Commodities
Freight Rates Soar Past Oil Prices Amid Middle Eastern Supply Crunch
The VLCC freight rates have seen an uninterrupted rally, with earnings breaking the $1 million per day barrier. This surge in freight rates is more dramatic than the price of oil, making controlling costs crucial for refiners' overall feedstock economics.
According to Vortexa, which monitors energy trade flows and tanker shipping markets, US-China LPG trade has recovered to pre-2025 trade war levels. This recovery is attributed to a lack of Middle Eastern supply and the adoption of a better customs duty strategy.
The Iranian crude loadings have collapsed to 210kbd due to the Hormuz blockade disrupting exports, tanker circulation, and China's replacement barrel economics.