$60 Million Supertanker Freight Rates Hit US Crude

The wartime environment in the Middle East and disruptions around the Strait of Hormuz have pushed freight costs in global oil shipping to historic highs. Rising costs have brought shipments of United States crude to the Asian market to a near-halt. Asian refiners' purchases of American crude for November delivery fell 50% compared to September, dropping to approximately 25 million barrels. If the pace of orders remains at this level, the Asian continent will receive the lowest crude oil flow from America in the last 7 years. This picture has fundamentally altered the balances in global energy routes.

Why did freight costs hit record highs?

Behind the jump in shipping costs are shuttle services deployed to overcome congestion in the Strait of Hormuz. Middle Eastern producers conducting ship-to-ship oil transfers on the open sea locked supertanker fleets in the Gulf of Oman for weeks. According to Kpler data, the shuttle fleet in the region reached 80 very large crude carriers.

While the round-trip time between Basra and Sohar is normally 9 to 10 days, operational disruptions pushed it to 23 days. These delays crushed the available tanker supply in global waters. The charter rate for a supertanker from the US Gulf Coast to China reached an all-time high of $80 million earlier this month.

The amount is currently hovering around $60 million. According to data shared during the Valero Energy earnings call, the transport cost per barrel from America to Asia climbed to $30 to $35. This figure stood at only $5 on average in 2025.

How did high freight rates affect oil prices?

The sharp rise in transport costs led to deep divergences in global crude oil pricing. Asian and European refiners turned to crude from geographically closer regions to avoid high freight costs. Demand for nearby supply carried premiums for European and Middle Eastern crude to historic highs. According to Wood Mackenzie data, Norway's Johan Sverdrup crude saw a record premium of $24 against Brent crude. The physical Dated Brent benchmark also reached a $20 premium spread over Brent futures.

Producers trapped on long-haul routes resorted to steep price discounts to offset the pressure of high freight rates. West African crude oil prices found buyers with record discounts falling as low as minus $20. In the US domestic market, Midland East Houston premiums dropped from $3 to 25 cents. The premium for Mars crude from the Gulf of Mexico fell from $17.50 at the end of March to $6. Due to the historic surge in freight costs, global oil trade has become trapped in regional basins.

This content is for information purposes only and does not constitute investment advice.