The supertanker Esteem Explorer will carry about 2 million barrels of crude from the US to Japan in late November at a cost of US$81 million, versus an average of US$9.1 million last year. That works out to US$40.50 per barrel, about nine times last year's rate, and at least 80 cents more per gallon of gasoline than last year, according to Reuters calculations. Freight now accounts for more than 40% of the price of US oil, versus 7% on average in 2025, and import-reliant countries such as India, the Philippines and Indonesia bear the heaviest burden. The surge stems from attacks on ships linked to the US-Iran and Russia-Ukraine wars, which force longer routes and tighten vessel supply; rates from the Middle East to Asia hit a record around US$34 per barrel. Tanker owners are reaping windfall profits, with some earning as much as US$1.3 million per ship per day on a round trip from the Persian Gulf to Asia, against US$55,000 per day on average in 2025.
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Original headline: Why are soaring oil shipping costs pushing up prices ?
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