Smooth Sailing Or A Bumpy Ride Ahead For Shipping ETFs?

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Container shipping rates soared in the second half of 2020 due to supply chain disruptions worldwide caused by the pandemic. However, the industry is now facing headwinds as the demand for goods has plunged due to rising inflation and a shift in spending from goods to services.

The Breakwave Dry Bulk Shipping ETF (BDRY - Free Report)  provides a pure-play exposure to dry bulk shipping using futures. It was the best performing ETF of 2021 but is currently down about 18% year-to-date. Freight rates could rebound in the coming months if China's economic recovery picks up gradually.

The war in Ukraine had boosted tanker shipping rates amid disruptions in the traditional shipping routes due to sanctions on Russian oil. However, recent supply cuts announced by OPEC+ sent these rates lower.

The Breakwave Tanker Shipping ETF (BWET - Free Report) is designed to profit from increases in oil freight futures beyond what is already priced into the market.

There is a growing focus on sustainability in shipping, as the United Nations has mandated the industry to reduce carbon intensity by 40% by 2030 and 70% by 2050.

The ETFMG Breakwave Sea Decarbonization Tech ETF (BSEA - Free Report)  invests in global companies involved in actively reducing the environmental impact of the global maritime sector.


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