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Shipping Costs Soar as Russian Fallout Upends Fuel Flows

  • Clean tanker freight rates surged to highest level since 2020
  • Some shippers switching fleet to haul fuels rather than crude
Updated on

The dislocation of global fuel markets after Russia’s invasion of Ukraine has boosted the cost of shipping products such as diesel by sea.

Rates to haul fuels such as gasoline and diesel, known in the industry as clean tanker freight, have more than doubled this year to the highest since April 2020, according to Baltic Exchange data. On one key route in Asia, ship owners are now earning over $47,000 a day transporting products from South Korea to the distribution hub of Singapore, compared with $98 a day prior to the war.