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Shipping stocks reach record highs as Strait of Hormuz disruptions lift rates
Tanker and oil product freight rates rose amid Middle East tensions, sending shares in companies such as Torm and Hafnia to record levels.
Global shipping stocks climbed to fresh highs during Monday trading as disruptions tied to ongoing Middle East tensions continued to disrupt shipping routes and keep freight costs elevated, according to LiveMint Markets.
Oil and product tanker names including Torm, Hafnia and Teekay Tankers hit record highs as concerns grew that crude supply disruptions linked to transit through the Strait of Hormuz could persist longer, pushing tanker freight rates higher.
Shipping exchange traded funds also surged, with the SonicShares Global Shipping ETF reaching an all time high, while the Breakwave Tanker Shipping ETF rose sharply this year as global crude transportation costs and tanker freight rates increased.
LiveMint Markets also noted that the resulting freight premium can raise the overall cost of shipping crude beyond benchmark prices such as Brent.
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