Energy Lifeline Crisis in the Strait of Hormuz: Surge in Charter Ship Demand by Global Oil Companies - South Korean Media: The Second Onassis

In 1953, Greek shipping magnate Onassis built the largest ship in the world at that time, the 45,000-ton "Tina Onassis" oil tanker. Its carrying capacity was three times that of the T2 oil tankers (16,500 tons), hence the name "super tanker." Today, VLCCs (Very Large Crude Carriers) of 300,000 tons are considered "super tankers."

¬ The problem is that this ship is too large and heavy to pass through the Suez Canal, as the canal's depth is insufficient to support it. Eventually, the ship had to choose a long route around the Cape of Good Hope at the southern tip of Africa. From the Middle East to London, the journey via the Suez Canal takes 20 days, while circumnavigating the Cape of Good Hope takes 35 days. Everyone thought it was a crazy move, but Onassis kept ordering even larger oil tankers. Because he believed, "Post-war reconstruction of oil is indispensable, and ships will be in short supply."

¬ In 1956, Egyptian President Nasser announced the nationalization of the Suez Canal, and his bet led to a dramatic reversal. After Britain and France lost the right to operate the canal, they launched an attack, triggering the Second Arab-Israeli War. The Suez Canal remained closed for five months. Shipping rates skyrocketed tenfold, and Onassis, who monopolized the Cape of Good Hope route, made a fortune.

¬ According to foreign media reports, Iran's blockade of the Strait of Hormuz has made South Korea's third-largest shipping company, Jangjin Shipping, one of the "big winners." At the beginning of January, Jangjin Shipping had at least six ultra-large oil tankers available heading to the Persian Gulf. Due to the war in Iran, the Strait of Hormuz was blocked, and oil companies, unable to export crude oil, were renting empty oil tankers as storage space. The daily rental fee was $500,000, which increased tenfold within a year. If this price could be maintained for six months, it would cover the cost of buying the ship. Although we don't know whether the chairman of Jangjin Shipping, Jeong Tae-jun, predicted the Iran war, the sudden surge in demand for chartered ships from global oil companies has earned him the nickname "the Second Onassis," making him a news hot topic.

¬ Forecasting is both science and luck. In the late 1990s, Wall Street traders predicted the collapse of the internet bubble and short-sold stocks, but suffered heavy losses. In fact, the internet bubble burst in 2000, after they had sold their shares. Scientific forecasting may be accurate, but if the timing is wrong. When Onassis heard the news of the Suez Canal being blocked, his first words were "a gift from God." As the saying goes, "do your best and leave the rest to fate," which seems appropriate here.

Source: Chosun Ilbo

Original: toutiao.com/article/1859884466691083/

Statement: This article represents the views of the author.