Strait of Hormuz closure sends oil storage demand—and supertanker profits—soaring
The closure of the Strait of Hormuz has triggered a surge in demand for oil storage, benefiting shipping firms with available supertankers. Among them, South Korean tycoon Ga-Hyun Chung's company, Sinokor Merchant Marine, has capitalised on the crisis by leasing vessels at record-high rates. The narrow waterway, vital for global energy trade, now sits at the centre of a geopolitical standoff.
Before tensions escalated, Ga-Hyun Chung's Sinokor Merchant Marine had already repositioned six supertankers to the Persian Gulf. The move proved strategic when Iran's new Supreme Leader, Mojtaba Khamenei, announced the Strait of Hormuz would remain closed. The blockade, part of Iran's confrontation with the US and Israel, disrupted roughly 20% of the world's oil, refined products, and liquefied natural gas shipments.
With trade routes severed, demand for floating storage skyrocketed. Sinokor began leasing its vessels at $500,000 per day—a tenfold jump from last year's rates. By late February, Chung controlled around 150 supertankers, cementing Sinokor's position as one of the largest tanker fleets globally.
The crisis has not affected all aspects of the shipping market equally. While charter prices for storage have soared, broader data on global fleet development or demand for supertanker services remains scarce.
Sinokor's early repositioning of supertankers has allowed it to dominate the storage market during the Strait of Hormuz closure. The company's daily lease rates now stand at half a million dollars, reflecting the extreme pressure on energy logistics. For now, the blockade continues to reshape trade flows and shipping economics in the region.
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