Herbjorn Hansson-led Nordic American Tankers (NAT) said it has fixed one of its suezmaxes to an unnamed oil company for up to three years. The firm contract, which commences this month, is for one year at a daily rate of $20,000, with options for two additional years at significantly higher rates.
The majority of NAT ships trade on the spot market, and a one-year or longer term contract is said to be a “insurance policy” in terms of risk management, 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.”
The New York-listed suezmax specialist has 25 vessels in its fleet, including two newbuilds scheduled to arrive in 2022. According to the company, contracts for individual vessels are being signed almost daily, with the shortest duration last week for an inter-European voyage lasting about 20 days.
