US-China crude tanker shipping rates ease after reaching record highs

The benchmark TD22 supertanker freight rate for shipping crude oil from the US to China slipped to $634,974 per day after hitting an all-time peak of $637,675 on October 8. Elevated chartering costs have prompted Chinese refiners to turn to Middle Eastern and Latin American suppliers for crude supplies.

Published October 12, 2026 Source: Baird Maritime

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Photo: Baird Maritime

The daily cost of chartering a very large crude carrier (VLCC) to transport US crude to China retreated slightly at the end of last week, based on data from the Baltic Exchange. Benchmark TD22 freight rates declined to $634,974 per day, marking the first rate drop since September 8 after touching a record high of $637,675 per day on October 8.

The TD22 route serves as the industry benchmark for hiring a supertanker to carry two million barrels of US crude oil to China. Chartering costs to transport two million barrels from the Gulf of Mexico to China for November reached $80 million per voyage last week.

According to shipbrokers and traders, these elevated shipping rates have made American crude less economical for Asian buyers. In response, Chinese refiners are ramping up alternative crude purchases from suppliers in the Middle East and Latin America, bolstering vessel demand along Gulf-to-China maritime energy routes.