquired around 70 vessels this year, chartering them at significantly higher rates, and controls an estimated 40% of the available supertanker fleet. The United Arab Emirates, through ADNOC Logistics, has also purchased nine VLCCs for $1.1 billion since late June, further driving up prices.
