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Comparing Crude Tanker Companies’ Time Charter Equivalent Rates

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Time charter equivalent rates

Crude tanker companies’ revenue is very sensitive to their tanker rates. In this article, we’ll compare crude tanker companies’ TCE (time charter equivalent) rates per day in Q1 2018. 

TCE rates, which represent voyage revenue minus voyage expenses, are used to compare crude tanker companies’ performance despite charter differences. Under time charter out contracts, the customer usually pays voyage expenses, while under spot charter contracts, the shipowner pays voyage expenses.

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Suezmax vessels’ TCE rates per day in Q1 2018

  • Teekay Tankers’ (TNK) TCE rate fell YoY (year-over-year) to $13,394 from $22,870.
  • Frontline’s (FRO) Suezmax TCE rate fell YoY to $15,400 from $23,400.
  • Nordic American Tankers’ (NAT) TCE rate fell YoY to $11,200 from $22,700.

Very large crude carriers’ TCE rates per day in Q1 2018

  • Navios Maritime Midstream Partners’ (NAP) TCE rate rose YoY to $39,139 from $38,547.
  • Frontline’s VLCC (very large crude carrier) TCE rate fell YoY to $14,900 from $34,400.
  • Euronav’s (EURN) TCE rate fell YoY to $18,725 for its spot vessels and $34,000 for its time charter vessels from $40,528 and $41,147, respectively,.

In the next article, we’ll compare crude tanker companies’ revenue in the first quarter.

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