Supertanker Rates Near 2020 Peak Driven by Middle East-China Route Surge

Daily charter rates for Very Large Crude Carriers (VLCC), each with a capacity of 2 million barrels, have surged to between $200,000 and $208,000. The Middle East Gulf to China (MEG-China) route has emerged as the primary driver behind this six-year high in shipping costs. Current rates are now approaching the historic peaks seen in April 2020 during the Saudi-Russia oil price war. Geopolitical tensions between the U.S. and Iran have spiked war-risk premiums, while supply remains tight as South Korea’s Sinokor group controls nearly one-third of the available global fleet. These escalating logistical costs are expected to benefit operators like Bahri and DHT Holdings while exerting significant upward pressure on global crude benchmarks.