U.S.-to-China Crude Freight Rises About $31 a Barrel as Costs Near $40

Estimated tanker freight for a November voyage from the U.S. Gulf Coast to China reached about $40 per barrel, roughly $31 above the cited prewar rate and adding sharply to delivered crude costs in Asia. The estimate covered a 2-million-barrel cargo and reached $80 million during the week of Oct. 5-9. Dividing that amount across the cargo yields about $40 in freight per barrel. It does not include the crude’s purchase price. Comparable prewar freight was $8.60 a barrel. The difference is about $31.40 per barrel in transport costs for that route and cargo size; it does not mean crude prices themselves rose by that amount. Monthly U.S. Gulf-to-China very large crude carrier freight assessments averaged $79.21 per metric ton in August and $156.19 in September.

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