Affected by the conflict between the US, Israel, and Iran, the freight rates for ultra-large oil tankers have risen to the highest level in 60 years.

Recently, the military strikes launched by the US and Israel against Iran have reshaped the Middle East crude oil trade landscape. Coupled with a severe shortage of fleet supply, rates for very large crude carriers have soared to their highest levels in 60 years. According to Golden Ten Data on October 11, the latest ING report points out that for an oil tanker departing from Saudi Arabia to the Netherlands in September, the converted shipping cost amounted to 35 US dollars per barrel of crude oil—over one third of the oil price—whereas the average transport cost for the same route last year was only 2 US dollars per barrel. By October, tanker freight rates remained elevated. According to a US source on October 9, shipbrokers noted that even when adjusted for inflation, current rates are the highest since very large crude carriers were introduced in the 1960s. At present, the surge in shipping rates is transmitting along the entire energy industry chain. The core concern in the market has shifted from “how much higher can freight rates go” to how much more pressure the global crude oil trade system can withstand before surging shipping rates erode refining profits. (CCTV News)