Persian Gulf oil shipment detours cost up to $40 million each
Oil transport in the Persian Gulf just got a lot pricier and more dangerous.
With ongoing conflict in the region, oil companies are now using huge tankers to shuttle oil outside the Strait of Hormuz, trying to avoid attacks.
Each trip costs up to $40 million, but leaving the oil stranded is still economically worse than taking on the freight cost and selling oil at thinner margins.
Sailors offered up to $25,000 roundtrip
To keep things moving, sailors are being offered up to $25,000 per round trip, sometimes more than oilers and cadets would earn in a whole year back home.
Many from India, the Philippines, and China are signing up despite recent attacks on ships near the Strait.
Meanwhile, shipowners are making bigger profits by taking on these risks and keeping oil flowing worldwide.