Global shippers grappling with disruptions at the Suez and Panama canals are witnessing a substantial spike in chartering costs. Suezmax tankers, crucial for transporting one million barrels of oil, are opting for longer routes around Africa due to security concerns in the Red Sea.
This diversion has led to a significant surge in chartering costs for these large oil tankers. Simultaneously, rates for long-range tankers, capable of moving about 600,000 barrels of oil, have also experienced a notable increase.
Commonly used to transport crude and fuels through the Suez and Panama canals, these tankers, also known as LR-tankers or Panamaxes, have been impacted by diversions resulting from disruptions at the Panama Canal.
Recent attacks by Iran-backed Houthi rebels in the Red Sea have heightened security concerns across the shipping industry, contributing to the increased costs faced by global shippers.