With high hazard pay, oil tanker captains can earn an extra $5 million in monthly bonuses

First submission 10-07 22:02

Update time 10-08 07:21

The shipping crisis in the Strait of Hormuz has not yet been resolved. (AFP file photo)

[Financial Channel/Comprehensive Report] With the increasing number of Iranian attacks on ships in Hormuz, the captains of passing tankers can now receive a monthly compensation of US$100,000 (NT$3.18 million) and a bonus of US$50,000 (NT$1.59 million) per voyage, which can reach a total of nearly NT$5 million.

To keep Gulf crude flowing through the waterway, shipowners are offering higher hazard pay to persuade seafarers to stay on board, three people familiar with tanker owners and crews told the Financial Times.

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Ordinary sailors usually earn only US$1,500 (NT$48,000) per month, while captains have a normal monthly salary of about US$15,000 (NT$480,000). When operating in the southern Red Sea and the Gulf of Oman, their wages are twice that of ordinary sailors. Wages increased further during each crossing of the Strait of Hormuz, with the average sailor earning at least four to six times the normal wage.

Many voyages to and from the strait are carried out regularly by specialized tankers, allowing sailors to earn higher wages for months while facing the constant risk of Iranian missile and drone attacks.

One source said those making the voyage were seen almost as "mercenaries" in the eyes of seafarers, reflecting the dangers of crossing the channel. Ships using the waterway are facing one of the worst attacks since the US and Israeli attacks on Iran sparked a war in February.

According to maritime security company Vanguard, there have been at least 14 attacks since September 20, including four attacks on ships since Saturday.

This week, freight rates for goods transported through the controversial waterway reached a record high of US$1.3 million (NT$41.42 million) per day, compared with about US$20,000 to US$50,000 (NT$1.6 million) per day last year.

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