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China Merchants and COSCO Tanker Earnings Surge on Soaring Middle East Freight Rates

China Merchants Energy Shipping and COSCO Shipping Energy reported sharp net profit increases for the first three quarters of 2026. The financial gains were driven by an extraordinary surge in crude freight rates on shipping routes connecting the Gulf and China. In September, rates on the Middle East export TD34 route rose from $200,000 to over $800,000 per day.

Illustration: A very large crude carrier (VLCC) oil tanker navigating open deep-sea waters under daylight, showing deck pipes and shipping infrastruct
Illustration

China's two primary oil shipping companies, China Merchants Energy Shipping and COSCO Shipping Energy, disclosed their third-quarter earnings on October 28, 2026, showing significant profit increases, according to BigGo Finance.

China Merchants Energy Shipping recorded a net profit attributable to shareholders of CNY 11.983 billion (around $1.8 billion), representing a 263.15% increase year-on-year. COSCO Shipping Energy posted a net profit of CNY 7.389 billion (around $1.1 billion), reflecting an increase of 171.9%.

The reported earnings surge was driven by elevated international crude freight rates along shipping lanes between the Gulf and China. Notably, freight rates on the Middle East export TD34 route briefly touched WS800 points and jumped from $200,000 to over $800,000 per day in September amid heightened geopolitical risk premiums.

Sources

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