AI Image
Ship captains and crews crossing Hormuz earn so much they're 'almost being viewed as mercenaries'
Fortune • • business
Key Points:
- Despite ongoing Iranian attacks, oil tankers continue to transit the Strait of Hormuz with U.S. military protection and alternative pipelines, maintaining Persian Gulf oil flows at prewar levels.
- Iran has increased drone and missile strikes on vessels, including outside Hormuz, causing some traffic dips but not stopping shuttle runs that transfer oil cargoes ship-to-ship for delivery.
- Tanker captains earn up to $100,000 monthly plus $50,000 per trip for Hormuz transits, a significant increase from their usual $15,000 salary, while sailors see pay boosts of four to six times their normal wages due to danger premiums.
- War risk insurance and hazard pay have driven shipping costs to record highs, with freight rates through Hormuz reaching $1.3 million per day and contributing to a global tanker shortage and soaring freight rates worldwide.
- Analysts warn that escalating conflict could further disrupt oil infrastructure and trade, potentially forcing refiners to cut crude processing as rising freight costs squeeze profit margins.
