Tanker Owners Halt Middle East Voyages as Freight Rates Surge
Tanker owners and charterers are suspending voyages to Gulf oil ports amid escalating tensions between Israel and Iran, citing the increasing risk of spillover into maritime transport. Industry sources confirm that the number of vessels available for immediate charter has dwindled, prompting freight rates on Persian Gulf–to–Asia routes to climb by approximately 20–30 percent in recent days.
According to LSEG shipbroker data, spot rates on the MEG‑Japan route spiked more than 20 percent last Friday and remained elevated at Worldscale 55 on Monday. The Financial Times reports charter rates for very large crude carriers (VLCCs) bound for China surged from approximately $20,000 a day to nearly $48,000—a more than 100 percent increase within a week—while broader tanker indices rose by just over 12 percent.
The sharp freight rate increases stem from a reluctance among shipowners to expose vessels to heightened geopolitical risk, with many awaiting either enhanced insurance premiums or clearer assurances of safety before committing to Gulf voyages. This caution follows recent incidents in the Strait of Hormuz region, including a collision involving a “dark fleet” tanker and Frontline’s Front Eagle, and electronic interference with navigation signals.
The Strait of Hormuz remains open, but international maritime advisories from Greece and the UK urge ships to avoid or closely monitor passage through the Gulf of Aden and southern Red Sea. These warnings have led some owners to reroute vessels or delay sailings.
The surge in freight costs is further driven by speculation that buyers are shifting toward legitimate fleets rather than sanctioned “dark fleet” vessels. This shift has increased demand for insured and compliant tankers, further inflating rates.
In addition, insurance premiums for Middle East oil routes are rising sharply. Analysts warn that if conflict escalates to infrastructure targets, insurance costs could add $3–8 per barrel in freight costs.
Shell’s CEO, Wael Sawan, has cautioned that any closure or interference with the Strait of Hormuz, which channels roughly one-quarter of global oil, could severely disrupt trade. Despite elevated freight rates and logistical challenges, oil flows from the Gulf continue, although with increasing volatility.
Industry forecasters warn that unless geopolitical tensions ease, tanker freight premiums are likely to continue escalating. Charter rates may remain elevated as underwriters and operators demand higher risk coverage, and refiners in Asia could face tighter supply economics due to elevated transport costs.
