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BDTI Index: November Ended on a Good Note

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Baltic Dirty Tanker Index

The BDTI (Baltic Dirty Tanker Index) stood at 907 on November 30, 2015. For the week of November 23–27, the BDTI rose from 888 to 904. The index rose consistently for the past 17 days.

The BDTI tracks shipping rates for the transportation of crude oil (DBO) on representative routes. Researchers and analysts follow the index to assess companies’ revenue and earnings potential.

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VLCC and Suezmax rates

On November 26, the VLCC (very large crude carrier) rates for the benchmark route, Gulf to Japan, rose to $76,500 per day from $76,250 the prior week, according to the Gibson Weekly Tanker Report. Also, Suezmax rates rose to $51,250 on November 26—compared to $48,500 per day the previous week.

What to expect?

Tanker rates have largely remained range bound for the past two to three weeks. According to the industry reports, more than half of the December program has been completed. The week ending on November 27 was slow for crude tankers due to the Thanksgiving holiday. Tanker owners hope to see more activity after the Thanksgiving break. The January program is expected to start soon. This will increase the crude tanker activity.

Stock performance

Crude tanker stocks moved in different directions. Teekay Tankers (TNK), Frontline (FRO), and DHT Holdings (DHT) recorded positive returns while Tsakos Energy Navigation (TNP), Nordic American Tanker (NAT), and Euronav (EURN) recorded negative returns.

  • DHT Holdings (DHT) rose by 9.3%
  • Frontline (FRO) rose by 3%—partly due to positive sentiments among investors after Frontline’s 3Q15 earnings release
  • Teekay Tankers rose by 2%
  • Nordic American Tanker (NAT) fell by 1.3%
  • Tsakos Energy Navigation fell by 4.9%
  • Euronav (EURN) fell by 2%.
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