The disruption follows a spike in rates for very large crude carriers (VLCCs), where a single voyage from the US Gulf to China peaked near $80 million—more than the $74 million cost of a SpaceX Falcon 9 launch. Freight costs on that route hit $40 per barrel, up from $8.60 before the conflict in the Middle East. While rates have eased slightly to $634,974 per day from over $637,000 on Oct 8, per Baltic Exchange data, costs remain elevated due to shipping workarounds in the Strait of Hormuz.
Wednesday, October 21, 2026
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Americas Face Heavy Oil Glut as Tanker Rates Hit Records
Commodities8 days ago
A crisis in vessel availability has triggered a supply shortage for Eastern refineries as crude becomes trapped in the West. The Americas now have a glut of heavy oil because soaring shipping costs have effectively shut the market arbitrage, forcing Asian and European buyers to scramble for alternative barrels from the Middle East and Latin America. The freight squeeze has pushed some listed shipping companies to a record combined value of more than $70B.
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