Tufton Assets continues to optimize the operation of its tanker and cargo ship fleet by registering new contracts and extending previous ones. In October 2023, the company extended two MR tankers named Catherine Grace and Madelyn Grace for another year, doing so at rates higher than previous contracts.
Increase in Charter Rates
The maritime investment company Tufton has announced that in its third-quarter report, it has confirmed improved conditions for three other ships and has put two Handysize vessels into operation with new contracts. One of the new contracts includes the tanker Mia Grace, established at a daily rate of $39,000 for a period of 12 to 14 months, which represents an 81% increase from the previous rate of $21,500.
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Another development during this period is the Handysize cargo ship named Amilyn, which generates over $15,000 daily, and the contract for its sister ship Staithes has been converted to a fixed rate of $19,000 per day for the fourth quarter.
Market Impacts and Geographical Conditions
Tufton is clearly benefiting from rising maritime transport rates. This increase has been driven by disruptions in the Strait of Hormuz and a decrease in the availability of compliant tankers. Additionally, demand for dry goods such as grains, iron ore, and bauxite has contributed to increased revenues in the cargo sector.
Tufton's fleet currently consists of 21 ships, including eight tankers, two chemical tankers, and 11 cargo ships. The net asset value of the company reached $1.63 per share at the end of September, indicating a total return of 5% for the quarter.
Earlier this year, the company expanded its operations in the dry cargo sector by purchasing two Japanese-built Handysize ships for $33 million. These two ships were added to the fleet in April.
Over time, new chartering opportunities are ahead for Tufton, as existing contracts for three tankers and four cargo ships will expire in the coming months. The company is assessing the market for new hires to take advantage of higher rates.
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