Maria Angelikoussi: One trip, 25 million dollars – The crisis is changing the VLCC market

VLCC freight rates have already climbed to their highest levels since March, with geopolitical turmoil now acting as a catalyst for the entire crude oil transportation chain. Hormuz is at the epicenter. The dramatic decline in trade through the Straits and uncertainty around Gulf exports are forcing buyers and traders to reconsider where and how they will secure their cargoes. The more oil is sought outside the traditional Persian Gulf route, the greater the importance of the Atlantic.

And that is where the equation changes for shipowners.

A VLCC that undertakes a longer voyage remains booked for more days. This means that it returns to the spot market later, limiting the number of ships available. When the same process is repeated on a larger scale, the supply of capacity tightens and freight rates gain additional momentum.

At the same time, tonne-miles, one of the most important indicators of real demand in shipping, are increasing. It is not only how much oil is transported, but also how far it has to travel.

This momentum seems to particularly favor large Greek tanker owners. In addition to the Angelicoussis Group, VLCC interests of the Onassis Group have also secured strong chartering for cargo from West Africa, reinforcing the image that Greek fleets are at the forefront of the rise.

For the Angelikousis group, the fixture of around $25 million takes on even greater weight due to the size and international presence of its fleet. In times of sharp upheavals in trade flows, large fleets have the ability to position ships in different markets and capitalize more quickly on opportunities that arise.

The big picture, however, goes beyond an impressive charter. The crisis in the Middle East shipping lanes is starting to redraw the oil transport map. If more barrels have to travel longer distances to reach buyers, the actual supply of VLCCs will be even more limited.

And then the $25 million for a voyage may not be the exception of an extreme market, but the first strong indication of the new balance that is taking shape in large tankers.