As the drumbeat of war in the Middle East grows louder after U.S. and Israeli strikes on Iran and shipping lanes in the Strait of Hormuz are cut off, a Greek billionaire raking in massive revenue by sending in oil tankers despite the danger is drawing attention.
British newspaper the Financial Times (FT) and other foreign media reported that Dynacom Tankers, owned by Greece's shipping tycoon George Prokopiou, 79, sent at least five tankers through the Strait of Hormuz over the weekend even after Iran's missile attacks. Iran is currently threatening to "burn" ships passing through the strait, and in fact at least nine vessels have been attacked since the hostilities began, leaving three crew members dead. While most shipowners have halted operations, Prokopiou, known in the industry as a "buccaneer" (pirate-style entrepreneur), chose the opposite course.
◇ revenue of 700 million won a day… "The riskier it is, the higher the price"
The reason Prokopiou embarked on a perilous "gamble" is the outsized payoff. According to global commodities outlet Argus, the daily revenue of a very large crude carrier bound for China via the Strait of Hormuz is about $500,000 (about 750 million won). Freight rates have more than doubled due to the risk of war.
To avoid becoming an Iranian target, Prokopiou's ships switched off their transponders and undertook so-called "ghost voyages." He paid exceptional wages to crew members who took on the risk. While crew can refuse to sail, Prokopiou used high compensation as bait to persuade them to put to sea. He also hired armed guards to patrol the decks, FT reported. The Wall Street Journal (WSJ) said, "If Prokopiou's ships had been hit by missiles or drones, they would have sunk as they were."
◇ "If you don't like risk, buy U.S. Government Bonds"
Born in 1946 to a wealthy family in Athens, Greece, Prokopiou is a heavyweight with an asset of about $4.7 billion (about 7 trillion won). Despite being a billionaire, he is known as a "workaholic" who drives an old car himself without security guards and always wears a baseball cap.
This is not the first time he has taken bold steps. After the outbreak of the Russia-Ukraine war, he hauled large volumes of Russian crude and pocketed huge profits. As a result, he was placed on Ukraine's list of "war sponsors." At the time, Prokopiou said, "Sanctions never work," striking a confident tone.
Industry experts describe him as a person who does the most dangerous business within a legal framework. In a 2014 interview, when asked about his management philosophy, Prokopiou answered, "If you're not ready to take risks, don't go into shipping. If you don't like risk, you can buy U.S. Government Bonds." Prokopiou currently operates more than 150 vessels and has placed additional orders for 85 ships at shipyards around the world.