Vitol, a major trader and shipowner, is aggressively securing Very Large Crude Carriers (VLCCs) on 12-month time charters at high rates as of May 2026.
This strategy acts as a hedge against potential spot rate spikes if the blocked Strait of Hormuz reopens, which is expected to trigger a rush to restock oil inventories.Vitol’s Actions: Vitol has been moving for vessels from owners like Frontline and Sinokor, taking advantage of high-term rates.The Strait of Hormuz has been effectively closed to most traffic since late February 2026, forcing tankers to take longer routes (e.g., around the Cape of Good Hope) and tightening effective supply, say Lloyd’s List.While some believe a reopening will trigger a supply shock and force rates higher (due to a restocking rush), others argue it might initially soften rates.Global inventories (excluding the Middle East) saw significant drawdowns of 205 million barrels in March 2026.
Despite the volatility, VLCC rates have been holding firm, with some rates reported between (\$80,000) and (\$120,000) per day.
Note by Alessandro Bazzoni