A Shortage of Oil Tankers Is Threatening to Keep Gas Prices High
A global shortage of supertankers is driving oil shipping rates to record levels, threatening to keep gasoline prices high. This supply crunch stems from a war between the US, Israel, and Iran that began in February and has forced a redraw of trade routes. While Very Large Crude Carrier (VLCC) rates have exploded and some vessels earn $1 million per day, the industry is responding with a spike in new tanker orders. Trafigura suggests a buying spree in the Middle East could prolong this boom.
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- ✓ A global shortage of supertankers is pushing oil shipping rates to record highs.
- ✓ The war involving the US, Israel, and Iran began in February.
- ✓ Shipping rates for Very Large Crude Carriers have exploded.
- ✓ New tanker orders have increased as trade routes are redrawn.
What changed
New tanker orders have spiked as the industry attempts to address the supertanker shortage and changing trade routes.
Live updates
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Supertanker Shortage Drives Shipping Rates to Record Highs
A global shortage of supertankers is driving oil shipping rates to record levels, threatening to keep gasoline prices high. This supply crunch stems from a war between the US, Israel, and Iran that began in February and has forced a redraw of trade routes. While Very Large Crude Carrier (VLCC) rates have exploded and some vessels earn $1 million per day, the industry is responding with a spike in new tanker orders. Trafigura suggests a buying spree in the Middle East could prolong this boom.
Why it matters
The conflict has increased the risk for vessels sailing through the Strait of Hormuz. Higher shipping costs often act as an inflation shock by increasing the final cost of fuel. Long-haul oil flows are currently threatened by the lack of available large-capacity vessels.
What is confirmed
- A global shortage of supertankers is pushing oil shipping rates to record highs.
- The war involving the US, Israel, and Iran began in February.
- Shipping rates for Very Large Crude Carriers have exploded.
- New tanker orders have increased as trade routes are redrawn.
Still unconfirmed
- Some oil tankers sailing across the Strait of Hormuz are earning $1 million per day.
- Trafigura believes a Middle East tanker buying spree will prolong the current boom.
What to watch next
- Volume of tanker deliveries from new orders
- Changes in transit numbers through the Strait of Hormuz
- Official gasoline price adjustments linked to shipping costs
confidence 90%Sources used for this update (11)
- Semafor — New tanker orders spike as Iran war redraws trade routes
- Fortune — The Iran war is minting new one-day millionaires: oil tankers brave enough to sail across the Strait of Hormuz
- Bloomberg.com — World Running Short of Supertankers Threatens Long-Haul Oil Flow
- USNI News — Hormuz Transits Hit Three-week High, VLCC Rates Explode
- WSJ — A Shortage of Oil Tankers Is Threatening to Keep Gas Prices High
- timesofindia.indiatimes.com — US-Iran War Live Updates: US tells citizens to leave Iran immediately, warns of travel disruptions
- Bloomberg.com — The Next Inflation Shock: $1 Million-a-Day Oil Tankers
- Bloomberg.com — Trafigura Sees Mideast Oil-Tanker Buying Spree Prolonging Boom
- wsj.com — Tanker Shortage Sends Oil-Shipping Rates Soaring
- qz.com — A global supertanker shortage is sending oil shipping rates soaring to records
- jen.jiji.com — William Shatner at 95 surprises everyone, the legendary Captain Kirk debuts in metal
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