South Korea's SinoCo expands fleet amid Hormuz disruption driving surging oil shipping rates
Amid ongoing military strikes by the United States and Israel on Iran, Tehran’s actions have effectively blocked the Hormuz Strait, the world’s busiest sea lane for oil. Bloomberg News reported that SinoCo, the South Korean shipping firm formerly known as Janggeum Shipping, operates six oil tankers in the Hormuz region—the most of any single operator there.
The disruption has turned into a windfall for SinoCo, with daily charter rates for oil storage surging to about $500,000, roughly ten times the level a year ago. The company has been able to command these extraordinary rates as crude shipments through Hormuz become constrained.
SinoCo has been active in acquiring used tankers from Europe, acquiring at least 50 such vessels in recent months. Two of the six SinoCo ships trapped in the Gulf were among those bought as part of this aggressive expansion. The push has elevated SinoCo into the top tier of VLCC owners, rising from 12th place to among the top three.
Founded in 1989, SinoCo began as a container carrier and helped open Korea–China container routes. After decades of conservative management, it shifted in 2024 toward aggressive tanker acquisitions. By late February, the company was estimated to own about 150 ultra-large crude carriers, representing nearly 40% of the global tanker fleet when excluding ships under sanctions or out of service.
The market impact is stark: average daily rates for ultra-large crude carriers have climbed above $100,000, the highest since 1988, underscoring how geopolitical shocks can dramatically reshape shipping economics and oil pricing.
SinoCo said it would implement emergency freight-rate increases around the Hormuz region starting on the 18th in response to the unstable security situation and rising international oil prices.
For U.S. readers, the episode matters because Hormuz channels a large share of global crude flows. Prolonged disruption there can push crude prices higher, affecting energy costs, inflation, and policy decisions in the United States. The development also illustrates how a single Asian carrier’s rapid fleet expansion can influence global shipping markets and supply chains during geopolitical crises.