From early February to late March, shipping costs for crude tankers departing the U.S. Gulf Coast rose sharply across all vessel classes and destinations as global trade flows adjusted to the disruption of Middle East supply. Rates increased most dramatically on the Asia route. Over that period, the cost of shipping crude from Houston to Asia (left graph) rose by roughly $13.50/bbl (about +130%) on Aframax vessels (roughly 600–750 Mbbl capacity) and by about $6–$7/bbl (+80%) on VLCCs (Very Large Crude Carriers, about 2 MMbbl capacity). On the Europe route (right graph), the increase was similarly pronounced, with VLCC costs rising by approximately $5/bbl (+100%) and Aframax rates increasing by about $10.50/bbl (+150%). The gains reflected rapid repositioning of ships, longer voyage distances, and strong demand for available tonnage as trade patterns shifted due to the Iran war.
Featured Articles
Keep Pushin’ – Venezuela’s Crude Oil Terminals Need Minor Fixes, Major Overhauls to Boost Exports
A lot of work must be done to revive Venezuela’s crude oil industry, which has suffered from years of poor management and underinvestment. Exports have rebounded sharply in early 2026, but much more could be done. Today, we outline the additional steps that could boost export volumes.
Let It Go, Let It Flow – Jones Act Waiver Opens Up New Routes for Foreign-Flagged Ships on U.S. Waters
The White House gave the green light on March 18 for foreign-flagged tankers to move crude oil and refined products between U.S. ports by waiving the Jones Act. In less than two months, about 60 waivers have been recorded. Today, we’ll dig into the new patterns that have emerged.
Me and Mrs. Jones – White House Issues Jones Act Waiver, But Market Impact Could Be Limited
The White House has issued a 60-day waiver of the Jones Act, which will allow foreign tankers to move crude oil and refined products between U.S. ports in a bid to cool gasoline prices. Today, we dive into what the waiver could mean for U.S. refiners, consumers, and other market participants.
