Breakwave Tanker Shipping ETF (NYSE:BWET) was one of the top performers in the April 9 trading session, climbing about 15%. The surge came amid the reports from BIMCO that the global shipping order book has climbed to its highest level in nearly two decades.

Per the report, the global order book reached 191 million compensated gross tonnes (CGT) by the end of the first quarter of 2026, equivalent to 17% of the existing fleet, the highest ratio since 2011.

Tanker Activity Remains Strong

The global shipping industry is currently witnessing a powerful wave of new vessel orders with the tanker segment being the primary driver of the growth. Though total contracts fell 17% from the fourth quarter of 2025, new orders are running 47% above the average levels seen in the 2010s. A stronger freight market, a larger global fleet, and a growing need to replace aging vessels are fueling growth in new orders.

Newbuilding orders jumped 40% year-over-year in the first quarter to 17.6 million CGT, led by a sharp rise in crude tanker orders and a recovery in LNG carrier activity. Tankers alone accounted for 32% of total orders, representing their largest share since 2017, according to gCaptain, a maritime and industry news website that cited the report.

Geopolitical Developments

The Strait of Hormuz remains a critical chokepoint for global energy shipments, with any disruption historically triggering volatility in oil markets. Previously, reports suggested Iranian officials may allow limited vessel traffic under stricter conditions, including potential fees per barrel of oil transported.

Oil futures spiked on Thursday as President Donald Trump accused Iran of failing to uphold ceasefire expectations. He said Tehran was doing a “very poor job.”

The BWET Trade

BWET is the best-performing ETF of 2026, surging 782% year-to-date. It is the first and only freight futures ETF exclusively focused on crude oil tanker freight rates. The fund offers pure play exposure to crude oil tanker shipping and tracks the daily price movements of indices that track the future cost of transporting crude oil.

The ETF has $55.2 million in assets under management and trades in an average daily volume of 152,000 shares. It charges higher annual fees of 3.50% from investors.

The Trend Should Be Your Friend

Because BWET rolls from one futures contract to another, it is exposed to roll yield. Roll yield is positive when the futures market is in backwardation (the front-month contract is higher than the next-month contract) and negative when the futures market is in contango (the front-month contract is lower than the next-month contract).

Benzinga Edge Stock Rankings indicate that the BWET ETF has a Momentum score in the 100th percentile. It maintains a strong price trend in the short, medium and long term.

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