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Week 31: Baltic Dirty Tanker Index Continues Its Slide

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Baltic Dirty Tanker Index

The BDTI (Baltic Dirty Tanker Index) stood at 505 on August 8, 2016. For the week ending, August 5 (week 31), the BDTI fell to 509 from 541 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 31, the index was lower than last year’s level. On average, the index was 28% 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 31 was a mixed week for crude tanker investors. Tsakos Energy Navigation (TNP) and Nordic American Tankers (NAT) ended in negative territory, while other companies ended in positive territory. Below are the stock returns of tanker companies for the week ending August 5, compared to their prices the week before:

  • Nordic American Tankers (NAT) fell by 2%.
  • DHT Holdings (DHT) rose by 5%.
  • Teekay Tankers (TNK) rose by 2%.
  • Tsakos Energy Navigation (TNP) fell by 3%.
  • Frontline (FRO) gave a 0% return.
  • Navios Maritime Midstream Partners (NAP) rose by 7%.
  • Gener8 Maritime (GNRT) rose by 2%.

Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA fell by 1% during week 31. 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 crude tanker rates.

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