Short Positions

Momentum in the sale and purchase and time charter tanker markets has historically been associated with general strengths and trends in the spot market. With the fourth quarter officially underway, owners appear to be cautiously waiting to see if, when and how the spot market is going to recover. It is no secret that asset prices and term charter rates have remained firm despite weakness in the spot market, but one area in particular that continues to exhibit strength is the 1-year MR time charter market. Chart below shows the spot market rates for Medium-Range (MR) product carriers, basis Caribbean – US (38kt), and the one-year and three-year time charters.