Shipping crude oil from the US to Asia has reached unprecedented costs, with supertanker rates hitting $29 million for a two-million-barrel voyage to China. This represents a doubling in just two weeks and marks the highest shipping costs on record, according to the Baltic Exchange in London.

The surge stems from Middle East conflict disrupting traditional supply routes through the Strait of Hormuz. With Persian Gulf flows blocked, Asian buyers are scrambling for US barrels, driving up Atlantic Basin premiums. US Mars Blend crude is now trading at its widest premium to West Texas Intermediate since 2020, data from General Index shows.

Despite the record rates, the market shows signs of strain. Several supertanker bookings from the US Gulf Coast have already collapsed as prices move too quickly for deals to stick. Thai refiner PTT's $29 million booking fell through within 24 hours. Meanwhile, on the industry's benchmark Middle East-to-China route, daily earnings have soared to $475,000, though actual bookings remain limited due to the Hormuz blockage.