Trafigura Charts Supertanker for $76 Million Amid Rising Shipping Costs
A supertanker named Alexandros was chartered by Trafigura to transport oil from the U.S. Gulf Coast to China at a cost of $76 million, significantly higher than pre-war levels which ranged between $7 million and $10 million for similar routes. The increased expense reflects soaring global shipping costs driven by instability in the Middle East. The war has led to a shortage of available tankers, prompting oil producers to adopt a shuttle system through the Strait of Hormuz. This method involves transferring cargo from one ship to another in the Gulf of Oman to reduce exposure to potential Iranian attacks and facilitate continued crude exports. The cost per barrel for this journey is estimated at $38. The surge in shipping costs has broader implications, affecting global oil trade dynamics as more ships are required to maintain export levels through Hormuz.
Topics: charter costs Middle East crisis oil exports supertanker