US Gulf-to-China VLCC freight hits record $44.8 million

September 16, 2026 at 04:06 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The cost to ship a supertanker of US crude from the Gulf Coast to China reached a record $44.8 million on September 15, according to the Baltic Exchange in London. The surge follows Saudi Arabia's halt of crude flows through its East-West pipeline this week, deepening reliance on US barrels. The rate is up from $39 million a day earlier and $17.8 million before the US-Iran escalation in late February.

Key Facts

The Baltic Exchange in London reported a VLCC rate of about $44.8 million for a 2-million-barrel US Gulf-to-China voyage on September 15.
The same route cost $39 million a day earlier and about $17.8 million before the US-Iran escalation in late February.
Saudi Arabia halted crude flows through its East-West pipeline this week, a route that bypasses the Strait of Hormuz.
West Texas Intermediate crude remains cheaper than competing grades, keeping US shipments viable for Asian buyers despite record freight costs.

Record Freight Rate

The Baltic Exchange in London reported that hiring a very large crude carrier (VLCC) to move 2 million barrels from the US Gulf Coast to China cost about $44.8 million as of September 15. That is the highest level in the history of seaborne tanker shipping, according to Bloomberg. The rate jumped from $39 million for the same vessel class just one day earlier. Before the US-Iran escalation in late February, the cost was about $17.8 million.

Middle East Supply Disruption

Saudi Arabia stopped pumping crude through its East-West pipeline this week, a route that had helped the kingdom bypass transit risks through the Strait of Hormuz. The halt has made US supplies even more important for Asian buyers, Bloomberg reported. Record transport costs are doing little to deter Asian purchasers as the prolonged conflict reshapes global energy flows.

Market Viability

Trade remains viable because West Texas Intermediate, the benchmark US crude delivered to Asian markets, is still cheaper than competing grades. As long as that price advantage holds, buyers are likely to absorb the higher-than-normal shipping costs. The surge in Gulf Coast freight comes amid rising global tanker rates, with no signs of the trend reversing. Fewer vessels are willing to transit routes with attack risks, including the critical Strait of Hormuz, while high fuel demand keeps refineries buying and shipping as much crude as they can.