NAT cuts losses in third quarter

Voyage revenues for the period also improved on last year, up from $15.4m to $22.5m.

Time charter equivalent earnings were around $16,500 per day, over twice the $8,000 per day in the preceding quarter.

In its market outlook, NAT was positive on the supply side, citing a low orderbook, low shipyard capacity, its belief that a number of ships on order are unlikely to ever be delivered, and a high number of ships in the current fleet approaching their 15 year special surveys as reasons for optimism.

NAT has a fleet of 20 suezmax vessels. The world suezmax fleet stood at 449 vessels at the end the last quarter, an increase of 15 since the start of 2013. Less than 10% of the suezmax fleet is on order, totalling 44 ships, with eight scheduled for delivery in 2014. The company believes that between 10 and 20 vessels in the orderbook will never be delivered.

"In terms of transportation work (ton miles), the reduced imports to the US are more than outweighed by the increased imports to the Far East" the company said, "The economies of the Far East generally show continuing growth, although at a slower pace than before." NAT believes that this increase in ton-mile demand, coupled with the possibility of a reduction in the size of the suezmax fleet in the coming years, may have a positive impact on utilisation and charter rates.

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