VLCC Rates Surge Past $980,000 Per Day on September 13 as Hormuz Closure and Tanker Attacks Drive Freight Costs to Unprecedented Levels

Supertanker freight rates surged to unprecedented highs, with the Baltic Exchange's Middle East route topping $982,072 per day on September 13, amid escalating conflict in the region, a wave of tanker attacks, and tightened Hormuz Strait traffic following US and Iranian military clashes, according to Lloyd's List and Time News. Other shipping institutions put the daily cost even higher, with Clarksons Securities reporting that earnings on the benchmark Middle East route breached the $1 million-per-day mark. The TD3C index tracking the Middle East Gulf to China route hit $982,072 per day on Friday, marking a doubling of rates over the course of a single month. Freight analysis from data intelligence firm Kpler suggests daily earnings for VLCCs will stay above $100,000 a day into next year, more than double historic levels that rarely went above $45,000. Two-year leasing rates for VLCCs could rise by 20 to 30 percent, according to a Morgan Stanley note published on September 10. The surge in VLCC rates reflects the compounding effect of multiple supply chain disruptions hitting simultaneously. The effective closure of the Strait of Hormuz has forced tankers onto longer alternative routes, tying up vessels for extended periods and reducing available tonnage. Attacks on tankers in and around Hormuz and the Red Sea have further constrained the fleet willing to operate in the region, while those that do face sharply higher war-risk insurance premiums. Saudi Arabia's East-West pipeline, which provided a partial bypass for Hormuz traffic, remains offline following drone attacks, eliminating another alternative route and pushing more demand onto the limited tanker fleet. The result is a structural tightening in VLCC availability that analysts expect to persist well into 2027, with rates staying elevated even if diplomatic efforts eventually reopen Hormuz, given the time required to reposition vessels and restore normal routing patterns.