US-China supertanker freight cost drops to $634,974 per day
by@Reuters
Summary
The freight rate for supertankers shipping US oil to China, known as TD22, has decreased to $634,974 per day, marking the first decline since September 8 after reaching a record high of $637,675 on October 8. This decline highlights the volatility in shipping costs, which has been significantly influenced by global supply and demand shifts in the tanker sector. Elevated rates have compelled Asian refiners to seek alternative crude supplies from the Middle East and Latin America, as the high costs make US crude less accessible.
Analysis
Florence Tan: Florence Tan is a Reuters journalist specializing in energy markets and shipping. She authored the report detailing the recent decline in US-China supertanker freight rates from their record peak. Her work provides timely analysis of global crude oil logistics and trade flows. Jacqueline Wong: Jacqueline Wong serves as an editor at Reuters. She oversaw the editing of the article covering the easing of benchmark TD22 freight rates on the US to China route. Her role ensures accurate reporting on developments in the tanker charter market. Market Dynamics: The benchmark TD22 rate for VLCC tankers shipping US oil to China has experienced sharp volatility tied to global supply and demand shifts in the tanker sector. Oil Trade Routes: Elevated shipping costs on the US-China route are leading Asian refiners to prioritize alternative crude supplies from the Middle East and Latin America.
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