Hormuz danger pay turns tanker crews into high-risk earners
Tanker captains can earn $100,000 a month plus a $50,000 bonus per trip through the Strait of Hormuz, according to sources cited by the Financial Times. Sailors can make four to six times their normal pay for the risky voyages, while shipowners also face war-risk insurance costs of up to $20 million for a supertanker. The high pay reflects continued attacks on shipping in the Gulf, where at least 93 vessels have been hit and 24 sailors killed since the Iran war began.
Tanker crews transiting Hormuz can receive monthly pay around $100,000 for captains, with an extra $50,000 per voyage, versus roughly $15,000 normally. Sailors, usually earning as little as $1,500 monthly, may see four to six times their usual wages. Double pay also applies in the southern Red Sea and Gulf of Oman. Since Feb. 28, the International Maritime Organization reports at least 93 vessels struck and 24 sailors killed.
Shipowners also pay for coverage against wartime hazards, costing 6%-10% of a vessel's value, or as much as $20 million for a supertanker. Daily freight charges for Hormuz crossings hit $1.3 million, versus $20,000-$50,000 a year earlier, adding to a worldwide scarcity of tankers and elevated costs globally.
The lure of danger pay may push some seafarers into prolonged exposure to attack, which could affect crews and their families. Higher wartime insurance and record freight costs could feed into fuel and other shipped goods prices, while refiners may see thinner margins. A sustained tanker shortage may also reroute trade and raise costs for importers and consumers far from Hormuz.