Even as the tanker industry has suffered from deteriorating earnings, lower dividends and stock prices, Nordic American Tankers (NAT) revealed that the spot market for its ships has tripled from just a few months back, and doubled just from 10 days ago.
Here is a snapshot at months beginning, of reported TCE earnings from West Africa (one of our main routes) during 2018 of NAT:
1st January 2018 TCE rates ~ USD 6000/day
4th April 2018 TCE rates ~ USD 4000/day
2nd July 2018 TCE rates ~ USD 6000/day
1st October 2018 TCE rates ~USD 9600/day
10th October TCE ~ USD 20600/day
“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. If spot markets increase another 25% and stays there for 12 months, we could earn 25% of our market cap in a year,” the company said.
Sea News, October 12