A trading firm has chartered a supertanker to sail from the U.S. Gulf Coast to China for $76 million, roughly ten times the pre-war rate for the route. The jump reflects a shortage of available tankers as the Middle East crisis pushes producers to move oil through the Persian Gulf via a shuttle system that requires far more ships.
A supertanker was recently chartered to sail from the U.S. Gulf Coast to China for $76 million, a source familiar told CNBC, as shipping costs soar worldwide because of the crisis in the Middle East.
Trafigura's $76 million charter
The trading firm Trafigura chartered the vessel, the Alexandros, and the ship is expected to load around Nov. 19, the source said. A normal rate for the route based on pre-war levels would be $7 million to $10 million, far below the current charter price.
Cost per barrel climbs to $38
The charter comes to $38 per barrel of oil, assuming the tanker holds two million barrels. Shipping costs have exploded as the war in the Persian Gulf has led to a shortage of available tankers.
Brent crude, the global oil benchmark, also moved lower. ICE's December contract last traded at $100.41, down 0.17%.
Shuttle system eases Hormuz risk
Middle East producers are using a shuttle system to export oil through the Strait of Hormuz. A loaded tanker crosses the strait and then transfers its cargo onto another ship in the Gulf of Oman that carries it to Asia.
This system reduces the exposure to Iranian attack and has led to a rebound of crude exports through Hormuz. But it also requires many more ships to get the oil out of the Gulf.
Source: US Top News and Analysis
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