Global shipping stocks climbed to fresh highs during Monday's trade, driven by surging oil tanker freight rates as ongoing tensions in the Middle East continued to disrupt shipping routes and keep transportation costs elevated.
Oil and product tanker stocks such as Torm (TRMD), Hafnia (HAFN) and Teekay Tankers (TNK) hit record highs as concerns mounted that crude oil supply disruptions linked to transit through the Strait of Hormuz could persist for longer, pushing freight rates higher.
The SonicShares Global Shipping ETF (BOAT) also reached an all-time high, as elevated transportation costs added a freight premium to oil shipments.
Meanwhile, the Breakwave Tanker Shipping ETF (BWET), which invests in near-dated crude tanker forward freight contracts, has surged dramatically this year as global crude transportation costs and tanker freight rates have soared.
CNBC's Brian Sullivan reported that continued tensions in the Middle East had driven up oil shipping costs, adding a freight premium to the overall cost of oil beyond benchmark crude prices such as Brent and West Texas Intermediate (WTI). Both Brent and WTI crude futures touched their highest levels in two weeks during Monday morning's trade.