Global oil shipping costs have surged, adding pressure to fuel prices and threatening to increase grocery bills and consumer expenses. A supertanker carrying two million barrels of crude oil from the United States to Japan is expected to cost $81 million for its late-November voyage. The same journey averaged $9.1 million last year, according to Reuters.
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The latest shipping cost amounts to $40.50 per barrel, around nine times last year’s rate. Kenneth Medlock of Baker Institute for Public Policy said every $10 increase in shipping costs adds approximately 23 cents per gallon to US gasoline prices. Higher transport expenses can spread across the economy because oil powers vehicles, agricultural machinery, freight trucks and aircraft.
The impact extends beyond energy markets as refiners face higher costs and consumers confront potential price increases. Freight rates accounted for more than 40% of US oil prices at a benchmark price of around $95 per barrel on Wednesday. Compared with an average of 7% in 2025, according to LSEG data. Oil-importing countries, including India, the Philippines and Indonesia, face particular pressure.
Attacks on vessels linked to the US-Iran and Russia-Ukraine conflicts have driven up freight and insurance costs. Rates for transporting oil from the Strait of Hormuz and the Red Sea to Asia reached a record high of around $34 per barrel this week. Some shipping companies are taking longer routes or transferring oil between vessels to reduce risks. These measures keep tankers occupied for longer and reduce vessel availability.
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Meanwhile, tanker owners are benefiting from sharply higher freight rates. Some have earned up to $1.3 million per vessel daily on round trips from the Persian Gulf to Asia, compared with an average of $55,000 in 2025, according to shipping analyst Georgios Sakellariou. However, industry experts warn that rates could fall quickly if oil supply improves. Until then, elevated transport costs risk prolonging inflationary pressure on households and businesses worldwide.