US-listed shipping stocks closed the first quarter up nearly 40% on average as investors flooded into the sector after shunning it for much of Covid-plagued 2020.
Jefferies lead shipping analyst Randy Giveans called it a "record" performance by shipping during his years of coverage, as 31 of the 32 stocks under his research gained ground.
Shipping dramatically outperformed both the S&P 500, which lifted 7%, and the Russell 2000 Index of small-cap stocks, which climbed 14.1%.
The strongest performance came in markets where hire rates staged a comeback from the depressed levels at the pit of the pandemic.
Dry bulk stocks led the way with an average 68% gain, while containerships followed close behind with a 61% surge.
"Dry bulk rates rallied to multi-year highs, beating everyone's expectations in what is historically a relatively weak quarter of the year," Giveans said in a message to TradeWinds.
"Container rates hit record highs and containership charter rates climbed almost every week, reaching decade-high levels."
But what happened in tankers might prove even more interesting than the gains on the dry side.
Listings there climbed an average of 29% at a time when operators in many segments are struggling below their financial break-evens as inventory destocking stemming from the 2020 oil glut continues to take a toll on rates.
The apparent takeaway: investors perceive tankers to have hit bottom and are starting to move into the stocks in anticipation of a rates rebound similar to that seen in the dry trades.
"For the quarter ahead, tanker rates will be driven primarily by Opec production and refinery utilisation, both of which will be driven by economic recovery," Giveans said.
"Regardless of rates volatility in the second quarter, we expect a much-improved tanker rate environment in year's second half, as global demand, crude oil production and refinery utilisation increase in the coming months."
As for performance by individual shipowners, listings in dry bulk and containerships dominated the top of the list.
Greek boxship owner Danaos Corp and Angeliki Frangou's Navios Maritime Partners, which controls both bulkers and containerships, both logged triple-digit gains. Danaos shot up 137% and Navios Partners gained 110%.
