Oil Tanker Earnings Hit Record $647,000 Daily Rate

Daily earnings for oil tankers on the benchmark route from Saudi Arabia to China hit a record $647,000 on August 28, 2026, an increase of more than ten times the rate from the previous year. This surge follows the outbreak of the Iran war and subsequent disruptions in the Persian Gulf, which have rendered transit through the Strait of Hormuz hazardous and opaque.

Sinokor Merchant Marine Co., Ltd. has contributed to the upward pressure on market rates by hiring out ships at elevated prices after Ga-Hyun Chung executed a large-scale acquisition of vessels prior to the conflict. Shipowners are now demanding high premiums to risk the waterway, leading some operators to transfer cargoes to different tankers outside the strait to mitigate risk.

Additional supply constraints stem from Houthi rebel attacks on Saudi tankers. These attacks have forced Saudi Arabia to redirect some exports around Africa via the Mediterranean, adding approximately 30 days to journeys destined for Asia. Patrick Pouyanné, CEO of TotalEnergies SE, noted that moving barrels through the Strait of Hormuz now costs approximately $20 million.