NAT’s Tanker Rates Witness Strong Upswing

TankerIllustration. Image Courtesy: Pexels under CC0 Creative Commons license

Tankers have recently experienced a strong recovery in the spot market, which tripled from just a few months back.

Namely, the tanker industry has suffered from deteriorating earnings, lower dividends and stock prices, but the headwinds seem to be over as shipping company Nordic American Tankers (NAT) reported that the spot market for the segment doubled from just 10 days ago.

NAT’s data shows that, at the start of the year, the company’s time charter rates (TCE) from West Africa, one of its main routes, were at USD 6,000 per day. These fell to USD 4,000 per day at the beginning of April, only to return to USD 6,000 per day in July.

In early October TCE rates jumped to USD 9,600 per day, and continued rising to reach USD 20,600 per day on October 10.

“This means a world of difference,” Herbjorn Hansson, NAT Chairman & CEO, said, adding that “if spot markets increase another 25% and stay there for 12 months, we could earn 25% of our market cap in a year.”

“Spot market earnings are volatile, but volatility is usually a sign of an improved underlying market balance and we have been firm believers in a market turnaround this year.”

Share this article

Follow World Maritime News

In Depth>

Events>

<< Sep 2019 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

The Smart Ship Exchange

The Exchange will look at the issues involved with increasing autonomy in shipping with an introduction to the concept…

read more >

3rd MarSat Workshop

The MARSAT project wants to operationalise and standardise EO products and aims to develop…

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >

OEE Conference & Exhibition 2019

OEE2019 is organised by Ocean Energy Europe, the industry association representing ocean energy in Europe.

read more >