As the Iran war deepens turmoil in the global energy market, the supertanker operating strategy of Korea shipping corporations Sinokor Merchant Marine (Sinokor) is drawing attention in the world shipping market.
On the 15th, Bloomberg said Sinokor had expanded its market clout by buying or chartering very large crude carriers (VLCCs) for weeks before the war began. As of the end of last month, the company was said to be operating about 150 supertankers (giant oil tankers).
On Jan. 29, Sinokor moved at least six empty VLCCs to the Persian Gulf and had them wait for cargo. About a month later, on the 28th of last month, when the Strait of Hormuz was sealed off by U.S. and Israeli airstrikes on Iran, global oil companies, which needed additional storage space, came calling.
With charter rates surging due to the closure of the Strait of Hormuz by Iran, Sinokor is lending ships to oil companies at $500,000 a day (about 750 million won), roughly 10 times last year's price. The oil companies are reportedly using Sinokor's tankers as floating storage.
Sinokor bought ships in January at an average of about $88 million, and Bloomberg said that if contracts around $500,000 a day continue, it could recoup the purchase price in less than six months.
Crude shipping rates have also risen sharply. Sinokor is said to be asking about $20 per barrel to transport oil from the Middle East to China. That is far higher than last year's average ($2.50 per barrel).
Starting as a container shipping company founded in 1989, Sinokor is led by Chair Jeong Tae-sun, a former head of the Korea Shipowners' Association. The strategy to secure a large number of tankers is said to have been spearheaded by Jeong's son, Sinokor Director Jeong Ga-hyeon.
Bloomberg noted, "As the Iran war sows confusion in the global energy market, the revenue of a reclusive Korean business tycoon is surging," adding, "There is a strong chance the person will emerge as one of the biggest winners from this turmoil."