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Week 20: Baltic Dirty Tanker Index Fell 16% Year-over-Year

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Baltic Dirty Tanker Index

The BDTI (Baltic Dirty Tanker Index) stood at 731 on May 23, 2016. For the week ended May 20, 2016—week 20—the BDTI rose to 744 from 732 at the beginning of the week. It rose on the first four days of the week and fell on the last day.

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

In week 20, the index was lower than last year’s level. On average, the index fell 16% compared to the same period last year. The crude tanker business is seasonal. It’s important to check its year-over-year performance. The BDTI tracks shipping rates for crude oil on representative routes.

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Stock performance

Week 20 wasn’t a good week for crude oil tanker investors. Almost all crude oil tanker stocks ended up in negative territory. Below are some stock returns on May 20, 2016, compared to their prices a week before.

  • Nordic American Tankers (NAT), DHT Holdings (DHT), and Frontline (FRO) each fell by 4%.
  • Teekay Tankers (TNK) fell by 14%.
  • Tsakos Energy Navigation (TNP) had a 0% return.
  • Navios Maritime Midstream Partners (NAP) fell by 5%.
  • General Maritime Partners (GNRT) fell by 9%.

Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA rose by 3% in week 20. Investors who are interested in a broader exposure to the industrials sector can invest in the SPDR Dow Jones Industrial Average ETF (DIA).

Series focus

We’ve looked at tanker stock performances in week 20. Next, we’ll see which tanker performed better that week. We’ll also look at the cost side of the tanker industry by reviewing bunker fuel costs.

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