{
  "id": 9648169,
  "title": "Soaring Freight Costs Make Japan’s Crude Imports the World’s Most Expensive",
  "url": "https://urgent.news/2026/09/24/soaring-freight-costs-make-japans-crude-imports-the-worlds-most",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-24T23:00:00.000Z",
  "source": {
    "name": "OilPrice",
    "slug": "oilprice",
    "url": "https://oilprice.com/Energy/Crude-Oil/Soaring-Freight-Costs-Make-Japans-Crude-Imports-the-Worlds-Most-Expensive.html"
  },
  "original_language": "en",
  "account": "Japan's crude imports have skyrocketed, making them the world's most expensive, owing to soaring freight costs that now account for approximately a fifth of the total price. The culprit behind this price surge is the tanker market, with very large crude carriers (VLCCs) being particularly affected. These supertankers can transport about 2 million barrels in a single voyage, but are spending more time at sea due to stranded Gulf and Red Sea supplies. As a result, Indian buyers are reaching into Guyana and Brazil for supplies, committing ships to lengthy 30-40 day journeys. Smaller tankers are insufficient for such large volumes over these distances.\n\nThe Strait of Hormuz exacerbates the issue, with some VLCCs navigating short, expensive shuttle runs to the Gulf of Oman. These carriers spend around 10 days in queues awaiting ship-to-ship transfers, tying up capacity that would otherwise supply the broader market. The Hormuz shuttle to Fujairah or Sohar adds $15-20/bbl, equivalent to $20 million for a fully loaded VLCC. Some shipping companies refuse the crossing or demand extreme rates, leaving no relief for the immediate market.\n\nJapan, heavily reliant on US crude imports, faces the brunt of these costs. A VLCC voyage from the US Gulf Coast to Japan now costs about $53 million, or roughly $26-28/bbl. By comparison, rates between the Middle East and China have doubled since the end of summer. Japan's purchasing needs extend beyond refinery supplies, as government-held crude reserves need replenishing. The government released about 80 million barrels in March and another 20 million in July, but reserves stood at roughly 182 million barrels by the end of July. A program is underway to restore reserves to about 90 days of cover, with Japan needing roughly 48 million barrels of additional crude.",
  "summary": "Oil is increasingly getting more expensive before it even reaches a refinery. Freight now accounts for roughly a fifth of the cost of a crude cargo, turning the tanker market into a major driver of the price buyers pay. At the center of the squeeze is the very large crude carrier, or VLCC, the supertanker that can move about 2 million barrels in a single voyage. Amidst stranded Gulf and Red Sea…",
  "key_points": [
    "Freight costs now make up a fifth of Japan's crude import price",
    "Tanker market, especially VLCCs, suffers from stranded supplies",
    "Strait of Hormuz adds $15-20/bbl to shipping costs"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}