Oil tanker shortage worsens as Suezmax earnings surge above $680,000

Maritime research firm SSY stated that inflation-adjusted tanker freight rates have reached their highest levels since the emergence of the first supertankers in the 1960s, amid an acute shortage of vessel supply.

Daily earnings for Suezmax tankers surpassed $680,000, roughly five times their level at the beginning of the month, according to Bloomberg as reported by gCaptain.

Shipments through the Strait of Hormuz have returned to about 80% of pre-war volumes, but shuttle operations add around a week to each trip and tie up tanker capacity, exacerbating the shortage.

This surge shows that the tightness in the tanker market is deepening day by day, as longer voyages and passage restrictions reduce the number of available ships for charter and push up costs for the global oil trade.

What do these terms mean?

Suezmax: A medium-sized class of crude oil tankers capable of carrying around one million barrels and passing through the Suez Canal fully laden.

Strait of Hormuz: A narrow waterway connecting the Persian Gulf to the Gulf of Oman, through which a significant portion of global oil exports passes.

Shuttle transport: Frequent short trips between two points to transfer cargo in batches, consuming more time than a direct voyage.

Inflation adjustment: Recalculating prices to compare them in real terms over time, rather than relying solely on nominal figures.