Rent, freight and risks: who makes money by closing the Strait of Hormuz. Details

The blocking of the Strait of Hormuz, one of the main sea corridors for the transportation of oil and gas, forced the Persian Gulf countries to limit hydrocarbon production due to a shortage of storage facilities and inflated global fuel prices. But some companies took the opportunity to capitalize on the risks. Who benefited from the closure of the Strait of Hormuz — in the Izvestia article.

Tanker rental

• Due to the blockade of the Strait of Hormuz, the owner of the Sinokor group, South Korean tycoon Ga-hyun Chong, increased his profit significantly. A few months before the outbreak of the conflict caused by the US and Israeli attacks on Iran, Sinokor increased its purchases of ships, with a large number of large crude oil tankers purchased in the last weeks before the war. This allowed the company to take a dominant position in the market and dictate its prices for ship rentals.

• The emergence of a new major player has driven up supertanker rental rates to record levels, and senders have begun booking ships in a panic amid rumors about the scale of the deal and press reports that Swiss billionaire Gianluigi Aponte, whose Mediterranean Shipping Company (MSC) controls 20% of shipping container traffic, could be behind it. in the world. The excitement occurred at a time when more and more tankers were sanctioned or used as storage facilities, which caused the ship rental market to shrink.

The shutdown of shipping in the Strait of Hormuz has hit the entire world. And here's why

• By the end of February, Sinokor controlled 150 supertankers, which is almost 40% of the total tanker fleet that is not under sanctions. In February, the company placed six empty supertankers in the Persian Gulf near Dubai, which became in demand after the closure of the Strait of Hormuz, as the companies were running out of capacity to store crude oil.

• After the conflict began, Sinokor increased supertanker freight rates (VLCC) to $20 dollars per barrel for transporting oil from the Persian Gulf to China, while the average last year's rate was $2.5. Supertankers in the Persian Gulf, which are used as storage facilities, bring companies $500,000 a day during the conflict. Considering that in January Sinokor acquired a supertanker at a price of about $88 million, while maintaining this rental price, they will pay off in less than six months.

Navigation in the conflict zone

• Some Greek maritime cargo operators pass through the Strait of Hormuz, ignoring the danger, while most companies have suspended transportation in the conflict zone. The freight of a supertanker for transporting oil from the strait to China has grown to $500,000 per day, not counting the cost of insurance against military risks. These prices allow carriers to earn millions on each flight, even when accounting for insurance costs and doubling crew salaries.

Eastern translation: is the United States able to assemble a coalition to control the Strait of Hormuz

And how the escalation of the conflict in the region is delaying negotiations on a Ukrainian settlement

• Despite the active phase of the conflict, several shipping companies operate flights across the strait, including Dynacom by Greek billionaire George Prokopiou and Aeolos Management, owned by the Embirikos family. Dynacom Tankers has already made five such flights since the beginning of the conflict. Prokopiu owns three shipping companies, which have 150 vessels at their disposal. He is considered an iconic figure in the "premium" business, that is, in legal transportation involving high risks.

Insurance against military risks

• Insurance prices for ships increased 12—fold on March 4, from 0.25% to 3% of the ship's value. Prior to that, insurers notified suppliers that the policies they had already issued would be cancelled due to risks, and some even refused to insure ships during the conflict. There was no official news about the strait being blocked, but radio messages advised ships to stay away from the strait.

• The risk premium depends on which country the vessel is chartered to. If the usual cost of insurance from March 4 was 1 to 1.5% of the cost of the vessel, then for tankers associated with the United States, Great Britain and Israel, insurance costs three times more expensive. The United States has promised to provide naval escorts for merchant vessels, but it is not yet known when and how this promise will be fulfilled.