The good market for all Nordic American Tankers tankers is continuing.
The company started the New Year and the new quarter with booking one of their 23 Suezmax tankers for a Time Charter Equivalent (TCE) in excess of $100,000/day. Although this type of rates cannot be expected for all their vessels in all areas, it is another confirmation of the strength of the market. The operating costs for such vessels are $8,000/day for each vessel.
During the last few days, there is a political uncertainty in the Middle East, a center for seaborne oil transportation.
In NAT’s reports they have repeatedly stated that political uncertainty is often positive for the tanker market. Dislocation of oil production now leads to longer transportation distances. With or without political uncertainty, the tanker market is strong.