The landscape of global logistics has shifted dramatically since March of this year, as the geopolitical situation in the Middle East deteriorated over the past few months. In the latest development, despite the U.S. House voting to rein in President Trump’s war powers in Iran, Hezbollah has officially rejected the latest ceasefire agreement with Israel amid persistent strikes by the latter on Lebanon, thereby offering no respite to the ongoing regional instability. 

With the Strait of Hormuz effectively constrained and ship traffic remaining well below pre-conflict levels, the disruption to global supply chains appears to have evolved from a temporary shock into a new normal.

Amid this backdrop, while the S&P 500 has fluctuated over the past few months, the shipping industry has remained in a structural bull market. From tanker operators rerouting vessels around Africa to air freight carriers transporting high-value AI servers, many companies across the sector have benefited from favorable market conditions.

So, if you missed the first wave, it is not too late to gain exposure to these companies, and a cost-effective, safer way to do that is to invest in shipping exchange-traded funds (ETFs) offering diversified exposure to this industry.

Before identifying shipping-focused ETFs to add to portfolios, it is important to examine the industry's latest trends and statistics so investors can make more informed investment decisions.

Crisis-Driven Rates Fuel Growth

The industry's recent performance has been striking. For example, Frontline Plc (FRO Quick QuoteFRO - Free Report) , a global leader in the seaborne transportation of crude oil, reported first-quarter 2026 profit of $560 million, more than doubling sequentially and surging roughly 1,500% from the prior-year period’s level.

The company reported VLCC (Very Large Crude Carrier) spot rates averaging $103,500 per day in the first quarter, compared with $37,200 in the prior-year quarter. This massive growth was primarily driven by the war that forced oil to travel longer distances. A shortage of available vessels further pushed spot tanker rates sharply higher. As a result, the stock has gained 56.5% year to date. 

A similar trend has emerged in air freight, where cargo rates have risen in response to higher jet fuel costs. Global air cargo spot rates surged 30% year over year in April to an average of $3.34 per kilogram, marking their highest level in three years. The increase was driven primarily by geopolitical tensions in the Middle East and the resulting rise in jet fuel prices.

Carriers from Asia-Pacific witnessed a significant boost in air cargo demand and higher spot rates as shippers diverted freight to avoid Middle East airspace disruptions and maritime chokepoints amid the Iran conflict. According to the International Air Transport Association (“IATA”), Asia-Pacific carriers recorded the strongest global cargo growth in April, with demand growth of an impressive 10.5% year over year.

How ETFs Come Into Play?

While picking individual winners like FRO is tempting, navigating a "shock economy" requires extreme caution. A single headline — a sudden, unexpected truce in Lebanon or a surprise easing at the Strait of Hormuz — can cause an isolated shipping stock to swing wildly on sentiment alone.

On the other hand, physical reality moves much slower: global spot carrier rates will not collapse abruptly overnight. Gaining exposure through exchange-traded funds (ETFs) bridges this gap perfectly. Rather than tying your capital to the volatile fate of one entity, an ETF captures the broad price appreciation generated by the entire sector's elevated pricing power. 

This basket-of-stocks approach provides instant diversification across ocean liners, product tankers, air freight integrators, and port operators, thus allowing you to ride the powerful macro tailwinds of surging freight yields while buffering your portfolio against company-specific operational downfalls.

If you are looking to enter this trade today, the following diversified funds offer the cleanest exposure to the industry’s ongoing upward momentum: 

Breakwave Tanker Shipping ETF (BWET Quick QuoteBWET - Free Report)  

This fund, with net assets worth $35.43 million, offers exposure to the crude oil tanker shipping market through a portfolio of near-dated futures contracts on indices that measure the cost of shipping crude oil. It charges 350 basis points (bps) as fees. 

BWET has surged an explosive 990.1% year to date and traded at a volume of 0.14 million shares in the last trading session. 

SonicShares Global Shipping ETF (BOAT Quick QuoteBOAT - Free Report)  

This fund, with net assets worth $74.3 million, offers exposure to global shipping companies engaged in the maritime transportation of goods and raw materials, including consumer and industrial products, vehicles, dry bulk, crude oil and liquefied natural gas. FRO holds the first spot in this fund, with 5.84% weightage. 

It charges 69 bps as fees. BOAT has soared 29% year to date and traded at a volume of 0.01 million shares in the last trading session. 

Breakwave Dry Bulk Shipping ETF (BDRY Quick QuoteBDRY - Free Report)  

This fund, with net assets worth $38.2 million, offers exposure to the daily change in the price of dry bulk freight futures. It charges 350 bps as fees. 

BDRY has rallied 44.4% year to date and traded at a volume of 0.06 million shares in the last trading session. 

U.S. Global Sea to Sky Cargo ETF (SEA Quick QuoteSEA - Free Report)  

This fund, with net assets worth $18.6 million, tracks the performance of marine shipping, air freight and courier, and port and harbor operating companies. Evergreen Marine Corp Taiwan holds the first spot in this fund, with 5.50% weightage. 

It charges 60 bps as fees. SEA has soared 21.4% year to date and traded at a volume of 0.01 million shares in the last trading session.