Freight rates for very large crude carriers (VLCCs) have surged to record levels in September, driven by the Iran conflict, elevated risks in the Persian Gulf and widespread rerouting away from the Red Sea. Based on Baltic Exchange and Bloomberg data, benchmark daily earnings on Middle East–China routes have approached 800,000 USD, while freight from the Persian Gulf to North Asia is estimated at about 30 USD per barrel, up from 6 USD before the war. Operators are forced onto longer, more expensive alternative routes, sharply reducing effective fleet availability and pushing the tanker market higher.
The large crude tanker market is experiencing an unprecedented spike in freight rates. South Korean business media, citing Baltic Exchange assessments, report that VLCC freight from the Gulf of Oman to China has climbed to around Worldscale 450, translating into transportation costs of roughly 11.50 USD per barrel — the highest level since records began. Sector coverage drawing on Bloomberg data indicates that the benchmark daily rate for a VLCC on Middle East–China trades has reached close to 800,000 USD under current routing patterns. At the same time, Reuters analysis notes that the freight cost for moving crude from the Persian Gulf to North Asia has jumped to about 30 USD per barrel, up from around 6 USD before the conflict, while insurance premiums have surged from 0.05 to 2.50 USD per barrel.
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