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Week 30: Baltic Dirty Tanker Index Shows Bad Week for Investors

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Baltic Dirty Tanker Index

The BDTI (Baltic Dirty Tanker Index) stood at 532 on August 1, 2016. For the week ending July 29 (week 30), the BDTI fell to 541 from 582 at the beginning of the week. The index fell every day of the week.

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

In week 30, the index was lower than last year’s level. On average, the index was 29% lower than in the same period last year. The crude tanker business is seasonal. It’s important to look at its year-over-year performance.

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Stock performance

Week 30 wasn’t a good week for crude tanker investors. Almost all of the crude tanker stocks ended in negative territory. Below are the stock returns of tanker companies for the week ending July 29, compared to their prices the week before:

  • Nordic American Tankers (NAT) fell by 8%.
  • DHT Holdings (DHT) fell by 6%.
  • Teekay Tankers (TNK) fell by 6%.
  • Tsakos Energy Navigation (TNP) fell by 4%.
  • Frontline (FRO) fell by 3%.
  • Navios Maritime Midstream Partners (NAP) fell by 1%.
  • Gener8 Maritime (GNRT) fell by 9%.

Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA rose by 1% during week 30. If you’re interested in broad exposure to the industrials sector, you can invest in the SPDR Dow Jones Industrial Average ETF (DIA).

In the next part of this series, we’ll discuss VLCC (very large crude carrier) rates.

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