Amid heightened security concerns over shipping routes in the Strait of Hormuz, Gulf oil-producing nations are actively reshuffling their crude transport tactics. These measures involve either establishing or expanding their own tanker fleets, as well as adjusting transshipment methods, which has consequently driven up both tanker sale prices and charter rates, significantly reshaping the shipping market landscape.
According to data from shipbroker Braemar cited by the Financial Times, the price of new and relatively new second-hand vessels in the largest tanker class has surpassed $130 million in the last quarter, hitting a peak not seen since 2008. Concurrently, one-year charter rates for Very Large Crude Carriers have also escalated to record highs. A business leader at Braemar noted that securing actual control over transport assets has become a key priority for Middle Eastern crude exporters.
In a notable move, Abu Dhabi National Oil Company has invested $1.3 billion this month to acquire six VLCCs and five large liquefied gas carriers, which have been swiftly put into operation. The firm also intends to continue large-scale purchases of second-hand tankers to boost its shipping capacity. Meanwhile, Bahri, Saudi Arabia's national shipping company, declared earlier this month that its fleet has reached a record size of 107 vessels, with market analysts suggesting there may be further demand for vessel acquisitions from the kingdom.
Moreover, Gulf producers are also pioneering alternative transport solutions. Both Abu Dhabi National Oil Company and Kuwait Petroleum Corporation have implemented a segmental transshipment model. Under this system, after tankers depart the Strait of Hormuz, crude is transferred to other vessels on the outer side of the strait, which then continue the journey to the final destination.
Comments