Sunday, January 29, 2023
HomeHeadlinesNordic American Tankers fixes suezmax for 12 months as 'insurance policy'


To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Nordic American Tankers fixes suezmax for 12 months as ‘insurance policy’

Nordic American Tankers issued an announcement according to which the company has fixed one of its suezmax tankers on a 1-year charter as “insurance policy”.

The announcement reads:

Dear Shareholders and Investors,

Tanker markets have been down in 2021. This was also the case for the third quarter. There are now improved conditions for our Suezmax vessels. During the last two weeks, we have concluded contracts reflecting this.

We wish to share the following with you:

1. Improving market conditions

We are concluding contracts almost daily for individual vessels in our 25 ship fleet. The shortest duration last week is for an inter-European voyage for about 20 days and the longest is a term contract with an oil company that starts in November 2021 for one year ($20,000 per day) plus options for two more years at significantly higher rates. The spot contracts are about $20,000 per day for each ship, reflecting the recent rise in daily rates. The operating cash break-even for our vessels are $8,000 per day per ship.

Most of our ships trade in the spot market. A term contract of one year or more is an “insurance policy” from a risk management standpoint, producing positive cash flow. Our strategy of trading in the spot market, while also locking some ships into profitable long term contracts, allows us peak flexibility.

2. Cash from insurance premium

We are members of the mutual War Risk Association (WRA), located in Oslo, Norway. The WRA has obtained approval from the regulators in Norway to return $300 million of its capital of $1 billion to its members. NAT is expected to receive $4 million to maximum $6 million in cash before the end of 2021 or early in the first quarter of 2022.

3. Ballast Water Treatment Systems

NAT has installed Ballast Water Treatment Systems on several of our ships, and will be installing such systems on all our ships, in accordance with regulations of the International Maritime Organization (IMO), London. NAT is taking the necessary steps to ensure our vessels are fully compliant with national and international regulations, enabling the NAT vessels to operate all over the world.

Our strategy has always been to run NAT with two objectives in mind: To be the best tanker company for both our shareholders and our clients. As the world emerges from the pandemic, both parties will profit from our proven expertise and attention to market conditions.

Our 3Q 2021 results will be released Tuesday November 30, 2021 before NYSE opening.


Herbjorn Hansson
Founder, Chairman & CEO

Related Posts


Finance & Economy
Shipping News

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

John Fredriksen Increases Stake in Euronav

Norwegian billionaire John Fredriksen has once again increased his stake in Belgian tanker company Euronav in wake of Frontline’s termination of its combination agreement...

First Citizens Bank Arranges $44.2 Million of Debt Financing for Navios Partners

First Citizens Bank announced that its Maritime Finance group, part of the CIT division, served as sole lead arranger on $44.2 million in debt...

Eagle Bulk Appoints Kate Blankenship to Board of Directors

Eagle Bulk Shipping Inc., one of the world’s largest owner-operators within the midsize drybulk vessel segment, announced that it has appointed A. Kate Blankenship...

Golar LNG: Unwind of majority of TTF hedges of 2023 and 2024 Dutch Title Transfer Facility exposure

Golar LNG Limited (“Golar”) announced that it has unwound the majority of its swap arrangements for its Dutch Title Transfer Facility (“TTF”) linked production...

Baltic index hits fresh multi-year lows on capesize dip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index falls for seventh session on lower capesize demand

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index hits fresh 2-1/2-year low as larger vessel rates slip

The Baltic Exchange’s main sea freight index extended losses to a sixth straight session...

Baltic index down for fifth day on lower vessel rates

The Baltic Exchange’s main sea freight index fell for the fifth straight session on...

Maritime UK: Net Zero Review published

On 13 January, the Department for Business, Energy and Industrial Strategy (BEIS) published the...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...

SC Ports handles nearly 3 million TEUs in record 2022

South Carolina Ports had a record 2022 with the most containers ever handled at the Port of Charleston. SC Ports moved nearly 2.8 million TEUs...

January oil loadings from Russia’s Baltic ports set to jump 50% vs Dec

Urals and KEBCO crude oil loadings from Russia’s Baltic ports of Primorsk and Ust-Luga in January are set to rise by 50% from December...