Mar. 13 at 2:18 AM
$FRO Recent conflict and threats in the Strait of Hormuz have driven oil tanker charter rates and insurance premiums to historic, record-breaking highs. As of early March 2026, the cost of chartering a Very Large Crude Carrier (VLCC) has surged to over
$423,000 per day, a nearly 100% increase in less than a week and a more than 460% increase since the start of the year.
Impact on Tanker Charter Rates
The effective shutdown of the waterway due to Iranian attacks and threats has created a massive backlog of tankers, severely disrupting global supply.
VLCC Records: Benchmark freight rates for VLCCs carrying 2 million barrels of oil from the Middle East to China reached an all-time peak of
$423,736 per day on March 2, 2026. By comparison, rates were approximately
$63,000 per day in late December 2025.
