Two VLCCs Reroute Around Africa as War-Risk Premiums Soar
Owners of two Very Large Crude Carriers are opting for the longer Cape of Good Hope route rather than pay surging Hormuz transit insurance.
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The signal
Two Very Large Crude Carriers (VLCCs) have rerouted around the Cape of Good Hope rather than transit the Strait of Hormuz, citing surging war-risk insurance premiums.
Why this matters
The Cape route adds roughly 10–14 days to a voyage. When shipowners accept that cost voluntarily, it tells you the insurance market is pricing real disruption risk.
The numbers
War-risk premiums for Hormuz transits are up 38% quarter-over-quarter. For a single VLCC carrying 2 million barrels, that premium can now exceed $1 million per transit.
Bottom line
Watch rerouting activity. A pickup in Cape diversions is an early warning that the market expects Hormuz risk to persist, not resolve.
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