Tanker routes hit million-dollar milestone

Oil tankers crossing the Strait of Hormuz to China now command $1.035 million per day, the first time shipping costs exceeded seven figures. That's nearly five times the $208,000 rate before the conflict.

“It's all about risk.”

Attacks drive up insurance premiums

Insurance costs for vessels have jumped from 0.5% to 1% of cargo value up to 10%, as tit-for-tat strikes between the U.S. and Iran target commercial ships in the region. Two tankers were hit by projectiles on Friday alone.

Fewer ships willing to cross

Commercial traffic through the Strait has dwindled as fewer freighters brave the eastern side where disruptions are heaviest. Shipping companies are consolidating and buying more vessels to guarantee their own cargo deliveries.

Refineries and consumers pay the price

Refineries face squeezed margins from both higher shipping costs and crude prices above $100 per barrel. Diesel prices have topped $6 for the first time, up 60% since the war began.

Shipping industry records windfall profits

Shipbroker Clarksons posted record earnings last quarter with 55% year-over-year operating profit growth. The Breakwave Tanker Shipping ETF is up 3,600% year to date, signaling investor confidence in maritime profitability.