China’s VLCCs Reroute: $110,000 Daily Profit as Hormuz Shuts

China’s two largest state-owned oil shipping firms have halted tanker traffic through two critical Middle Eastern chokepoints amid escalating regional tensions. COSCO Shipping Energy Transportation and China Merchants Energy Shipping (CMES) have avoided the Strait of Hormuz and the Bab al-Mandab since late July, opting instead for alternative routes and transfer methods. The decision, coordinated with Chinese central authorities, affects a significant portion of the country’s oil transport capacity. Together, the companies operate over 100 very large crude carriers (VLCCs), each capable of carrying approximately 2 million barrels of oil.…

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