Supertanker chartered from US Gulf Coast to China for $76 million

A supertanker was chartered to sail from the U.S. Gulf Coast to China for $76 million, according to CNBC, which cited a source familiar with the matter. The vessel, the Alexandros, was chartered by the trading firm Trafigura, the source said. It is expected to load around 19 November.

The rate is about ten times the normal pre-war level for the route, according to the source. A normal rate based on pre-war levels would be $7 million to $10 million, the source said. CNBC reported that the $76 million works out to $38 per barrel of oil, assuming the tanker holds 2 million barrels.

Shipping costs have risen globally because of the crisis in the Middle East, CNBC reported. The war in the Persian Gulf has led to a shortage of available tankers, according to the report.

Middle East producers are using a shuttle system to export oil through the Strait of Hormuz, CNBC reported. A loaded tanker crosses the strait and then loads the oil onto another ship in the Gulf of Oman, which carries the cargo to Asia, according to the report. CNBC reported that the system reduces exposure to Iranian attack and has led to a rebound of crude exports through Hormuz, but requires a lot more ships to move the oil out of the Gulf.