Hormuz Tanker Captains Earn $150,000 a Month as Iranian Attacks Drive Freight to $1.3 Million a Day
Updated
Updated · Fortune · Oct 10
Hormuz Tanker Captains Earn $150,000 a Month as Iranian Attacks Drive Freight to $1.3 Million a Day
3 articles · Updated · Fortune · Oct 10
Summary
$150,000 a month is now available to some tanker captains crossing the Strait of Hormuz—$100,000 in pay plus a $50,000 per-trip bonus—as shipowners use hazard money to keep crews on Gulf routes.
Iran’s stepped-up drone and missile strikes on commercial shipping have made that premium necessary even as oil flows recover, with shuttle runs and ship-to-ship transfers helping move cargoes despite reduced traffic.
93 ships have been hit and 24 sailors killed since the war began on Feb. 28, while war-risk insurance now costs 6%-10% of a vessel’s value—up to $20 million for a supertanker.
Freight rates through Hormuz have surged to a record $1.3 million per day from $20,000-$50,000 last year, contributing to a global tanker shortage and squeezing refining margins such as Repsol’s drop to $15 a barrel in October.
Analysts warn costs could climb further if Iran, still able to strike regional energy infrastructure, escalates again after failing to regain leverage over the oil chokepoint.