US-China Oil Shipping Costs Hit Record High Amid Middle East Crisis

The war between the United States and Iran has blocked sea and air routes in the Middle East, raising concerns about disruptions to global supply chains for crude oil, semiconductors, batteries, and pharmaceuticals.

Gulf of Mexico to China Tanker Rates Double in Two Weeks

Oil transportation is the most pressing issue. According to Clarksons Research, which tracks shipping data, an estimated 3,200 vessels—representing about 4% of global ship tonnage—are anchored in the Persian Gulf. Michael Goldman, North America General Manager at CARU Containers, noted, "Although it may seem like a small percentage, this will create a domino effect causing congestion elsewhere."

Asian countries cut off from Middle Eastern oil imports are turning to the United States. Bloomberg reported on the 4th (local time) that chartering a Very Large Crude Carrier (VLCC) to transport 2 million barrels of oil from the US Gulf of Mexico to China has reached a record $29 million (approximately 42.4 billion won). This represents a doubling in just two weeks. Previously booked tanker shipments are now being canceled due to the recent surge in freight rates.

The impact extends beyond crude oil. AP reported, "The Middle East exports not only crude oil but also petrochemical feedstocks used in plastic and rubber manufacturing, as well as nitrogen fertilizers. Pharmaceuticals exported from India and semiconductors and batteries shipped from Asia to the rest of the world also transit through the Middle East. Delays in transportation may occur."

Air Cargo, Carrying 35% of Global Freight Value, Also Affected

Supply chain instability is not limited to the Persian Gulf and Strait of Hormuz but is spreading to the Red Sea and Suez Canal, which connect Asia and Europe. This is due to the increased likelihood of ship seizures in the Red Sea by Iran-backed Houthi rebels. Shipping company Maersk recently announced it would reroute vessels around Africa's Cape of Good Hope. This adds 10-14 days to voyage times and approximately $1 million (about 1.46 billion won) in fuel costs per vessel.

The closure of airports in the Middle East is also affecting air cargo. While aviation accounts for only about 1% of global freight volume, it represents 35% by value, as it carries high-value goods such as pharmaceuticals and electronics.

Patrick Penfield, professor at Syracuse University, warned, "This situation is having a serious impact on global supply chains. As the conflict continues, we will see material shortages and significant price increases."