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.
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