When tanker vessel, Kalamos, leaves Paradip on Tuesday after pumping some 2 million barrels of crude oil into India, it would have likely been been paid the highest rental [charter] rate ever given to any merchant ship in the world. According to Tankers International, a reliable source of maritime information in the public domain, Bharat Petroleum has chartered Kalamos, which docked at Paradip on March 8, for a daily charter rate of $7,70,000 per day.
“This is an insanely high rate. $100,000 and above is a strong rate and we called that a strong market last year,” says Erik Grundt, Senior Analyst, Rystad Energy, an energy intelligence company based in Norway. Bharat Petroleum officials are not confirming this rate.
Three other Very Large Crude Carriers (VLCC) have been chartered at high rates for India.
The charter rate covers only the hire of the vessel. Fuel, port costs, and canal costs are additional. “For a VLCC, this could be another $50,000 a day,” says Mr. Grundt.
With crude oil prices hopping past $100, consumers may wonder if all these additional costs would be transferred to the consumer. “The price of auto fuels at the pump has not typically increased as a kneejerk reaction to global crude prices in the past. At such high rates, demand will compress and the prices will stabilise and/or come down. In case of sustained elevated crude prices, oil marketing companies will take a call on pump prices,” says Prashant Vasisht, Senior Vice President, ICRA, an investor information and ratings agency.
Kalamos loaded up its cargo likely in Yanbu, a Red Sea port of Saudi Arabia, which has been reportedly piping its fuel supplies to its west coast as an alternative to Persian Gulf that has been closed due to the virtual shutdown of Strait of Hormuz. Mr. Grundt was able to confirm four fixtures last week for tankers loading in the Arab Gulf/Red Sea bound for India: the Adamantios, Kalamos, Maran Thaleia, and Tejas.
Kalamos is Greek-owned and is a 16-year-old crude oil carrier. Tankers International says Adamantios has been chartered for a daily rate of $463,000 and Maran Thaleia at nearly $640,000 a day.
In times of crisis, VLCCs of 2 lakh to 3.2 lakh tonnes cargo carrying capacity such as Kalamos are the preferred mode and VLCC charter rates have climbed several times over the last week. India has limited oil tanker capacity of its own, compared to say China, and that means Indian purchases are more exposed to such volatility, energy experts say.
Mr. Grundt says Kalamos has been chartered for some 22 days indicating it will return to Red Sea after India. “The others are likely on a 35-day voyage charter, indicating those vessels may be routed via the Cape of Good Hope — though this is not confirmed,” he adds.
Wary of Houthi attacks, many ships have been going around Africa and avoiding Red Sea.
Published – March 09, 2026 08:13 pm IST
Source: https://www.thehindu.com/business/bharat-petroleum-said-to-charter-crude-tanker-for-77-lakhday-as-war-persists/article70723214.ece
