Norway’s Hunter Group has managed to cut its charter losses as VLCC rates rose for its two tankers.
The Oslo-listed investment company said spot earnings averaged $37,510 per day, against the average $51,750 per day it pays to charter the unnamed ships in over three years.
The deficit was $14,240 per day for 60 vessel days, resulting in a loss of $854,400 for September.
In August, the company was $19,050 behind the charter-in rate, and July was $21,745 lower.
That was Hunter’s worst monthly performance since it began reporting the VLCC figures in February.
The only other time the net result has fallen below zero was in April, when it was fixing the VLCCs out at $45,180 per day, pushing the margin to -$6,750 per day and the result to -$349,170.
Hunter is backed by Norwegian investors including Morten Astrup and Arne Fredly.
VLCC rates fell for the fourth straight day on Friday.
The Baltic Exchange’s assessment of average time charter equivalent rates in the spot market dropped 6% to just under $37,200 per day — a 12.3% dive since Monday, when spot earnings peaked at $42,400 per day before turning downward.
Charterers in the driving seat
Friday’s rate was the lowest reading of the index since 2 October.
UK shipbroker Gibsons said VLCCs had endured a slow week, with remaining October cargoes covered.
“Due to the lack of activity/healthy supply of tonnage, charterers were able to find an opportunity to put pressure on freight levels, which led to an easing after they had sat steady for much of the week,” the London shop said.
This week, Gibsons believes owners will be hoping to see a flurry of activity for loadings in the first 10 days of November.
“Charterers should, however, be able to pick tonnage off as there is a decent overhang,” it added.
