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.
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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.