Time charter equivalent
Crude tanker companies’ revenues are very sensitive to the tanker rates they earn.
In this article, we’ll compare the TCE (time charter equivalent) rates these crude tanker companies achieved in 4Q17.
What is TCE?
Time charter equivalent rates represent voyage revenues less voyage expenses. TCE is used to compare the performances of crude tanker companies despite changes or mixes in charter type. Under time charter out contracts, the customer usually pays the voyage expenses, while under spot charter contracts, the ship-owner pays the voyage expenses.
Suezmax vessels TCE comparison
- Teekay Tankers (TNK) earned a TCE of $16,644 per day for its Suezmax fleet in 4Q17—down from $23,495 per day in 4Q16.
- Frontline (FRO) earned a TCE of $19,600 per day for its Suezmax fleet in 4Q17—down from $23,500 per day in 4Q16.
- Nordic American Tankers’ (NAT) TCE for 4Q17 was $13,800 per day compared to $21,600 per day in 4Q16.
VLCC vessels TCE comparison
- Navios Maritime Midstream Partners (NAP) earned a TCE of $40,391 in 4Q17 compared to $40,719 in 4Q16.
- Frontline’s TCE for its VLCC (very large crude carrier) fleet was $19,400 per day in 4Q17—down from $32,900 per day in 4Q16.
- In 4Q17, Euronav (EURN) earned a TCE of $25,889 per day for its spot vessels and $35,399 per day for its time charter vessels compared to $33,161 per day and $43,833 per day for its spot and time charter vessels, respectively, in 4Q16.
In the next article, we’ll compare five crude tanker companies’ revenue performances in 4Q17.