Supertanker Charter From Gulf Coast to China Hits $76 Million

A supertanker charter from the U.S. Gulf Coast to China has reached $76 million, roughly 10 times the route’s pre-war level as the Persian Gulf war tightens the supply of available ships.

The Alexandros was chartered by trading firm Trafigura and is expected to load around Nov. 19. The vessel’s $76 million voyage cost works out to about $38 per barrel if it carries 2 million barrels of oil.

Before the war, a comparable trip typically cost between $7 million and $10 million. The surge adds to pressure across energy markets by raising the cost of moving U.S. crude to Asian buyers.

Middle Eastern producers are using a shuttle system in which one loaded tanker crosses the Strait of Hormuz before transferring its cargo to another vessel in the Gulf of Oman for delivery to Asia. The system limits exposure to Iranian attack and has helped crude exports through Hormuz recover, but it also requires more ships to transport the oil.

The Alexandros is expected to load Nov. 19.