Supertanker freight rates hit highest level in about 60 years

Freight rates for very large crude carriers have surged to their highest level in about 60 years, driven by military tensions surrounding Iran and a severe shortage of available vessels, according to Bloomberg.

Citing British shipbroker Simpson Spence Young, the report said that even after adjusting for inflation, rates have reached their highest level since the first supertankers entered service in the 1960s.

A major factor is the decline in effective shipping capacity. Risks surrounding the Strait of Hormuz have prompted many shipowners to use longer alternative routes, significantly extending voyage times.

Although Middle Eastern crude exports have gradually resumed, oil flows have become more complicated. Producers are increasingly relying on ship-to-ship transfers at sea, adding around a week to each voyage and slowing the turnaround of the global tanker fleet.

Higher freight costs are already affecting oil refining. Spanish refiner Repsol reported margins of 36 U.S. dollars per barrel in the third quarter, while analysts estimated that figure had fallen to around 15 dollars in October, partly because of higher tanker costs.

ING said the cost of shipping crude from Saudi Arabia to the Netherlands had risen from around 2 U.S. dollars per barrel in 2025 to more than 35 dollars.

According to CCTV+, if tanker freight rates continue to rise, higher transportation costs could eventually prompt refiners to reduce production.