Tanker freight rates have eased from October’s extreme highs but remain exceptionally elevated as disruptions around the Strait of Hormuz reduce available tonnage and raise voyage risk.
The cost of moving crude from the Middle East Gulf to Asia on a VLCC exceeded $1.3 million per day in mid-October, while some routes reached even higher levels. Industry estimates also put the cost of shipping U.S. Gulf crude to China at about $80 million per voyage earlier in the month—roughly ten times the previous average. By October 24, that figure had eased but remained close to $60 million for a comparable voyage.
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