Jones Act tanker rates are surging, according to American Shipping Company.
The Oslo-traded US-flag shipowner said time charter fixtures were hitting $60,000 per day in its second quarter earnings report Monday.
"[I]t is encouraging to see that the overall market dynamic is playing out as expected with ... new time charter contracts being secured at higher levels compared to last fall," said chief executive Pal Lothe Magnussen.
"We expect this market development to continue going forward, resulting in gradually improving market conditions."
For the second three months of 2019, the company reported a profit of $2.5m, up $1.1m year-over-year, while bareboat revenue remained flat at $21.9m.
Meanwhile, the company's charter backlog has grown from $182 million with an average weighted tenor of 2.1 years to $259.2 million with an average weighted tenor of 3 years.
American Shipping Company also scrapped two ATBs during the quarter and declared an $0.08 dividend.
