Global shipping rates surge, raising costs for oil and LNG

RARE RISE IN COSTS STRAINS SHIPPING ROUTES VITAL TO GCC EXPORTERS

- BY JUSTIN VARGHESE

A rare year-end spike in global shipping rates is creating new challenges for the energy exporters worldwide, even across the Gulf, with freight costs for crude, LNG and bulk commodities climbing to levels not typically seen at this time of year.

Tanker earnings on key crude routes have surged by 467 per cent, while LNG shipping rates have climbed more than fourfold. Even iron ore and grain shipping costs have doubled.

These increases reflect a global supply chain under pressure from conflict-related disruptions, sanctions and changes in commodity flows. Instead of the usual seasonal slowdown, vessels are spending longer on extended routes, tying up capacity and pushing transport costs sharply higher. Industry executives expect the tightness to continue into early 2026.

For the GCC, these conditions directly influence the cost and competitiveness of its most important exports. Arabian Gulf crude and Qatar's LNG now face significantly higher costs to reach buyers in Asia and Europe, affecting pricing, margins and delivery schedules.