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.
The Baltic Exchange reported sharp increases in crude tanker freight rates connecting the Gulf region to China on October 9, 2026. Very Large Crude Carrier earnings on key Middle East to China routes experienced substantial daily gains amid vessel constraints and strong chartering activity.
Crude oil shipping costs on the TD3C route from the Arabian Gulf to China rose by 406% to reach $229.76 per metric ton at the end of September. The sharp increase in VLCC tanker rates has forced regional crude producers to deepen price discounts to remain competitive in Asian markets. Saudi Arabia reduced its official selling price for Arab Light crude by $3 per barrel for November.
Intercontinental Exchange has launched new freight derivatives, including the first tanker freight futures on the TD34 route from the Gulf of Oman to China. The contracts are cash-settled based on Baltic Exchange assessments to help market participants hedge freight risk amid shipping disruptions. Average daily trading volume across ICE freight markets grew 33 percent year-to-date.
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