Baltic Dirty Tanker Index
The BDTI (Baltic Dirty Tanker Index) for week 51, which ended December 23, 2016, rose to 919 from 911 at the beginning of the week. It rose every day that 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’ revenues and earnings potential.
In week 51, the index was higher than last year’s level. On average, the index was 3.0% higher than in the same period last year. The crude oil tanker business is seasonal, so it’s important to look at its year-over-year performance.
Week 51 was a mixed bag for crude oil tanker investors. DHT Holdings (DHT) was the top performer, and Nordic American Tankers (NAT) and Frontline (FRO) were the worst. Below are the stock returns of tanker companies for the week ended December 23 compared to their prices the week before:
- Nordic American Tankers (NAT): fell 5.0%
- DHT Holdings (DHT): rose 6.0%
- Teekay Tankers (TNK): fell 3.0%
- Tsakos Energy Navigation (TNP): fell 2.0%
- Frontline (FRO): fell 5.0%
- Navios Maritime Midstream Partners (NAP): stable at 0.0%
- Gener8 Maritime (GNRT): fell 3.0%
Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA fell 1.0% during week 51. If you’re interested in a 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 take a look at crude oil tanker rates.