The New York-listed company Nordic American Tankers says nervousness in the stock markets does not impact NAT.

The company expressed its confidence, in an update addressed to its shareholders and investors, that the banking crisis and the fluctuations in the oil price does not affect the company.

The suezmax tanker specialist reveals in its statement that the market for its vessels continue to be strong.

“The tonnage balance, the demand and supply of ships are in our favor. Political uncertainty is good for our business. NAT has quality ships, quality operations and not least quality customers.” said NAT.

The shipowner of 19 suezmax tankers notes that “when we experienced uncertainty in the banking world in 2008, the order book for new suezmax tankers the following months and years stood at about 50% of the existing fleet. At this time, the corresponding number is at a low level of 2%, the lowest we have seen for decades. The supply side of our market is protected for years to come, thereby strengthening the fundamentals.”

NAT stands to benefit from the fact that the supply of Suezmax tankers will remain at historic low levels for at least the next two or three years, says the shipowner in its financial year report for 2022.

“The low orderbook for new tankers has always helped our industry,” in accordance with the suezmax tanker specialist.

The world’s Suezmax fleet (excluding shuttle, product & Jones Act tankers) counted 573 vessels as of December 31, 2022, with only 14 vessels in order (2% of the world suezmax fleet). Only six suezmax tankers for delivery from the shipyards for the balance of this year and only five Suezmax tankers are in the orderbooks for 2024. For 2025 there is so far only expected 3 vessels for delivery. For comparison, there was 32 Suezmax tankers delivered in 2022 alone.

The available shipyard capacity has to a large extent been booked by bulk, gas and container ships, leaving very limited capacity to build additional Suezmax tankers with quality yards on this side of 2025.