Bahri, the national shipping carrier of the world’s top crude exporter, Saudi Arabia, has provisionally chartered at least five supertankers to ship oil to Asia amid soaring tanker rates not seen in six years.
Bahri has hired at least five very large crude carriers (VLCCs), the supertankers capable of shipping 2 million barrels of crude each, as daily rates on the key Middle East-to-China route surged above $200,000 for the first time since 2020, Bloomberg reports.
The freshly chartered supertankers are expected to ship Saudi crude to Asia in the coming weeks, according to fixtures and schedules Bloomberg has seen.
Additional hiring from the Saudi national shipping company suggests that the Kingdom is boosting supply to Asia and potentially looking to lock in daily rates ahead of further freight rate increases.
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Near-term demand for Saudi Arabia’s oil in China is soaring after the Kingdom early this month slashed its official selling prices (OSPs) for Asia to the lowest level versus regional benchmarks in more than five years.
As a result, oil loadings from Saudi Arabia to China in March are estimated at about 56-57 million barrels, up from 48 million barrels loading in February, anonymous traders with knowledge of the orders told Bloomberg earlier this month.
Moreover, supertanker rates are going through the roof, hitting a six-year high, as Middle Eastern supply to India soars and traders rush shipments to precede a potential U.S. military campaign in Iran.
The heightened geopolitical tensions could also boost the war premiums that shippers and insurers will ask, according to analysts.
The rally in the VLCC freight rates began at the end of 2025 on the back of growing oil supply, longer voyages, and disruptions due to sanctions and altered shipping lanes.
Following a brief respite in January, the tanker rates have rebounded this month to the highest since 2020 as the market became aware of a major vessel buying spree from South Korea’s Sinokor shipping group, which is now estimated to control about a fourth of all available non-sanctioned tankers.
By Charles Kennedy for Oilprice.com
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