Nordic American Tankers Ltd (NYSE: NAT) – Comments on the opening of the Suez Canal
Nordic American Tankers Ltd. reported on the effects of the recent Suez Canal blockage on tanker rates.
The blockade lasted from March 24 to March 29, 2021, resulting in a temporary spike in tanker rates. Rates for Suezmax tankers have already increased to between USD 15,000 and USD 25,000 per day.
The company has 24 ships on short-term contracts, indicating a strong market position and expectations for further rate increases in the coming weeks.
- Tanker rates increased to USD 15,000 - USD 25,000 per day.
- 24 ships are currently on short-term contracts.
- Strategic market position improved over the last two years.
- None.
Tuesday, April 6, 2021
Dear Shareholders and Investors,
On 24th of March 2021, one of the largest ships in the world blocked the Suez Canal. The ship was blocking the canal until Monday,
March 29, about a week after the closure.
Already Thursday, March 25, we commented on the blocking of the Suez Canal. Thereafter, when the canal was opened, tanker rates fell back, although slightly less than the original increase. The immediate strong increase in tanker rates due to this short blockage of the Suez Canal, is an illustration of a market nearing a boiling point.
Long before the Suez Canal was closed, we saw a strong increase in rates for our Suezmax tankers which can load one million barrels. The strategic position of our company has been substantially improved over the last two years. We have 24 ships trading on short term contracts, whilst one ship is on a longer term contract.
There is a strong drive in the market, indicating an improvement in the time to come. We have recently seen this improvement, having concluded contracts giving rates between USD 15,000 a day up to USD 25,000 a day.
In the weeks rather than months ahead, we expect an increase in rates for our ships. This development has already started.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC’s petroleum production levels and worldwide oil consumption and storage, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission, including the prospectus and related prospectus supplement, our Annual Report on Form 20-F, and our reports on Form 6-K.
NAT is a Bermuda based company.
Contacts:
Gary J. Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223
Bjørn Giæver, CFO
Nordic American Tankers Ltd
Tel: +1 888 755 8391 or +47 91 35 00 91
Herbjørn Hansson, Founder, Chairman & CEO
Nordic American Tankers Ltd
Tel: +1 866 805 9504 or +47 90 14 62 91
FAQ
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