Supertanker freight rates hit record high on Hormuz snarls

Hiring a supertanker to move crude from the U.S. to Asia now costs more than ever. On Wednesday, Oct. 7, the price of chartering a very large crude carrier (VLCC) for that trip reached $77 million, according to Baltic Exchange data reported by Bloomberg. The 2025 average was $9.2 million. Semafor said the cost is up more than 700% from last year's average.bloomberg+2

The jump shows how the Iran war has changed the way oil moves at sea. Oil flows out of the Middle East have recovered, but the trade is now slower and more complicated. Longer voyages tie up ships, which leaves fewer tankers free for charter worldwide.ttnews

Freight now a large part of the price of oil

Headline oil futures are trading near $$100$$ dollars a barrel, but those prices usually reflect crude at the point of export. On a 2 million-barrel cargo, the $77 million charter adds about $$38.50$$ dollars a barrel to the cost of delivery, Bloomberg calculated. In some markets, such as West Africa, sellers have had to cut their export prices to make up for the freight costs.ttnews

Rates had already been climbing. The Baltic Exchange's weekly report for Oct. 2 put the U.S. Gulf-to-China route (TD22) at about $51.7 million. The Middle East Gulf-to-China route (TD3C) earned an owner about $1.22 million a day on a round trip. That is roughly 10 times the rate six months earlier.finance.biggo+1

Ships pulled toward the Gulf

Exports from the Middle East rose above pre-war levels for part of September. Reuters reported that this has required more supertankers to shuttle crude through Hormuz, often with ship-to-ship transfers offshore. According to data firm Kpler, about 40% of the region's crude now avoids the strait, and most of the oil that does cross it changes tankers offshore.aljazeera+1

Fees for passage are adding to costs. A June 17 agreement between President Donald Trump and Iranian President Masoud Pezeshkian provided for "safe passage of commercial vessels with no charge, for 60 days only," according to the Congressional Research Service. Iran's foreign ministry has said it does not charge tolls, but also that "services will be provided" that "require charging fees". Kpler analyst Brohard has suggested that Gulf exporters may be quietly paying Iran for safe passage. Al Jazeera noted that the claim has not been verified.straits+2

Attacks spread beyond Hormuz

The rate record came as attacks on tankers increased in several conflict zones. Semafor reported that a tanker was struck off Qatar on Wednesday. A drone strike had sunk a tanker off Russia's Black Sea coast, and two tankers were targeted in Bulgarian waters on Tuesday.semafor

Washington's sanctions on Iran's shadow fleet have also had trouble keeping up. "They can just start another company," one tanker operator told The New York Times ↗ 2.19%. "Once you start sanctioning marine service providers, it will never end".semafor