Hiring US-to-China Oil Tanker Costs More Than Launching a Space Rocket
Chartering a supertanker to transport crude oil from the United States to China now costs approximately $76-$80 million, exceeding the $74 million published price of a standard SpaceX Falcon 9 rocket launch. This surge in oil tanker costs is driven by disruptions around the Strait of Hormuz, which have led to historic highs in global tanker freight rates and threaten the economics of international oil trade.
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- ✓ Chartering a supertanker from the Gulf Coast to China costs $76 million, 10 times higher than pre-war levels.
- ✓ The journey of a US-to-China oil tanker costs about $80 million, compared with $74 million for a standard SpaceX Falcon 9 launch.
- ✓ Ships' captains are paid $100,000 a month to transit the Strait of Hormuz.
- ✓ Soaring freight rates threaten Asia's appetite for US crude.
What changed
The cost of hiring a US-to-China oil tanker has surpassed the cost of launching a SpaceX Falcon 9 rocket, with recent charter prices ranging from $76 million to $80 million.
Live updates
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Hiring US-to-China Oil Tanker Costs More Than Launching a Space Rocket
Chartering a supertanker to transport crude oil from the United States to China now costs approximately $76-$80 million, exceeding the $74 million published price of a standard SpaceX Falcon 9 rocket launch. This surge in oil tanker costs is driven by disruptions around the Strait of Hormuz, which have led to historic highs in global tanker freight rates and threaten the economics of international oil trade.
Why it matters
The increasing costs of oil tankers are largely attributed to the current tensions and attacks in the Strait of Hormuz, a critical passage for global oil shipments. As a result, shipping companies are offering sailors 'crazy money' to transit the area, with captains being paid $100,000 a month. This situation has led to a global oil tanker shortage.
What is confirmed
- Chartering a supertanker from the Gulf Coast to China costs $76 million, 10 times higher than pre-war levels.
- The journey of a US-to-China oil tanker costs about $80 million, compared with $74 million for a standard SpaceX Falcon 9 launch.
- Ships' captains are paid $100,000 a month to transit the Strait of Hormuz.
- Soaring freight rates threaten Asia's appetite for US crude.
Still unconfirmed
- At least 10 supertankers approaching Port of Fujairah have reversed course amid Iran's attacks.
What to watch next
- Further developments in the Strait of Hormuz
- Changes in global oil tanker freight rates
- Impact on international oil trade
confidence 85%Sources used for this update (21)
- Financial Times — Ships’ captains paid $100,000 a month to transit Strait of Hormuz
- www.ttnews.com — U.S.-to-China oil tanker costs more than launching a rocket
- gcaptain.com — Global Oil Tanker Shortage is Getting Worse By the Day
- Bloomberg.com — Hiring US-to-China Oil Tanker Costs More Than Launching a Space Rocket
- CNBC — Supertanker chartered from Gulf Coast to China for $76 million, 10 times higher than pre-war level
- Reuters — Soaring freight rates threaten Asia's appetite for US crude
- Al Jazeera — The Hormuz bonus: Sailor salaries soar for transits amid Iran war
- Fortune — Ship captains and crews crossing Hormuz earn so much they're 'almost being viewed as mercenaries'
- gCaptain — Global Oil Tanker Shortage is Getting Worse By the Day
- ABC News & Headlines – Australian Broadcasting Corporation — Shipping companies offering sailors 'crazy money' to transit Strait of Hormuz
- Haaretz — Shipping an Oil Tanker Now Costs More Than Launching a SpaceX Rocket
- sonar21.com — The Other Hormuz Shocks: LNG and Helium. Economic effects of the Persian Gulf cutoff, from first-order to....
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