Oil transport costs surge to an astonishing new high due to blockage in the Strait of Hormuz
智通财经2026/10/07 16:41The cost of renting very large crude carriers (VLCCs) to transport crude oil has surged to record highs, adding substantial expenses to the oil supply chain. According to data from the London Baltic Exchange on Wednesday, the cost of chartering a VLCC to deliver US crude oil to Asia is $77 million. The average level for 2025 is forecasted at $9.2 million. Although the main crude oil futures prices are currently trading around $100 per barrel, these futures are typically based on the grade of crude oil at the export location. For a cargo of 2 million barrels, freight charges mean an additional delivery cost of about $38.50 per barrel. In some markets, such as West Africa, exporters are forced to discount their cargoes at the export location. The Iran war has caused disruption in the tanker market, reshaping the way oil is shipped from the Middle East and significantly increasing transportation times. Although crude flows from the region have rebounded in recent weeks, trading routes are far more complicated than before the Iran war, resulting in longer delivery times and a substantial reduction in the effective capacity of the fleet.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The Federal Reserve meeting minutes state that officials expect short-term inflation to remain elevated.
Federal Reserve meeting minutes: Officials generally expect inflation to remain elevated in the short term.
The Federal Reserve meeting minutes indicate insufficient progress in combating inflation in recent months
Federal Reserve meeting minutes: Officials stated that there has not been sufficient progress in reducing inflation over the past few months.
Federal Reserve minutes: Some officials say rate hikes can curb the spread of industry price increases
Federal Reserve meeting minutes: Some officials indicated that raising interest rates would help prevent the spread of price increases in specific industries.
Federal Reserve meeting minutes: Several officials say policy is not yet sufficiently tight
Federal Reserve meeting minutes: Several officials indicated that the policy is not yet sufficiently restrictive.
Crypto prices
More
