World News
NAT CEO: Tanker Market Has Now Hit Bottom
Herbjørn Hansson, chairman and CEO of Nordic American Tankers Ltd. [NYSE:NAT] (NAT) says the tanker market has now hit bottom and that the company is positioning itself to take advantage of increasing oil consumption in China by buying vessels at current low prices.
Speaking on the CNBC television show Mad Money, Hansson said he has invested "many, many, many millions" of his own money in the company recently.
"That shows that I put my money where my mouth is," he said.
Responding to a question about reducing the dividend paid to shareholders, Hansson said the company is instead investing in newbuildings.
Despite the current glut of tankers in the market, he said, NAT is buying ships because they now cost $52 to $53 million, compared with $100 million a few years back.
"That shows the colossal upside we have," he said.
Hansson said Chinese imports of oil from the Middle East and West Africa have been growing to support increasing use of cars and other demand from that nation's economy, and that outweighs declines in shipments to the increasingly oil-independent U.S..
Shipping billionaire John Fredriksen said in January that he expects tankers to lead the shipping industry toward recovery over the next 15 to 20 months, but companies including UK-based shipping consultancy Drewry, and Teekay Marine Markets, say the tanker market will continue to struggle in 2013.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 624.50 | 1.00 | 732.00 | 8.50 |
| Rotterdam | 571.00 | 3.00 | 758.00 | 16.50 |
| Houston | 591.50 | 4.00 | 760.00 | 5.50 |
| Fujairah | 629.00 | 0.50 | 877.50 | 3.00 |
| Global 20 Ports Average | 637.00 | 0.00 | 819.00 | 3.00 |
| Global 4 Ports Average | 604.00 | 0.00 | 782.00 | 5.50 |
| Global Average Bunker Price | 688.00 | 2.50 | 879.00 | 1.00 |
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