Surging maritime shipping costs have led Asian and Chinese refiners to favor Middle Eastern crude over West African supplies, according to analytics firm Kpler. Shipping freight rates have quadrupled from pre-crisis baselines, shutting down long-haul arbitrages. Resurgent Persian Gulf exports and restored Saudi logistics have consequently reclaimed market share in East Asia.
Spot container shipping rates from China to the United States have peaked after surging over 330 percent since late February amid the Strait of Hormuz crisis, according to Xeneta data. The market is stabilizing as alternative logistics routes absorb disrupted regional flows, with approximately 40 percent of bypass shipments utilizing the UAE Port of Fujairah and offshore transfers.
Middle East crude exports through the Strait of Hormuz climbed to 14.2 million barrels per day in late September, recovering to nearly 80% of pre-war levels, according to Kpler data cited by Reuters. Despite easing crude availability, Brent prices remain above $100 per barrel due to logistical bottlenecks, including record tanker rates and soaring insurance costs.
Shipments of Iranian crude and oil products to major buyers including China and the UAE have ground to a halt following naval blockades and terminal inactivity, according to tracking data from Kpler and TankerTrackers. China previously purchased an average of 1.5 million barrels per day of Iranian crude, while around 500,000 barrels per day of refined products and LPG previously flowed to the UAE, China, and Asian markets. Concurrently, an Iranian lawmaker warned that any renewed US military strikes would open new regional fronts.
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