|Tanker stocks surge as Suez blockage hoists freight rates|
Mar. 26, 2021 1:51 PM ET Nordic American Tankers Limited (NAT) By: Carl Surran, SA News Editor 13 Comments
Tanker stocks are extending their gains thanks to the continued blockage of the Suez Canal, as the chaos is expected to raise transportation rates.
Gainers are led by Nordic American Tankers ( NAT +14.2%), where a board member also bought 50K shares at $3.69 each.
Also: TK +11.9%, FRO +6.8%, DHT +5.3%, TNK +5.2%, EURN +4.2%, DSSI +3.8%, STNG +2.9%.
Freight rates have jumped 20% for large LR2 oil product tankers traveling from the Mediterranean in mid-April, as vessel supply continues to decline, according to Bloomberg, citing Torm A/S, one of the world's largest owners of oil product tankers.
The TC1 shipping index benchmark for LR2 vessels from the Middle East to Japan has climbed by a third since last week to WS 137.5, thanks to a slim number LR2 vessels in the region available to load before April 12.
At least four LR2 tankers that might have been headed towards Suez from the Atlantic basin are now likely evaluating a passage around the Cape of Good Hope, Braemar ACM says.
The Suez blockage could cause a significant impact on the market for liquefied natural gas, potentially delaying delivery to Europe of ~1M metric tons of LNG if the blockage lasts for two weeks.