From 24/7 Wall St. · Omor Ibne Ehsan · · 1m 40s
Shipping Oil Costs $1M Daily, Tiny ETF Surges 4,000%
Supertanker charter now costs $1 million daily; one ETF jumps 4,229% in a year.
In brief
Supertanker charter now costs $1 million daily; one ETF jumps 4,229% in a year. A single supertanker charter from the Gulf now costs $1 million per day, while the Breakwave Tanker Shipping ETF (BWET) has surged 4,229.08% year to date. Originally reported by 24/7 Wall St..
Supertanker Charter Costs $1M Daily
Chartering a modern supertanker out of the Gulf now runs roughly $1 million a day.
Breakwave ETF Surges 4,229% Year to Date
The Breakwave Tanker Shipping ETF (NYSEARCA:BWET) has become one of the strangest performers on any US exchange, up 4,229.08% year to date.
What the Rate Actually Prices
A day rate is what an oil major pays a shipowner to move one cargo, expressed per day the vessel is on hire.
Strait of Hormuz Closure Impact
The binding constraint is the supply of owners willing to send a hull past the strait while the US Navy is convoying traffic and shut-in production has already curtailed flows.
War-Risk Insurance Premiums
War-risk insurance premiums that once cost single-digit basis points of hull value can jump by an order of magnitude on one overnight bulletin.
How Costs Reach Gas Pumps
Households pay for refined products like diesel, which is the most sensitive to freight costs.
Why the Fund’s Return Is a Rear-View Mirror
Breakwave holds a rolling basket of tanker freight futures, so its price reflects expected day rates over the next several months.
Bull and Bear Cases for BWET
The bull case rests on duration; the bear case is mechanical, with the fund being a leveraged bet on the geopolitical condition persisting.
Here's the gist
A single supertanker charter from the Gulf now costs $1 million per day, while the Breakwave Tanker Shipping ETF (BWET) has surged 4,229.08% year to date.
