The cost of shipping US crude oil to Asia reached a record high of $44.8 million as of Tuesday, driven by buyers' urgent demand amid escalating supply disruptions in the Middle East. This figure represents the price to hire a very large crude carrier (VLCC) to transport 2 million barrels of crude from the US Gulf Coast to China, according to Baltic Exchange data cited by livemint.com.
The surge in shipping costs has been rapid, rising sharply from $39 million just one day earlier. Prior to the outbreak of the war in Iran in late February, the cost to charter a VLCC on this route was approximately $17.8 million. The increase reflects heightened market tensions and logistical challenges as buyers scramble to secure energy shipments amid geopolitical instability.
This spike in freight rates underscores the broader impact of Middle East conflicts on global energy markets, particularly affecting Asian importers reliant on US crude. The record cost surpasses previous highs and signals tightening supply chains and increased transportation risks. The Baltic Exchange data provides a quantifiable measure of these market pressures, highlighting the vulnerability of energy logistics to geopolitical events.
The Baltic Exchange's daily shipping cost data, released on September 15, confirms the $44.8 million figure as the new peak for VLCC charters on the US Gulf Coast to China route, setting a benchmark for freight rates amid ongoing regional disruptions.