Tanker Rates Soar to Record as Oil Crisis Becomes Shipping Crisis

AI Summary

Crude-oil tanker rates have surged to record levels as the Iran war disrupts trade routes and leaves vessels on longer, less efficient voyages. Supertanker costs on Gulf-to-Asia routes exceeded $1 million per day in September and rose above $1.4 million per day in early October.

The cost of shipping crude oil soared to record highs last month as the Iran war reshuffled trade routes and patterns and tied up more tankers in inefficient and lengthy voyages. Supertanker rates soared in September to above $1 million per day on the Persian Gulf to China route—a record high. The September record was soon smashed as freight rates soared by another 40% in the first week of October alone, to top $1.4 million per day on the Gulf to East Asia trip this week, according to data compiled by Bloomberg. The increased flows of oil…