Why US Gulf VLCC rates are rising and what it means

VLCC freight rates out of the US Gulf Coast (USGC) are rising sharply, driven by renewed crude export demand and tightening vessel availability.

The numbers behind this move explain why the market is paying close attention—and why Gulf operations should as well.

Key data and market drivers

1. USGC–China rates jumped sharply

The cost to ship 270,000 tons of crude from the USGC to China rose $1.9 million on Monday, according to Argus.

2. Total voyage cost reached $12.25 million

That figure includes $250,000 in port loading fees from Corpus Christi.

3. Cost per barrel is near multi-year highs

The rate equals $5.88 per barrel of WTI, the highest level since December 22 and just $0.97 below the three-year high seen in October.

4. Demand is not limited to China

A VLCC was fixed for USGC–South Korea at $12 million, excluding port fees, confirming broader Asia-Pacific demand.

5. Transatlantic routes also firmed

USGC–UKC voyages traded around $6 million, excluding port fees, with options extending toward Asia.

6. USGC–Rotterdam rates increased

The route opened the week at $5.25 million lump sum, including port fees—$250,000 higher than last week.

7. Chartering activity accelerated post-holidays

As year-end slowdowns ended, available VLCC tonnage tightened rapidly.

8. Global VLCC activity is synchronized

Similar demand pressure is being seen in Brazil, the Middle East Gulf, and West Africa.

9. Rate strength is spilling into midsize tankers

The VLCC rebound is now lifting rates across smaller tanker segments.

10. Venezuela is influencing expectations

Traders expect Venezuelan crude to move on VLCCs again, including 1 million-barrel cargoes potentially heading to India.

Rising VLCC freight rates from the US Gulf are being driven by measurable demand, tightening tonnage, and forward positioning ahead of seasonal and geopolitical events. 

For Gulf-based maritime operations, these rate levels signal increased vessel activity and compressed timelines. 

In markets like this, operational readiness, not speed, defines who captures opportunity and who absorbs risk.

Why US Gulf VLCC rates are rising and what it means