U.S.-Asia route fuel transportation costs soar to sky-high levels: renting a super tanker costs $29 million!

Historically, the cost of shipping crude oil from the United States to Asia has never been as high as it is now…

The global energy industry has been shaken by the ongoing escalation of Middle Eastern conflicts, reflected in soaring oil prices, shipping chaos, and concerns over rising inflation. According to data from the London Baltic Exchange, as of Wednesday, the cost to charter a Very Large Crude Carrier (VLCC) to transport 2 million barrels of crude oil from the U.S. Gulf Coast to China has exceeded $29 million, reaching a record high.

This figure is roughly double the cost from just two weeks ago.

The shipping rate also translates to about $14.50 per barrel, which is roughly one-fifth of current WTI crude futures prices—Wednesday, WTI futures hovered around $75 per barrel.

Following a series of strikes by the U.S. and Israel against Iran, and Iran’s attacks on neighboring countries, U.S. WTI crude and the global benchmark Brent crude prices surged sharply this week. The conflict has effectively halted traffic through the crucial Strait of Hormuz shipping lane.

And as oil shipments from the Persian Gulf are disrupted, Asian buyers are turning to purchase U.S. crude oil. Meanwhile, supplies in the Atlantic Basin have also become more expensive, with premiums continuing to rise. The Atlantic Basin includes the U.S. East Coast and Gulf Coast, the Caribbean, Europe, and West Africa.

According to data from the General Index, the evolving trade flows in the oil market have driven up prices for U.S. crude types like MARS (a heavy, sulfur-rich crude produced in the Mississippi River Valley), with the premium of MARS over WTI reaching its highest level since 2020.

It is currently unclear how long the surge in tanker freight rates will last.

Sources familiar with the rates say that Thai refiner PTT had previously temporarily booked a vessel costing about $29 million. However, data from Tankers International shows that the deal later fell through. It’s not uncommon for shipping bookings to fail when freight rates are rapidly changing.

On the most watched benchmark route in the tanker industry—the Middle East to China route—VLCC rates have soared to $475,000 per day.

Of course, due to the blockade of the Strait of Hormuz, the actual number of bookings has been limited.

The scarcity of available tankers is so severe that the daily charter rates now paid by charterers are approaching the costs that offshore drilling companies must pay to lease the most advanced floating rigs. Data shows that global top offshore drilling contractor Transocean charged an average daily rental fee of $470,000 for its ultra-deepwater rigs in the last three months of 2025.

(Source: Cailian Press)