Key facts
- Oil tanker shipping costs have surged dramatically, with a journey that cost $9.1 million last year now costing $81 million.
- The increased shipping costs translate to about $40.50 per barrel of crude oil, a significant jump from previous rates.
- Attacks on ships in the Middle East and longer shipping routes are contributing to the spike in freight and insurance rates.
- Higher transportation costs are expected to lead to sustained price increases for groceries and other consumer goods.
- Asian refiners' profits are being squeezed by record high oil tanker rates.
Soaring oil tanker shipping costs, driven by attacks in the Middle East and longer shipping routes, are significantly inflating the price of goods. The journey for an oil supertanker from the US to Japan, which cost $9.1 million last year, is now projected to cost $81 million, translating to about $40.50 per barrel. This surge in transport costs is expected to lead to sustained price increases for consumers, impacting everything from gasoline to groceries. Asian refiners are already experiencing squeezed profits due to record high tanker rates. Shippers are navigating risks by using more vessels and longer routes, further reducing ship availability and increasing transit times.