The Breakwave Tanker Shipping ETF (BWET) reached a record price of $1,012.75 on October 8, 2026, marking a 5,157% increase year-to-date. The fund, which tracks supertanker freight rates, rose from a low of $17.65 in December 2025. Approximately 90% of the fund tracks the TD3C benchmark route from the Middle East Gulf to China.
Freight rates for the Gulf to East Asia route reached nearly $1.4 million per day by October 7, 2026, compared to approximately $30,000 in January. This surge follows disruptions in the Strait of Hormuz and subsequent inefficiencies caused by ship-to-ship transfers in the Gulf of Oman and off India. Over 40% of the global fleet of 850 supertankers is currently positioned near the Gulf.
The cost of freight now represents roughly 27% of the delivered price of a barrel of oil, up from 3% in January. Charterers are increasingly utilizing smaller Suezmax and Aframax vessels for November loadings. Meanwhile, the supertanker orderbook has grown to 38% of the current fleet, a significant increase from 15% a year ago.
Market analysts note that fund assets declined from a September peak of $340 million to approximately $247 million. Additionally, the Baltic Exchange, which publishes the TD3C index, is facing a lawsuit from commodity trader Mercuria, which claims the index no longer accurately reflects market conditions. Poten & Partners anticipates that freight rates may decline if the crude market loosens.
