Daily charter rates for oil tankers have soared 467 per cent this year as shippers grapple with sanctions and route disruptions, reported London's Oilprice.com.

Despite typically weaker demand at year-end, rates for crude oil, LNG, iron ore and wheat shipments remain strong. Bloomberg data from the Baltic Exchange and Spark Commodities showed LNG tanker rates have quadrupled, while iron ore vessel rates more than doubled.

By late November, supertanker rates on the Middle East-China route hit their highest in five years as traders sought alternatives to Russian crude following US sanctions on Rosneft and Lukoil. Smaller tanker rates also rose as traders turned to all available vessels.

LNG spot charter rates on the US-Europe route reached their highest in two years, driven by surging American exports and tightening Atlantic supply.

Shippers continue to avoid the Red Sea route due to Houthi activity, adding weeks to voyages. Analysts said tanker rates have been climbing for over a month amid sanction-related disruptions that increased oil in transit.

While owners reap profits, they acknowledge inefficiencies in the market. Frontline Management CEO Lars Barstad described conditions as an "old-school, extremely tight physical shipping market," but cautioned that volatility makes forecasting uncertain.