TD22 freight cost eases to $634,974 per day after record high
by@Reuters
Summary
The freight cost for supertankers transporting oil from the U.S. to China has declined for the first time since early September, falling to $634,974 per day as of Friday. This decrease comes after reaching a record high of $637,675 on October 8, the highest rate recorded on this route since its inception, as reported by the Baltic Exchange. High freight rates have made U.S. crude oil increasingly expensive for Asian refiners, leading many to source oil from alternatives in the Middle East and Latin America.
Analysis
TD22: TD22 is the Baltic Exchange benchmark route assessment for chartering a very large crude carrier (VLCC) to transport US crude oil from the US Gulf to China. It serves as the standard reference for daily freight rates on this specific long-haul voyage. The news reports on TD22's movement after it reached elevated levels amid broader tanker market conditions. Florence Tan: Florence Tan is a Reuters journalist and Deputy Editor for Commodities and Energy, Asia, based in Singapore. She covers energy markets, oil flows, and related shipping developments across the region. She reported this article on US-China tanker freight rates. Jacqueline Wong: Jacqueline Wong is a Reuters editor who handles editing for energy and commodities coverage. She worked on this story detailing the TD22 freight rate data and market implications. Oil Sourcing: Asian refiners facing high costs for US crude are turning to alternative supplies from the Middle East and Latin America. Benchmark Role: The Baltic Exchange publishes daily assessments for key tanker routes including TD22, providing market participants with standardized freight pricing signals. Shipping Market: Elevated VLCC rates on routes involving the Atlantic and Middle East are influenced by geopolitical tensions and altered tanker routing around the Strait of Hormuz.
Categories
macro
Related sources
- https://www.reuters.com/business/energy/us-china-supertanker-freight-cost-eases-record-data-shows-2026-10-12/
- https://www.xindemarinenews.com/news/2108719702223400961
- https://en.wikipedia.org/wiki/Jacqueline_Wong
- https://www.ttnews.com/articles/us-china-oil-tanker-costs
- https://www.nytco.com/press/jacqueline-gu-brings-graphics-might-to-business/
- https://journalisthunt.com/journalists/florence-tan
- https://x.com/Florence_Tan/status/1493108338011570176
- https://muckrack.com/florence_tan/articles
- https://www.worldports.org/tankers-vlcc-market-trending-higher/
- https://m.economictimes.com/news/international/world-news/us-china-supertanker-freight-cost-eases-from-record-data-shows/articleshow/134880963.cms
- https://www.xindemarinenews.com/news/2091724656907509762
- https://muckrack.com/jacqueline-wong
- https://economictimes.indiatimes.com/news/international/world-news/us-china-supertanker-freight-cost-eases-from-record-data-shows/articleshow/134880963.cms
- https://www.ice.com/products/72270609/TD22-FFA-US-Gulf-to-China-Baltic-Future
- https://www.bairdmaritime.com/shipping/boxships/china-us-container-rates-near-record-iran-war-lifts-fuel-costs
- https://muckrack.com/florence_tan
- https://talkingbiznews.com/media-news/ny-times-biz-desk-adds-gu-as-graphics-and-multimedia-editor/amp/
- https://www.reuters.com/authors/florence-tan/
- https://asrwe.com/asr-university/vlcc-supertanker-rates-record-high-hormuz-september-2026
- https://www.reuters.com/media-center/statement-from-the-editors-of-reuters-the-associated-press-and-bloomberg-news/
- https://www.agbi.com/analysis/shipping/2026/09/gulf-china-supertanker-freight-nears-30-of-oil-price/
- https://pro.edgex.exchange/en-US/news/article/vlcc-tanker-rates-east-west-divergence
- https://oilprice.com/Latest-Energy-News/World-News/Supertanker-Rates-Slip-From-Record-Highs.html