Middle East to China VLCC Freight Rates Surpass $1.2 Million Daily

Daily earnings for Very Large Crude Carriers (VLCCs) operating along the benchmark route from the Arabian Gulf to China exceeded $1.2 million per day in late September 2026, according to a report by Oil & Gas Middle East.

The Baltic Exchange's TD3C benchmark, tracking tankers shipping crude from Ras Tanura in Saudi Arabia to Ningbo in China, reached Worldscale 1,157.5. This translated to round-trip earnings of $1,235,414 per day.

Data from LSEG indicated that daily spot rates for Middle East–China crude voyages reached an absolute high of $1.27 million on September 21, 2026. This marked a sharp rise compared to $79,700 per day recorded in mid-September 2025.

The surge in freight rates was attributed to severe geopolitical shipping bottlenecks near the Strait of Hormuz, where tanker flows were curtailed to a fraction of their normal capacity.

The increased transport costs are currently being absorbed between Gulf national exporters and Chinese refining hubs maintaining long-term deliveries.