Million Barrel Suezmax Rates Surge as Hormuz Crisis Reshapes Tanker Trade

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Suezmax tanker earnings are surging as disruption around the Strait of Hormuz forces oil traders to rethink vessel size, routing and loading strategies, creating some of the strongest returns seen for one million barrel ships in years.

The latest spike comes as tanker availability tightens across the crude market. Traffic through Hormuz remains sharply below prewar levels, while longer voyages, security concerns and ship to ship transfers are absorbing vessel capacity that would normally be available for conventional trades.

For Suezmax owners, the disruption has produced unusually strong economics. Nordic American Tankers said on September 15 that recent fixtures included estimated earnings of about $183,000 per day for a 31 day voyage and $200,000 per day for a 60 day voyage. The company said operating costs were below $10,000 per vessel per day.

Suezmaxes typically carry around one million barrels of crude, roughly half the cargo of a VLCC. That smaller parcel size can provide charterers with greater flexibility when conventional loading patterns are disrupted and cargoes must be repositioned through alternative terminals or ship to ship operations.

TradeWinds reported on Monday that Suezmaxes were undercutting VLCCs in what brokers described as an extraordinary tanker market, with Nordic American Tankers among owners benefiting from the sharp increase in spot earnings.

The strength extends well beyond Suezmaxes. VLCC spot rates have risen above $500,000 per day in some markets, compared with about $132,000 in February, as the conflict reduces effective fleet capacity and pushes crude onto longer routes. More than 217 VLCCs have been ordered during 2026, representing more than $20 billion of investment, according to Reuters.

The underlying problem is increasingly one of logistics rather than simply oil availability.

Only 17 commodity vessels crossed Hormuz over the weekend, Reuters reported, compared with 37 during the previous weekend and a prewar average of around 125 vessels per day. Some tanker movements are difficult to track because vessels have switched off their automatic identification systems.

Oil producers are also increasingly using shuttle tankers and offshore transfers. Crude can be carried from Gulf loading terminals through Hormuz before being transferred off Oman to larger vessels for onward voyages, particularly to Asia.

That system has helped restore exports through Hormuz to around 6.5 million barrels per day, but at a substantial cost. Reuters estimated freight at more than $30 per barrel in some movements, accounting for more than a quarter of the crude’s total value.

Saudi Arabia is adding further pressure to tanker demand. Saudi Aramco is expected to move about 60 million barrels from Ras Tanura during September and October using ship to ship transfers near Oman as it compensates for reduced Red Sea shipments.

For charterers, refiners and commodity traders, the result is a tanker market in which vessel positioning, security exposure and availability can matter almost as much as crude prices themselves.

The immediate direction will remain closely tied to Hormuz traffic and the duration of Middle East disruption. For now, the shortage of readily available tonnage is keeping both Suezmax and VLCC markets at historically elevated levels.