Traditional spot market player Nordic American Tankers (NAT) has fixed one of its suezmax tankers on a one-year charter in a move described as an "insurance policy".
The unnamed ship has been fixed to an unnamed oil company at $20,000 per day starting in November plus options for two more years at "significantly higher rates".
The US-listed Herbjorn Hansson-led tanker owner said the operating cash break-even for its vessels are $8,000 per day per ship.
"A term contract of one year or more is an insurance policy from a risk-management standpoint, producing positive cash flow," the shipowner said.
"Our strategy of trading in the spot market, while also locking some ships into profitable long-term contracts, allows us peak flexibility."
NAT said it has also recently fixed one of its vessels for an inter-European voyage for about 20 days at a similar rate of $20,000 per day.
The shipowner said that while tanker markets have been down in 2021, there were now "improved conditions" for its 25-strong suezmax fleet.
In early October, NAT offloaded its oldest tanker, thought to be the 150,183-dwt Nordic Sirius (built 2000), in line with its fleet overhaul plans announced in the summer.
In late July, the US-listed suezmax specialist told investors that it was "working to sell a few ships and to buy some ships".
The company said it would sell at least two ships built in 2000 and 2002 and acquire "two or more younger vessels".
Last year, NAT ordered two newbuildings from South Korea's Samsung Heavy Industries with deliveries scheduled for 2022.
The ships were contracted in September 2020 for just $55m apiece but are now worth nearly $74.5m each due to the rise in the sale-and-purchase market, according to the latest figures from Clarksons.
Separately, NAT said it was in line to receive between $4m and $6m as part of the return of capital by the mutual War Risk Association (WRA), of which it is a member.
Oslo-based WRA has obtained approval from the regulators in Norway to return $300m of its capital of $1bn to its members, with payments expected to be made before the end of 2021 or early in the first quarter of 2022.
NAT is due to release its third-quarter results on 30 November 2021 prior to the opening of the market.
