A basket of 35 U.S.- and European-listed shipping stocks has climbed about 68% this year, more than five times the S&P 500’s gain, and 82% over the past 12 months. Crude-tanker stocks have led the rally, up 120% year-to-date, while the Breakwave Tanker Shipping ETF has surged more than 2,300% this year. The crisis in the Strait of Hormuz, triggered by the Iran war, has forced tankers onto longer routes and pushed up insurance costs, tightening the effective supply of vessels. Several sector stocks, including Danaos Corp, Frontline PLC and Teekay Tankers, are trading at their highest levels since 2008 and 2011 respectively.
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