Strong Asian demand and trade shifts push tanker rates to highs before seasonal cooling
Crude oil tanker shipping rates reached multi year highs toward the end of 2025 before declining in early 2026. The rise and fall were driven by changes in global oil demand, trade routes, and seasonal shipping patterns. Two major tanker types, Very Large Crude Carriers (VLCCs) and Suezmax vessels, played a key role in these market movements.
In late 2025, demand for crude oil shipments increased sharply, especially from buyers in East Asia. Countries such as China, Japan, South Korea, India, and the United States increased imports, which reduced the number of available vessels. As a result, tanker rates climbed across major global routes. In November 2025, VLCC rates from the Persian Gulf reached their highest levels since 2020. At the same time, Suezmax rates rose to multi year highs on routes linked to the U.S. Gulf Coast and the Black Sea.
VLCCs are used mainly for long distance routes and can carry nearly two million barrels of crude oil. Suezmax tankers are smaller and designed for medium length routes, but they can pass through the Suez Canal, making them highly valuable. When VLCC rates became very high, some shippers turned to Suezmax vessels, which also pushed those rates higher.
Higher oil production in the Persian Gulf following increased output from OPEC lowered regional crude prices. This encouraged more exports and raised demand for shipping. Seasonal factors also played a role, as autumn is a key period for building fuel inventories and supporting agricultural and heating needs in Asia.