US-Japan Tanker Shipping Costs Spike Ninefold

Oil shipping costs from the United States to Japan have surged nine times, reaching $40.50 a barrel. A single tanker trip from the US to Japan is now expected to cost $81 million, compared to an average of $9.1 million last year. These rising transportation costs are adding pressure to the final price of crude oil and its derived products.

The sharp increase in transport expenses means that businesses face higher costs when moving crude oil. This increase could eventually push up prices for consumers, as every $10 increase in shipping costs per barrel adds about 23 cents per gallon to gasoline costs.