Bermuda October 11, 2018
Recently, the tanker industry has suffered from deteriorating earnings, lower dividends and stock prices.
We are happy to inform our friends that the spot market for our ships now has tripled from just a few months back, and doubled just from 10 days ago. That’s good for all of us.
Just to illustrate, here is a snapshot at months beginning, of reported TCE earnings from West Africa (one of our main routes) during 2018:
1st January 2018 TCE rates ~$6000/day
4th April 2018 TCE rates ~$4000/day
2nd July 2018 TCE rates ~$6000/day
1st October 2018 TCE rates ~$9600/day
Yesterday 10th October TCE ~$20600/day
This means a world of difference.
If spot markets increase another 25% and stays 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.
Chairman & CEO
Nordic American Tankers Ltd