Elevated tanker rates boost shipping profits amid tight capacity in International Shipping News 05/05/2026 Elevated tanker and freight rates globally are reinforcing profitability across the shipping sector, turning vessel capacity into strong earnings generators amid continued supply constraints, industry players said. Orkim Bhd executive director and chief executive officer Captain Cheah Sin Bi said the current rate environment is supporting earnings strength across tanker operations, while disciplined chartering structures remain key to managing volatility. He said the company mitigates market swings through a diversified chartering strategy spanning time charters, consecutive voyage charters, contracts of affreightment (COA) and spot voyages. This structure provides both earnings visibility and the flexibility to capture upside during market upturns. Cheah said the mixed portfolio of charter contracts shields Orkim from extreme market volatility while allowing the company to benefit from stronger pricing conditions. While cost pressures, particularly fuel and insurance, remain elevated, he noted that contractual safeguards such as bunker adjustment clauses enable the company to pass through fluctuations in global oil prices. Under time charter arrangements, charterers bear 100 per cent of bunker and port costs, while CVC and COA structures incorporate periodic rate adjustments tied to fuel price movements, providing strong cost visibility and margin protection. Similarly, MTT Shipping and Logistics Bhd managing director Ooi Lean Hin said geopolitical tensions around key chokepoints, including the Strait of Hormuz, have increased fuel costs but also strengthened the case for structured surcharge mechanisms across the industry. He said rising fuel costs are mitigated through bunker adjustment factors (BAF), allowing the company to pass on these operational expense increases to customers, similar to emergency bunker surcharges introduced by major global liners. Ooi