A major maritime chokepoint had an impact on Stainless Tankers earnings — just not the one you would expect.
The Oslo-listed, Tufton-backed chemical tanker owner said delays at the Panama Canal pared down pool earnings by $1,000 per day in the fourth quarter, where eight of its nine ships brought in $20,618 per day.
“While our pool [time charter equivalent] performance fell somewhat short of our target, this was mainly due to a short-term impact from logistical issues related to the ongoing Panama Canal disruptions,” chief executive Alex Karakassis said.
“Market earnings have remained at very attractive levels, and we expect the positive earnings environment to continue for the foreseeable future.”
For the quarter, Stainless Tankers earned a $3.2m profit on the back of $13.5m in profit.
The company had eight of its tankers in the Womar Pool, with the remaining ship on a time charter where it earned $15,424 per day. That ship comes off charter in April and will be entered into the Womar Pool.
Data from Stainless Tankers shows reduced transits for both the Suez Canal and Panama Canal, while chemical tanker rates have skyrocketed from November.
The Red Sea has recently grabbed the headlines — due to Houthi attacks on commercial shipping which are forcing many owners to opt for the Cape of Good Hope — but the Panama Canal has been suffering from low water levels due to drought, limiting the number of ships that can transit the key waterway each day.
It said issues at those chokepoints created logistical challenges for operators in the near term, but also helped to push up rates.
The company also suggests earnings will only strengthen in the coming months, with fleet supply expected to continue to tighten with longer tonne-miles, an ageing fleet and a small orderbook.
Stainless Tankers was listed in Oslo in April 2023 and intends to sell its fleet when the chemical tanker market begins to cool.
But the company told TradeWinds in November it expects the market to stay hot for the foreseeable future, putting any fleet sale years away.
Stainless Tankers intends to pay much of its profit as dividends. For the fourth quarter, the company is paying out just over $3m to shareholders, roughly $0.22 per share.
