Shipping Costs for Giant Oil Tankers More Than Double This Month

The cost of shipping oil in giant tankers more than doubled since the beginning of this month amid robust demand caused by the ongoing war set off by Russia’s invasion of Ukraine in February.

The average rate for hiring very large crude carriers (VLCCs) hit $43,400 a day Wednesday on the London-based Baltic Exchange, 2.65 times the rate at the beginning of September. The Baltic Dirty Tanker Index, a compilation of shipping costs on international crude oil routes, jumped 25% in the last three months to 1501 Wednesday.