Oil shipments through the Strait of Hormuz have seen a notable rebound in recent months despite ongoing threats from Iranian attacks, with a single South Korean shipping company, Sinokor, playing a central role in this recovery. Since early September, Sinokor has accounted for approximately half of the tanker transits through the strait, according to maritime analysts, positioning the firm as a dominant force in Middle Eastern oil transportation.
Sinokor, led by chairman Chung Taesoon and his son Chung Ga-hyun, has rapidly expanded its fleet to become one of the world’s largest operators of supertankers—vessels capable of carrying around two million barrels of crude oil. The company increased its ownership from 42 very large crude carriers in December to 129 by early 2024. This expansion, partially funded by a $5.6 billion investment into 70 new tankers since the start of the year, has allowed Sinokor to corner a growing share of the tanker market, currently holding about 14 percent of the global supertanker fleet, far surpassing the next-largest competitor, China Merchants Group, which controls around 5 percent.
This surge has occurred against the backdrop of heightened regional security risks following the outbreak of conflict involving the United States and Israel’s attacks on Iranian targets in late February. Since May, the U.S. military has maintained a security operation to protect vessels from Iranian drone and missile strikes, encouraging some shipping companies—including Sinokor and state-owned firms from the United Arab Emirates, Saudi Arabia, and Kuwait—to increase traffic through the Strait of Hormuz.
Sinokor’s transits often involve ship-to-ship transfers, where tankers carry crude oil to the Gulf of Oman before transferring it to other vessels bound mainly for Asian markets. However, despite their efforts, oil prices remain elevated due to persistent demand and fears of further geopolitical escalations that could disrupt energy imports from the Persian Gulf.
Industry analysts note that the concentration of tanker ownership in fewer hands, exemplified by Sinokor’s growing fleet, may contribute to rising shipping rates. Charter costs for voyages between the Persian Gulf and Gulf of Oman have surged from about $120,000 per day last year to over $1 million per day currently. Experts suggest that this consolidation could have long-term effects on freight pricing, making it unlikely that shipping costs will return to prewar levels.
The heightened demand and operational hazards in the region come with increased risks to crews and vessels. More than 35 ships were attacked in October alone, marking it as the most dangerous month of the conflict for maritime traffic. Sinokor ships have been targeted multiple times since July, with incidents resulting in injuries to sailors. Iranian authorities have accused Sinokor vessels of breaching passage regulations frequently, adding another layer of complexity to the company’s operations.
Union representatives have raised concerns about maritime safety, suggesting that some shipowners prioritize profit over the well-being of crews navigating through the increasingly perilous Strait of Hormuz. While some companies offer higher wages to attract sailors willing to take the risks, these measures may not fully compensate for the dangers involved.
Sinokor’s low public profile has drawn attention, with little information available about the company’s leadership beyond Chung Taesoon’s unrelated role heading South Korea’s Baduk (Go) association. Founded in 1989, Sinokor initially operated container liner services between South Korea and China before shifting its focus toward oil tanker operations and expanding aggressively in the face of regional tensions.
As global energy markets adapt to ongoing geopolitical uncertainty, Sinokor’s rising prominence illustrates the complex interplay between security, commerce, and market concentration in one of the world’s most strategic shipping corridors.