Tanker Captains Paid $100,000 Per Month to Brave Strait of Hormuz – Oil tanker captains are being offered enormous salaries to sail through the Strait of Hormuz as Iran steps up its attacks on commercial vessels and the global market demands oil move out of the Gulf region at record pace. Some captains now reportedly earn as much as $100,000 per month, plus an additional $50,000 bonus for each journey through the waterway.
The massive payments reflect just how dangerous commercial shipping has become since the war began on February 28, and Iran tries to grind the global economy to a halt by making it as dangerous as possible to move oil through the Strait of Hormuz.
The result is a market that increasingly incentivizes parties to move oil out of the region by whatever means possible, and some crew members are reportedly being pressured into voyages they would otherwise refuse.
Iran’s Drones That Russia Is Using. Image Credit: Creative Commons.
Iran F-14 Tomcat Fighter. Image Credit: Creative Commons.
New developments on Sunday, October 11, show why these huge payments are becoming necessary. Two Indian sailors are reportedly missing following an attack on a commercial tanker, and another vessel carrying Indian crew members was also struck by a projectile.
The incidents come as shipping companies also face rising insurance premiums and record freight charges that, while high, are no longer completely prohibitive.
Captains Offered Enormous Salaries
According to an October 6 report by the Financial Times, tanker captains are being offered salaries of around $100,000 per month, up from their typical earnings of around $15,000. Some captains reportedly receive bonuses of up to $50,000 per passage through the Strait of Hormuz, making the world’s most dangerous tanker shipping route extremely attractive for captains willing to take the risk.
Ordinary sailors, who may normally earn as little as $1,500 per month, are earning four to six times their normal salaries for taking on the same risk as the captains.
The situation has become extremely lucrative for crews on dedicated shuttle tankers, which take on more risk by regularly traveling in and out of the Strait of Hormuz and moving oil from ports to tankers waiting outside the strait.
But not everyone is participating in this lucrative new industry willingly; industry sources told the Financial Times that some sailors are being pressured to remain aboard vessels despite concerns about their personal safety. An industry source said that the crews “are almost being viewed as mercenaries.”
Two Indian Sailors Missing
On Sunday, October 11, Indian authorities confirmed that two sailors were missing following an attack on the MT Petro Dolphin. According to The Indian Express, the tanker was carrying 11 Indian crew members when a drone struck it. Search-and-rescue operations continue as authorities now attempt to locate the missing crew members.
Another tanker, the Marshall Islands-flagged MT Valthera, was struck by an unidentified projectile, igniting a fire on board. All 11 Indian sailors aboard the vessel have been reported safe.
Indian Shipping Minister Sarbananda Sonowal confirmed that authorities were coordinating rescue efforts, while New Delhi confirmed the attacks and called for a diplomatic resolution to the escalating crisis in the region.
Reuters also reported on Sunday that all 22 Indian crew members aboard the MT GEM No. 2 had been rescued following a separate incident off Ras Al Khaimah in the United Arab Emirates, though the Indian consulate did not immediately disclose what caused the incident.
The global shipping industry faces a serious problem: even enormous financial incentives can only go so far. Captains and crews may be willing to take the risk for the enormous payouts, but the chances of crews being killed are increasing all the time, strikes are escalating, and the cost of policing the Strait of Hormuz for the United States and its allies in the Gulf region could keep rising for as long as captains are willing to accept the growing financial incentives.
100 Maritime Incidents Confirmed
The International Maritime Organization has confirmed 100 maritime incidents since the war began in February. 24 seafarers have also died in that time.
The October 9 figures are up from 93 incidents reported just four days earlier.
The organization also says that an October 5 attack on the tanker ON PEACE injured 12 sailors.
The security situation in the region is evidently deteriorating and, even with reduced missile infrastructure and conventional military power, Iran is stepping up its attempted strikes on ships moving through the waterway, with some success.
Now, the shipping industry faces a difficult question we’ll soon see answered: how much money will it take to keep persuading crews to risk their lives, and how long can those incentives sustain global oil shipments before the entire economic model collapses?
About the Author: Jack Buckby
Jack Buckby is a British researcher and analyst specializing in defense and national security, based in New York. His work focuses on military capability, procurement, and strategic competition, and he produces and edits analysis for policy and defense audiences. He brings extensive editorial experience, with a career output spanning over 1,000 articles at National Security Journal, and has previously authored books and papers on extremism and deradicalization.
