Global Oil Tanker Shortage Worsens as Russia Shifts to Non-G7 Fleet

· Shipping · United States · China

The global oil tanker shortage is worsening, with charter costs from the US to China now exceeding the cost of launching a rocket into space, according to industry reports. The crisis stems from multiple factors: sanctions on Russia's shadow fleet have forced Moscow to rely increasingly on non-G7 tankers, particularly domestic operators, whose shipments in September reached their highest level since the G7 price cap was imposed. VLCC markets have strengthened across both basins, with gains in Atlantic and Pacific routes. The tightening supply of available tonnage is pushing rates to extraordinary levels, affecting global crude oil transportation economics and creating significant cost pressures for refiners and traders worldwide.

Why it matters：The tanker shortage directly raises costs for oil refiners and traders globally, potentially affecting fuel prices and trade flows. The shift to non-G7 tankers also signals sanctions evasion patterns that could trigger further regulatory action.

Key points

  • It is now more expensive to hire a tanker from the US to China than to launch a rocket into space
  • Russia's crude exports in September reached highest level since the G7 price cap was imposed
  • VLCC markets have strengthened across both Atlantic and Pacific basins

Sources (original reporting)

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