Did They Know in January? Korean Shipping Giant Sinokor Hits $500,000-a-Day Jackpot as War Erupts

Sinokor Secured Large Number of VLCCs Before the War
Demand for Offshore Crude Oil Storage Soars Amid Hormuz Blockade
Daily Charter Rates Hit $500,000; Shipping Fees Surge Eightfold

As the global crude oil transportation network has come to a standstill due to the war in Iran, it has been reported that Korean shipping company Janggeum Jangseon (official English name: SINOKOR) is generating significant operating profits by utilizing its oil tankers.

Screenshot of Janggeum Jangseon homepage

On March 14 (local time), Bloomberg reported that Janggeum Jangseon's very large crude carriers (VLCCs) have recently experienced an unprecedented boom, effectively serving as "floating storage" facilities in Middle Eastern waters. The report explained that, as a result of the war, onshore storage facilities have reached capacity, prompting global oil companies to temporarily store crude oil on tankers.

Earlier, at the end of January this year, Janggeum Jangseon moved at least six empty oil tankers to the Persian Gulf and kept them on standby. Bloomberg noted that it remains unclear whether this was simply a measure to secure clients or a strategic deployment in anticipation of escalating tensions in the Middle East.

Subsequently, with military conflict surrounding Iran effectively blocking crude oil transport through the Strait of Hormuz, the situation changed dramatically. Global oil companies, unable to find available storage space, began using these ships as temporary offshore storage facilities, leading to a surge in demand for oil tankers.

In fact, it is reported that many of the empty tankers that had been waiting in the Persian Gulf are now loaded with crude oil. The charter rate for such vessels is said to reach approximately $500,000 per day (about KRW 750 million). Bloomberg predicted that as long as the war continues, Janggeum Jangseon will be able to maintain these levels of profit.

Crude oil shipping rates have also soared. It is reported that Janggeum Jangseon is charging about $20 per barrel to transport oil from the Middle East to China, which is about eight times the average shipping rate last year (approximately $2.50 per barrel).

Bloomberg noted that Janggeum Jangseon secured these VLCCs for an average price of about $88 million per vessel in January this year, analyzing that if the current daily charter rate of $500,000 is maintained, the company could recoup the cost of purchasing the vessels in less than six months.

In recent years, Janggeum Jangseon has reportedly expanded its market influence through bold "bets," consistently purchasing or chartering oil tankers. As of the end of last month, the company is estimated to control about 150 VLCCs, which, according to Bloomberg, accounts for nearly 40% of the world’s very large crude carriers that can operate without restrictions such as sanctions.

Founded in 1989, Janggeum Jangseon initially focused on container shipping. Although it ranked 32nd (with total assets of KRW 19.49 trillion) by the Fair Trade Commission's 2025 designation of large business groups, it has not been widely recognized by the general public due to the nature of its business.

Bloomberg commented, "While the war in Iran is causing turmoil in the global energy market, the profits of a reclusive Korean business tycoon are surging," and assessed, "Janggeum Jangseon has emerged as a key beneficiary amid this chaos."

This content was produced with the assistance of AI translation services.