Oil Supertanker Rates on China Routes Double Since Sanctions
- VLCC rates from Middle East to China jump 112% since Jan. 10
- Costs could stay high if Trump targets Iranian crude flows
A supertanker.
Source: Frontline
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The cost to hire an oil supertanker on key routes to China has doubled since the US imposed sanctions on Russia, showing the extent to which the move has upended the global shipping market.
The sanctions have jolted a freight market that was, until recently, dealing with softer demand due to supply curbs, a tepid Chinese economy, and an easing of Middle East tensions. The number of confirmed journeys hasn’t changed much, but the pool of available ships has shrunken rapidly, and there’s intense competition on certain routes.