Norwegian shipping company Hunter Group has secured record spot earnings of around $666,000 per day for two chartered-in Very Large Crude Carriers (VLCCs), as extreme Middle East tensions and disruption around the Strait of Hormuz send tanker rates to unprecedented levels.
The geopolitical crisis has sharply reduced vessel traffic through the key chokepoint, forcing tankers onto longer routes and creating a severe shortage of available shipping capacity. Daily traffic has fallen from a recent average of around 15 vessels to just five, according to shipping data.
The surge marks a dramatic turnaround for Hunter Group’s VLCC strategy. In late 2024, its vessels generated average spot earnings of about $34,130 per day, below the company’s estimated breakeven level. By mid-2025, the charter strategy was generating daily losses of roughly $8,350.
By August 2026, however, earnings had exploded to approximately $666,000 per day, turning previously underperforming chartered-in vessels into highly profitable assets.
The tanker market is also facing higher operating and fuel costs, while disruptions to refining capacity have pushed European diesel prices sharply higher. Industry participants warn that elevated freight and energy costs could continue to affect global supply chains for the next 12–24 months.
With tanker capacity increasingly constrained and freight rates at historic levels, shipowners are also becoming reluctant to sell modern vessels—even at attractive secondhand prices—instead choosing to capture exceptionally high charter earnings while the market remains tight.
Note by Alessandro Bazzoni