Hong Kong hedge fund beats peers with bets on oil tankers while cutting AI
A Hong Kong hedge fund that outperformed peers says shipping stocks are a better trade than artificial intelligence, given the risks of tech companies overspending.
HD Capital Ltd.’s flagship fund allocated 11 percent of its portfolio in oil transport and 6.1 percent in shipbuilders as of April, making them its largest exposure. The $200 million multi-asset fund beat 97 percent of its peers this year and over a five-year period, based on industry data provider With Intelligence.
“The tanker cycle could remain strong well into 2028–2029, as new capacity won’t arrive until then,” said Michael Wang, chief investment officer at HD Capital. “Supply is tightly constrained, while demand can easily be triggered by geopolitical shocks. That’s why the shipping cycle has visibility for years ahead.”
Shipping rates have risen significantly due to the Middle East conflict, while years of underinvestment left global shipbuilding capacity constrained, limiting new supply.
U.S. Coast Guard’s newest icebreaker returns from Arctic patrol
The U.S. Coast Guard’s newest polar icebreaker has returned to Seattle after a 36-day deployment to the Bering Sea, marking an early operational test for a cutter expected to play a growing role in U.S. Arctic operations.
USCGC Storis (WAGB 21) returned last Monday to its temporary Seattle homeport following a winter patrol focused on icebreaking performance, operational readiness, joint operations and logistics in the high latitudes.
Commissioned in 2025, Storis is the Coast Guard’s first newly commissioned polar icebreaker in more than two decades. The 360-foot medium icebreaker was deployed to assess its performance in Arctic conditions and establish baseline data for future Coast Guard and allied operations in ice-covered waters.
European maritime drug operation
European law enforcement agencies say they have disrupted a major transatlantic narcotics corridor known as the “Cocaine Highway,” seizing 11 tonnes of cocaine and 8.5 tonnes of hashish during a coordinated maritime operation targeting offshore trafficking networks operating between the Canary Islands and the Azores.
The two-week operation, led by Spain’s Guardia Civil and coordinated through Europol, resulted in 54 arrests and the interception of eight vessels suspected of participating in complex at-sea drug transfers designed to bypass major European ports and evade detection.
The crackdown marks the latest escalation in Europe’s growing maritime battle against increasingly sophisticated offshore trafficking networks that have shifted operations deep into the Atlantic Ocean.
The Strait of Hormuz crisis
The U.S. dollar-dominated global oil trading system is being tested by the Iran war and the closure of the Strait of Hormuz, as governments in major consuming nations turn to increasingly opaque deals with Tehran and Gulf producers to secure supplies.
Since the outbreak of the war on February 28, roughly a fifth of global oil supplies from the Gulf have been disrupted, dealing a tough blow to economies, particularly in Asia, which depends on the Middle East for about 60 percent of its imports.
With the Hormuz blockade now in its 13th week, there are growing signs that major Asian importers are adapting to the new reality by striking direct arrangements with Gulf producers, often with Tehran’s consent, to allow vital flows of crude, chemicals and fertilizer through the Strait.
In recent days, several oil tankers have crossed Hormuz, frequently sailing with their tracking systems switched off to avoid detection, following direct contacts between leaders in the purchasing countries and Iran.
The great battleship debate
The U.S. Navy has not commissioned a battleship since 1944. Donald Trump now wants as many as 25. The first, USS Defiant, will displace more than 35,000 tons, carry hypersonics, lasers, and a 32-megajoule railgun, and will potentially cost more than a nuclear aircraft carrier. Bath Iron Works and Ingalls Shipbuilding are quietly raising hands but whispers of new entrants like Hanwha’s Philly Shipyard or California Forever are starting to emerge.
Last week, on Sal Mercogliano’s What’s Going On With Shipping, gCaptain founder John Konrad sat down with Dr. Zack Cooper of the American Enterprise Institute to have the actual argument Sal is calling The Great Battleship Debate. One hour. No talking points. No carrier admirals running cover. No gatekeeping.
Iran launches bitcoin-based insurance scheme
Iran has started a Bitcoin-backed insurance service for Iranian shipping companies that want to transit the Strait of Hormuz, the semi-official Fars news agency reported, citing documents obtained from the country’s Ministry of Economy and Financial Affairs.
According to a screen shot of the insurance company’s website, dubbed Hormuz Safe and shared by Fars news, it “provides Iranian shipping companies and cargo owners with fast, verifiable digital insurance.” Fars didn’t give a detailed break down of how the insurance works and whether it’s available to foreign shipping companies and vessels.
Iran is heavily sanctioned by the US and its use of cryptocurrencies like Bitcoin and Tether has ballooned since President Donald Trump started targeting its economy and energy exports during his first administration.
Port of Los Angeles chief says shipping won’t normalize
The Port of Los Angeles reported strong results in April, but the port’s head warns that high energy prices are hitting the trucking community hard. April was the best month of 2026 and the strongest since last August. The nation’s largest port handled 891,000 container units, up more than 5.5 percent from a year ago and 18 percent from the previous month. This ranks as our second-best April on record, said Gene Seroka, executive director of the Port of Los Angeles. What’s driving this is the American consumer. They are still resilient, still spending.