A sharp rebound in international oil prices has driven up global shipping rates, and shipping costs have entered a phase of gradual increase.
In late August 2026, international crude oil prices surged sharply, driving a synchronized increase in global shipping freight rates. Both container shipping and oil tanker shipping sectors have witnessed a phased rise in freight rates, reversing the previous downward trend in the off-season. Driven by overlapping factors including escalating geopolitical tensions in the Middle East, restricted shipping through the Strait of Hormuz, and tightening crude oil supply expectations, international oil prices have hit a new periodic high for the year, becoming the core driving force behind the current rise in global shipping costs.
As of August 23, Brent crude oil prices rose to $93.78 per barrel, the highest level since late July, while WTI crude oil prices increased by 2.3% to $87.83 per barrel, marking the most significant geopolitical oil price surge in 18 months. Bunker fuel is the core variable cost of the shipping industry, accounting for 30% to 50% of shipping companies' total operating expenses. The rapid rebound in oil prices has greatly squeezed shipowners' profit margins, prompting major shipping lines to adjust fuel surcharges and base freight rates across global routes.
The current shipping freight hike features full coverage and gradual growth. In the container shipping market, leading carriers have officially implemented new emergency fuel surcharge adjustments in August. Major shipping companies including CMA CGM and ONE have successively released new fuel surcharge policies for global routes. CMA CGM has levied an additional $150 per TEU for dry containers and $165 per reefer container on long-haul ocean routes since August 1, with gradient rates for regional routes, covering all major global trunk and feeder routes.
The oil tanker shipping market has seen a more drastic price increase than container shipping. Statistics show that the daily charter rate of Very Large Crude Carriers (VLCCs) has skyrocketed recently, with some routes achieving a month-on-month increase of over 180%. Freight rates on core crude oil shipping routes from the Middle East and West Africa to China have risen sharply. Due to worsening navigation risks in the Strait of Hormuz, numerous oil tankers have chosen to bypass the Cape of Good Hope in Africa, extending single-voyage journeys by 10 to 14 days. The increased voyage length has raised fuel consumption, labor and time costs. Meanwhile, shipping war insurance rates have soared from 0.25% to 3%, further pushing up oil transportation costs.
In addition to rising crude oil prices, multiple market factors have jointly supported the upward trend of freight rates. Firstly, the persistent security risks in the Red Sea and Persian Gulf have reduced shipping efficiency and raised operational risks, driving up shipping premiums due to market risk aversion. Secondly, frequent typhoons in the Asia-Pacific region have caused temporary port congestion and vessel schedule delays, leading to tight shipping space and an imbalance between supply and demand. Furthermore, with the approaching global trade peak season, pre-holiday stocking demand in Europe and the United States is gradually releasing, steadily increasing sea cargo volume.
Industry analysts predict that the high volatility of oil prices will continue in the short term. Uncertainties in the Middle East geopolitical situation will keep disturbing fuel prices and shipping efficiency. Supported by peak-season demand, global shipping freight rates will maintain a fluctuating upward trend in the next one to two months without a sharp decline. Foreign trade enterprises are advised to book shipping spaces and lock freight rates in advance to avoid market fluctuation risks. In the long run, shipping freight rates will gradually return to a reasonable range if crude oil supply tensions ease and geopolitical conflicts subside.
