Oil Shipping Costs Spike, Lifting Prices from Pump to Grocery
Shipping a supertanker of crude from the United States to Japan is expected to cost $81 million in late November, compared with an average of $9.1 million last year, translating to $40.50 per barrel. Freight rates now account for more than 40% of the price of US oil, up from 7% on average in 2025, as attacks on ships related to the US-Iran war and the Russia-Ukraine war have boosted freight and insurance rates. Rates to move oil from the Strait of Hormuz and the Red Sea to Asia surged to a record high around $34 per barrel this week.
Why it matters: The record oil shipping costs illustrate how conflict-driven disruptions in energy chokepoints feed into global inflation.