The shipping sector is attracting long-term financial investors as the Middle East crisis boosts potential returns on vessel prices and freight rates. Asset managers with shipping portfolios have noted increased interest from pension funds and large institutional investors seeking exposure to hard assets.

Nicolas Tirogalas, chief executive of Tufton Investment Management, said major capital allocators are actively buying shipping. Andreas Povlsen, head of maritime at Hayfin, noted investors are cycling out of other hard assets like aviation or real estate. Hayfin is raising its next maritime fund aiming to double commitments compared to its previous $620mn fund.

Investors are targeting 'HALO' investments detached from AI-driven stock market activity. Despite expectations of a down cycle, the Strait of Hormuz closure and Red Sea disruption have kept freight rates at historic highs. Breakwave Tanker Shipping ETF has surged over 23-fold this year.

While some warn of downside risks, Tirogalas believes dry-bulk shipping markets are far from peaking. Olivia Watkins at Veson Nautical noted extremely high earnings for chartered ships are driving unexpected asset price levels near 2008 records.