Oil tanker rates on key shipping routes surged 467% in 2025 as the market tightened due to growing crude supply, route disruptions, and US sanctions on Russia’s largest oil producers, Rosneft and Lukoil.
Market Tightening
Supertanker rates on the Middle East to China route hit their highest levels in five years at the end of November as traders sought alternatives to Russian crude following the October 22 sanctions. The US Treasury set a November 21 deadline for companies to wind down dealings with the sanctioned companies.
Six very large crude carriers made empty maiden voyages from Asian shipyards in 2025 to pick up crude from the Middle East, Americas, and Africa—compared to just one in 2024. Owners rushed to deploy new vessels as daily charter rates soared, forgoing the usual practice of loading gasoline on first voyages.
Sanctions Impact
The Treasury Department reported that approximately 60% of the 154 tankers blacklisted in January for involvement in Russian oil trade have stopped hauling barrels. The sanctions reduced available tanker capacity and drove up freight costs across all vessel sizes.
The amount of Russian and Iranian oil held on ships hit multi-month highs as US sanctions reduced the number of buyers, leaving fewer tankers available to deliver cargoes.
Strong Year-End Rates
Despite typically weaker commodity demand at year-end, vessel rates for transporting crude oil, LNG, iron ore, and wheat remained strong through late 2025. Tanker rates climbed for over a month amid sanction-related disruptions that led to a surge in oil in transit.
