Tufton Assets has chartered one of its MR tankers at a price of $39,000 per day, reflecting an 81% increase from the previous rate of $21,500 per day. This contract is set for a duration of 12 to 14 months and is expected to take effect from September 30.
Contract Details and Financial Impacts
This new charter will result in an annual rate of approximately 29% based on the tanker valuation in June. Additionally, Tufton has signed a contract for its Indian-sized vessel, Amlyn, for a duration of 9 to 11 months at a rate exceeding $15,000 per day, which is about 20% higher than the $12,750 per day recorded in February for its sister ship, Whitby.
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Market Analysis and Sanction Impacts
Tufton has also activated an option to change the contract related to the Stathis tanker to a fixed rate of $19,000 per day for the fourth quarter of this year. This vessel will return to a floating rate at the end of the year, and Tufton has also retained an option for chartering in the first quarter of 2027. These contracts are being executed during an exceptional period for the tanker market. Tufton has observed a close correlation between the tightening market and sanctions and disruptions in the Strait of Hormuz, leading to a reduction in the number of matching tankers, with these changes shifting from crude oil to product tankers.
The overall tanker market remained significantly tight in September, and product tanker rates have also benefited from changing trade patterns in the Gulf. Tufton currently owns 21 vessels in the product tankers and Indian-sized loading sectors, and earlier this year, the company recorded an agreement to purchase two Indian-sized vessels built in Japan for $33 million to increase its exposure to dry cargo.
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