Nordic American Tankers reports surging spot charter rates

Nordic American Tankers has reported strong market conditions for its tanker fleet, with recent spot charter fixtures reaching as high as $200,000 per day.

In a shareholder letter released on September 15, founder, chairman and chief executive officer Herbjorn Hansson said daily vessel operating costs remained below $10,000, allowing the company to retain surplus charter revenue as cash.

Among the highest recent fixtures was a 60-day charter agreed with an oil trader at approximately $200,000 per day. Another 31-day charter with an oil major was fixed at around $183,000 per day.

Additional fixtures with energy traders included an 80-day contract at about $98,000 per day and a 64-day voyage achieving a time charter equivalent rate of roughly $60,000 per day.

Charters with oil majors also secured firm rates. These included a 19-day booking at a time charter equivalent rate of around $88,000 per day and a 65-day engagement at about $70,000 per day.

The company also concluded a 77-day fixture with an oil major at $61,000 per day and a 53-day voyage at approximately $60,000 per day.

Addressing differences between the rates achieved across recent fixtures, Hansson said, “By nature, spot contracts are volatile, which is why we see short term variations.” He added that the commercial direction for the company remained upwards.