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Freight costs are pushing Japan crude import prices higher
Freight makes up about a fifth of the cost of a crude cargo, and the VLCC tanker market is a key driver of what buyers ultimately pay.
Oil is getting more expensive before it even reaches refineries, with freight costs taking a larger share of the delivered price for crude cargoes, according to OilPrice.
The outlet said freight now accounts for roughly a fifth of the cost of a crude shipment, making tanker-market pricing a major determinant of crude import costs for buyers like Japan.
At the center of the squeeze is the very large crude carrier, or VLCC, which can move about 2 million barrels in a single voyage, per OilPrice.
OilPrice also noted that disruptions in tanker supply linked to the Gulf and Red Sea context have contributed to higher freight rates, raising the overall price buyers face for crude imports.
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