Shares of Ningbo Marine surged by the daily 10% limit in early trading, while Xingtong Shipping and China COSCO Shipping Corporation rose more than 5%. Other maritime firms, including Strait Shipping Nanjing Port, Bohai Ferry , and Phoenix Shipping also saw gains. The rally follows a sharp increase in oil tanker charter rates due to escalating tensions in the Middle East.
Tanker Rates Double After Israeli Strike
According to data from Clarksons Research, the daily charter rate for a Very Large Crude Carrier (VLCC) capable of transporting 2 million barrels of oil from the Gulf to China skyrocketed 47,609 this Wednesday. The near 140% surge reflects heightened risks in the region, prompting shipping companies to demand higher premiums for crude transport.
Geopolitical Risks Drive Market Volatility
The spike in freight costs underscores growing concerns over potential disruptions to Middle Eastern oil shipments. Analysts attribute the surge to rerouting delays, increased insurance costs, and heightened demand for secure vessels. Shipping firms are adjusting routes to avoid conflict zones, further tightening available capacity.
Industry Experts Warn of Prolonged Impact
Market observers suggest the elevated rates could persist if tensions escalate. “The Red Sea and Persian Gulf are critical chokepoints for global oil trade,” said a Shanghai-based shipping analyst. “Any prolonged instability will keep freight costs elevated, directly benefiting tanker operators with available vessels.”
Broader Implications for Energy Markets
The surge in shipping costs adds pressure to global oil prices, already volatile due to supply concerns. While OPEC+ maintains stable output, logistics bottlenecks may temporarily inflate regional crude premiums. Investors are closely monitoring whether the rally in shipping stocks reflects a short-term spike or a sustained trend driven by geopolitical uncertainty.
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