Oil shipments through the Strait of Hormuz have rebounded despite Iranian attacks, largely due to South Korean shipping company Sinokor. According to Lloyd's List Intelligence, Sinokor has accounted for about half of tanker transits through the strait since September. This concentration of oil in one company's hands adds to already high shipment costs.
Sinokor's rapid growth, led by Chairman Chung Tae-soon and his son Ga-hyun, saw its fleet of very large crude carriers jump from 42 in December to 129. The company's rise was timed with a buying spree before U.S. and Israeli attacks on Iran in February. While many tankers remain tied up in the strait, Sinokor, along with government-controlled UAE, Saudi, and Kuwaiti firms, has returned to operations.
Sinokor utilizes ship-to-ship transfers in the Gulf of Oman. Despite efforts to restore flow, oil prices remain high due to strong demand and fears of further conflict. Analysts warn that the concentration of tankers among fewer players will have long-term implications for freight rates, marking a significant shift in global oil logistics.
Source: New York Times Business · Summarized by HeadlinesBriefing